End of year consumer confidence results are starting to come in. That coupled with the frequent usage of the "R" word- Recession - suggests that small business owners need to review their promotional strategies.

According to the pundits- we have to be in recession a few months before the data suggests we are.  The jury is still out as to whether we are actually in recession but all seem to agree we are heading for one.

 I am old enough to remember the 1970s gas crisis- long lines, only being able to purchase gas every other day. Here in Philly we are paying 3.09/gallon, I can save 15 cents/gallon if I gas up across the river. We are already in gas paranoia mode- topping off- gassing up at a half tank and strategizing every trip out to maximize the gas expenditure. Rising gas prices are on our minds and people are talking about it.

According to a Nielsen Homescan Survey, because of higher gas prices consumers say they will:

Shop more at Supercenters              23% (June o7)      27% (Dec. 07)
Switch to lower price gas stations      26%                   26%
Use more coupons                           21%                   25%
Use less expensive grocery brands     19%                   23%
Use lower grade gas                         14%                    15%

Interestingly, before people make gas-related cutbacks they are willing to cut coupons and trade in their Sugar Smacks for generic puffed rice cereal.

As you plan promotional activities for the next year. Give special consideration to how you can help people practice the craft of scrapbooking less expensively.

Some ideas:

More store demos so people can see how a tool is used before they purchase it. Also demos provide inspiration for folks who can't make paid classes.

Look for promotional goods at the trade shows. You don't have to discount every product in your store if you buy a few items wisely. Use the less expensive items as bonus buys to generate store traffic from those folks who are cutting back.

Partner on promotions with other business owners - such as your local photo processor.

Review your couponing strategy. I have mixed feelings about couponing, especially when we train our customers that every week without fail they will find one 20% off coupon for a single item in their newspaper. That said- people are looking for value. What can you do? Instead of creating your own coupons, honor those of competitor stores. Use coupons as rewards for a sale,  attending events, or buying particular items.

What we shouldn't do is assume that business will be slow. It doesn't have to be. When people can't afford vacations or expensive leisure activities they look for other hobbies. Promoting scrapbooking as a hobby that gets photos out of boxes and into memory albums shows folks they can have fun while doing something productive.--Beth