Mar

Two Reasons Deflation Is Good News for Small Businesses

Figures released today are expected to show inflation has turned negative for the first time in 50 years. Millions of public sector workers could see pay freezes as a result. But is it possible for small business owners like you to turn deflation to your advantage?

As you may know (if you’ve been around a while), I’ve LONG argued that in hard times small businesses should stop selling to the ‘masses’ and start targeting the people affected least and last - the affluent.

A key buying criteria for affluent purchasers is price and with the right marketing and delivery, small businesses can significantly raise their prices when selling to the affluent - they can ‘forget’ deflation.

Here are two fascinating new trends among affluent buyers suggesting new sales/messages, strategies way removed from deflation:

1. Excess cash to spend - because the affluent are not investing (unable to find anything they feel good about investing in), so there is a “might as well invest in myself/hobby/passion/my trip I’ve always wanted etc. Because real investing is such a ‘no-win’ gamble” attitude.

2. Reluctance to engage in conspicuous consumption likely to appear frivolous or insensitive to the ’suffering masses’. Much of affluent buying is normally driven by ego, pride, seeking of admiration or even envy, demonstrating superiority, sophistication and wealth that, in these times, the other side of the coin is a heightened fear of and sensitivity to criticism for being profligate. This opens up opportunities to sell premium priced goods and services to them that have a “good sense factor” attached to them, to make buying “feel” responsible as well as indulgent.

For the small business positioned correctly to sell to the affluent i.e. they deliberately go ‘looking’ for them, they use marketing that resonates with them and they sell premium priced products and service they will buy.

This translates to more cash purchases, and higher spend in areas that feel reasonable, responsible and prudent such as health, preventive care and family.

SO!!!

Deflation need not affect YOU IF YOU seek out affluent buyers, higher margins and much, much less competition.

Are you doing that?

Or are you still battling with the same group of customers/clients you’ve always had.

If so, WHY?

You CAN change WHO you attract.

Hop to it!

Dedicated to your success,

Henry.

PS: If you haven’t yet grabbed you FREE GIFT and entered my INNER CIRCLE then hurry, hurry. We are bursting at the seems and I may soon have to remove the offer. Head here to grab your => FREE GIFT

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