How do you succeed in a recession?
Offer customers greater value for less money.
Impossible? Not at all!
During good times almost any strategy works. You are a bit expensive? Haven’t improved much over the last few years? Have a few quality problems? No problem. Customers forgive and say, please don’t do it again. Long term friendships do not break easily—unless someone else is offering much greater value for less. And even then the decline in business for the lagging firm is slow.
In good times your ability to get in front of the customer, your ability to market and sell, may be the most important aspect for businesses. You must really screw up to lose the business.
Hard times are different. Every penny counts. In a real sense hard times are a necessary and useful part of the business cycle. As painful as they are, they make society stronger, weeding out marginal businesses, those that cannot offer greater value, can’t find a way to adapt or keep improving. This clearing and cleansing makes way for the next cycle of growth and development.
Is it possible to offer more for less? Read a few comments from some of our customers who have done exactly that.
Why? How is it possible? The way was shown by Walter Shewhart and W. Edwards Deming. These two pioneers revolutionized our understanding of quality and of management. During World War II they helped completely transform US industry. Not only did the US move from a peace time economy to a war time powerhouse but production was revolutionized, with an incredible surge in productivity. Production won the war. In Japan after the War Deming provided seminars that turned Japan, a defeated nation with no natural resources, a small mountainous island into the second largest economy in the world whose products were sought worldwide. And in the 1980s Deming once again helped transform American management that prior to his being rediscovered in the US was helpless in the face of Japanese competition that was regularly offering better products at a lower price.
How does a company offer more value for less?