“Today, The Stock Market Plummeted By 777 Points. What If This Continues? What If Customers Stop Buying?”

I don’’t think it will happen, but I keep getting worried E-Mails asking what to do as the economy slows down.

Frankly, our store has felt the crunch a tad too. Our sales last month (Aug.) were down from the August last year by a few points…..

Although still three times what it was three years ago….so I can’t really complain. And I’m spending only a couple of hours a day in the store...so I really can’’t complain.

But…..

Some Gold Members have said that their ads are pulling less than normal. Some say they are doing better.

Let’s pretend for a minute that you happen to be in an area that is affected strongly by the economy. Let’s say that your ads aren’t pulling like they used to.

And let’s ignore the fact that you could easily improve your ad response by creating better ads and better offers.

What guaranteed profitable methods could you use to generate profit from your store even in the worst economy?

I would absolutely concentrate on my list of people who have already bought from me. I would just use the names of people who bought high end profitable stuff.

Then I would go to www.postcardmania.com and buy postcard to mail a great offer to your customer list. Don’t mail the postcard to everyone in your area...just your established customers.

Make them an offer for something they didn’t already buy. But make the price in the range of what they already paid.

For example; if they bought a vacuum cleaner from you a year ago...don’t send them an offer for another vacuum cleaner. Send an offer for another item...at about the same price.

Here’s another offer. Just send them a Gift Certificate...with no strings attached ...for $20.

We’ve done that, and it’s the single most profitable mailing we’ve ever done. How profitable? We sent 670 postcards to high end vacuum cleaner buyers...with $20 Gift Certificates on the postcard.

127 people brought the gift certificates in. 83 people bought something for less than $50. Most of them tried to stay less than $30. But remember, $20 at retail (in our store anyway) is only about $8 wholesale.

And 44 people bought either a high end heater (for $495-$595) or an air purifier (for $495) or a high end vacuum cleaner (if that’s not what they bought before).

It took six weeks to gather these sales. $13,300 in net profit from a mailing cost of less than $300.

But you can’t make the gift certificates conditional (or they are just coupons) and don’t send them to everyone (or you will be drowning in freebie seekers).

The next thing I would concentrate on is signage. Does your sign say what you sell? Can drivers easily...easily see it from the road...without craning their necks? Great signage is one of the most powerful, and least expensive (over a few years) advertising methods available.

The I would go to www.storesupply.com or www.nebs.com and buy some “SALE” banners, streamers, and signs. For a couple of hundred dollars, you can make your store...inside and out...look like you are really having an event.

And last, but not least, I’d get on the phone….you heard me right...and call your high end customers. You do it, don’t delegate this. Last month, I called a few customers and made a ton of money. This month I called 4 customers….3 came in….and all three bought a high end vacuum cleaner.

Why did I call only four?

Like most, I’m lazy, I knew it would take less than half an hour, and I was just doing it to prove something to myself...and now to you.

Believe me, nobody gets upset when you call them, as long as they are your customer.

Next October 2008