Tire dealers have a weapon
to fight the sluggish economy that their bigger competitors don't: their size.
With fewer employees and layers of management, smaller companies can adjust
faster to economic conditions.
Small businesses that are
succeeding view the current recession as an opportunity. There's more time to
focus on existing customers, explore innovative ways to improve your company,
and catch up on all the maintenance issues you put off when times were
crazy-busy.
Here are the top strategies
small businesses are using to battle in today's tough climate:
1. Diversify –
Diversification of products or services gives you more stability, because a
down market in one product can be compensated for by another. Look at new
products or services that can reap instant profit benefits and become a
long-term part of your game plan.
2. Get referrals – Ask your
current customers for leads. This should be a natural outgrowth of staying
close to your customers. Don’t be embarrassed or hesitant about asking them to
refer others to you. Going to your present clientele is the best business
development tool you have.
3. Connect – Staying close
to your current customers should be your top priority. Experts say that it
costs five times more to get a new customer than to retain one. And research
shows that loyal customers buy more and are less likely to defect. New business
is always good and may seem the way to survive, but increasing customer loyalty
will drive long-term profitability.
4. Retain employees – Don't
automatically turn to layoffs when times get tough. Consider pay cuts, reduced
hours or revised incentive pay plans. Retaining good employees will strengthen
their loyalties. And when the economy turns, they'll be more likely to stick
with you, rather than jumping ship.
5. Spend on advertising –
Seems counterintuitive when budgets need trimming, but getting your name in
front of tire and service buyers is crucial to retaining customers and gaining
new ones. Keep in mind that in tough times, fewer companies are advertising and
you can most likely negotiate better pricing and positioning. And if your
competition has cut back, your ads will carry more weight.
- Source: Tire Review
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