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Shane O’Neill: Your Business, the Stock Market, and Your Future

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Are you ready to thrive if the economy starts to struggle?

The 2008 financial crisis was an event we could all do without again. Some businesses never made it out alive and others are still recovering. Proceeding with caution, preserving capital and waiting it out were the prevailing attitudes. The first thing to get cut was marketing, yet that knee-jerk reaction, in most cases, only amplified the situation. However, there were others who saw the financial crisis as an opportunity and seized it, but not without careful planning and foresight.

Your business is like the stock market

Just like the stock market, the economy has its ups and downs too. In fact, they’re tied together. Stocks go down, people lose money, people get worried, people spend less. That’s common knowledge. There is also a common saying of “Buy when there’s blood in the water.” That is to say, when everyone else is selling, you should be buying. It takes guts, but if you had the fortitude to buy up to the March 9, 2009 market bottom, well… you probably made some serious cash. Everyone else was selling as, each day, the market fell hundreds of points, racking up huge loses. People kept seeing their losses mount -30%, -50%, -70%, or more. At some point, they cracked. They couldn’t take it any longer… they sold. And yet there was a buyer who saw an opportunity and seized it.

The jewelry business saw the same type of decimation. Sales plummeted, jewelers lost money, jewelers got worried, jewelers stopped marketing. Blood in the water. However, there were also small bands of enlightened jewelers who saw an opportunity. Opportunity to seize market share. While everyone else cut marketing spends, these jewelers stayed the course and some increased their marketing spend, determined to own the market when the dust settled.

Seems to me there’s a storm brewing.

There haven’t been any raindrops yet, but there are some clouds starting to form. December was flat to down for most independents and for some higher end jewelers, those bigger ticket sales just weren’t there. Those Boomer customers are transitioning into retirement and the stock market is not throwing off positive vibes. All of this can make a business owner more than a little nervous. And so the cycle begins.

While the writing on the wall is certainly not set in stone, it does look like 2016 will be a challenging year. The question is; what’s your plan? Are you going to cut your marketing and wait it out? That’s not really a plan. What’s your market look like? What position is your store in that market? What are your competitors doing? How are your sales trending? Are you in a position to attack, or are you the prey?

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It’s time to get your house in order, get your marketing right and get ready to pounce. I smell blood in the water, but it’s not mine… I always liked storms.


Shane O’Neill is the vice-president of Fruchtman Marketing (www.fruchtman.com) and can be reached at shane@fruchtman.com.

This article originally appeared in the April 2016 edition of INSTORE.

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You Wouldn’t Cut Your Own Hair. Why Run Your Own Retirement Sale?

After being in business for over a quarter of a century, Wayne Reid, owner of Wayne Jewelers in Wayne, Pennsylvania, decided it was time for a little “me time.” He says, “I’ve reached a point in my life where it’s time to slow down, enjoy a lot of things outside of the jewelry industry. It just seemed to be the right time.” He chose Wilkerson to handle his retirement sale because of their reputation and results. With financial goals exceeded, Reid says he made the right choice selecting Wilkerson to handle the sale. “They made every effort to push our jewelry to the forefront of the showcases,” he says, lauding Wilkerson for their finesse and expertise. Would he recommend them to other jewelers who want to make room for new merchandise, expand their business or like him, decide to call it a day? Absolutely he says, equating trying to do this kind of sale with cutting your own hair. “The results are going to happen but not as well as if you have a professional like Wilkerson do the job for you.”

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Shane O’Neill: Your Business, the Stock Market, and Your Future

mm

Published

on

Are you ready to thrive if the economy starts to struggle?

The 2008 financial crisis was an event we could all do without again. Some businesses never made it out alive and others are still recovering. Proceeding with caution, preserving capital and waiting it out were the prevailing attitudes. The first thing to get cut was marketing, yet that knee-jerk reaction, in most cases, only amplified the situation. However, there were others who saw the financial crisis as an opportunity and seized it, but not without careful planning and foresight.

Your business is like the stock market

Just like the stock market, the economy has its ups and downs too. In fact, they’re tied together. Stocks go down, people lose money, people get worried, people spend less. That’s common knowledge. There is also a common saying of “Buy when there’s blood in the water.” That is to say, when everyone else is selling, you should be buying. It takes guts, but if you had the fortitude to buy up to the March 9, 2009 market bottom, well… you probably made some serious cash. Everyone else was selling as, each day, the market fell hundreds of points, racking up huge loses. People kept seeing their losses mount -30%, -50%, -70%, or more. At some point, they cracked. They couldn’t take it any longer… they sold. And yet there was a buyer who saw an opportunity and seized it.

The jewelry business saw the same type of decimation. Sales plummeted, jewelers lost money, jewelers got worried, jewelers stopped marketing. Blood in the water. However, there were also small bands of enlightened jewelers who saw an opportunity. Opportunity to seize market share. While everyone else cut marketing spends, these jewelers stayed the course and some increased their marketing spend, determined to own the market when the dust settled.

Seems to me there’s a storm brewing.

There haven’t been any raindrops yet, but there are some clouds starting to form. December was flat to down for most independents and for some higher end jewelers, those bigger ticket sales just weren’t there. Those Boomer customers are transitioning into retirement and the stock market is not throwing off positive vibes. All of this can make a business owner more than a little nervous. And so the cycle begins.

Advertisement

While the writing on the wall is certainly not set in stone, it does look like 2016 will be a challenging year. The question is; what’s your plan? Are you going to cut your marketing and wait it out? That’s not really a plan. What’s your market look like? What position is your store in that market? What are your competitors doing? How are your sales trending? Are you in a position to attack, or are you the prey?

It’s time to get your house in order, get your marketing right and get ready to pounce. I smell blood in the water, but it’s not mine… I always liked storms.


Shane O’Neill is the vice-president of Fruchtman Marketing (www.fruchtman.com) and can be reached at shane@fruchtman.com.

This article originally appeared in the April 2016 edition of INSTORE.

Advertisement

SPONSORED VIDEO

You Wouldn’t Cut Your Own Hair. Why Run Your Own Retirement Sale?

After being in business for over a quarter of a century, Wayne Reid, owner of Wayne Jewelers in Wayne, Pennsylvania, decided it was time for a little “me time.” He says, “I’ve reached a point in my life where it’s time to slow down, enjoy a lot of things outside of the jewelry industry. It just seemed to be the right time.” He chose Wilkerson to handle his retirement sale because of their reputation and results. With financial goals exceeded, Reid says he made the right choice selecting Wilkerson to handle the sale. “They made every effort to push our jewelry to the forefront of the showcases,” he says, lauding Wilkerson for their finesse and expertise. Would he recommend them to other jewelers who want to make room for new merchandise, expand their business or like him, decide to call it a day? Absolutely he says, equating trying to do this kind of sale with cutting your own hair. “The results are going to happen but not as well as if you have a professional like Wilkerson do the job for you.”

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