Selling in a Recession

Marketing Challenges in 2023: Selling in a Recession

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This is the first in a three-part series highlighting the challenges facing marketers in the next 12 months. The cost of living crisis, a recession, skills shortages and a changing digital landscape is all set to make the role of the digital marketer more challenging. We’re here to offer support and advice to help you weather the storm.

Part one: selling in a recession

Whether you pay attention to the news or not, there’s no escaping the rising costs of everyday essentials. Costs are rising, and wages are struggling to keep up. Economists predict that there are tough times ahead, and this should be at the forefront of your mind as a business owner.

So what exactly does this mean for businesses? It means they have to be more creative than ever when it comes to marketing their products and services. They can’t just rely on the same old tactics that used to work. They need to find new and innovative ways to reach their target audience and convince them to buy what they’re selling. They also need to be mindful that people are going to be more careful with their money than ever before.

That’s easier said than done, of course. But it’s not impossible. There are still plenty of creative minds out there who are up for the challenge. And as the saying goes, necessity is the mother of invention. So businesses who want to stay afloat during these tough times will need to get creative and come up with some ingenious marketing strategies.

How should business owners respond?

Recession or not, people will still want what you are selling. The only difference is that now they might be a tougher sell. You’re going to have to work harder to sell the benefits of your product or service.

And remember that your competitors are in the same boat. They will also be working harder to highlight why their product or service is the superior choice. You need to know your audience inside out to be able to identify if they are looking for the cheapest option or the best value option.

There are a few key things to keep in mind when selling in a recession:

  • Stressing the value of your product or service;
  • Emphasizing the importance of quality over quantity; and
  • Being flexible with your pricing.

Value is always going to be important, but it’s especially important during a recession. Your audience is going to be looking for products and services that offer the best value for their money.

We assume that the purchase of luxury items go out of the window in a recession, but the opposite seems to be the case. When individuals have to cut back on the big ticket transactions (holidays, new cars, house improvements) the sale of small luxuries increases. This is known as the Lipstick Effect. So don’t assume there is no market for what you sell.

Emphasize quality and scarcity

When people are cutting back on spending, they want to be sure that they’re getting their money’s worth. So it’s important to stress the quality of your product or service. If you’re selling something that is mass-produced, now is the time to highlight its unique features and benefits.

If you sell services to other business owners, highlight the scarcity of your support. You can’t be everywhere and do everything, so you need to tap into the “you snooze, you lose” mentality to encourage decision-makers to bite. Flexibility with your pricing will also go a long way in helping to seal this deal. This could mean payment plans, discounts or longer payment terms.

Next month, we’ll be looking at skills shortages and how business owners can fill these gaps without overextending their budgets.