What do people buy during a recession

Feb 23, 2009 by Paul White

Or a better question for sales reps, "Who is still buying advertising during a recession?".  Its no rumor that companies have drastically reduced their advertising budgets.  Many publishers had the auto industry as their meat and potatoes, but now with the domestic companies sitting in deep hole, there isn't a lot of money going around. 

One lesson that the science world has taught us is that energy is not created, or destroyed. It is simply converted and displaced from one form into another.  Money is very similar.  There is essentially the same amount of money in the economy as before.  But because the lack of credit available, people have stopped spending.  Or have they?  The truth is most households are making the same amount they were before the recession.  The news media likes to focus on that small demographic that is suffering.  The focus on the few has caused uncertainty for many.

Products and Services that appeal to people during a recession

Dept Refinance Companies
With credit card companies charging 20%+ interest on credit card balances, many are struggling to make the mininum payments.  These companies can consolidate credit card debt into a payments at a much lower interest rate.

Cheaper Car Insurance
Everyone likes to save money.  Car insurance is one place that many can easily save 100s.  I saved over $50 / month just by switching from Farmers to Gieco.  Try selling some advertising to you local agents, or even some national accounts ( Gieco ) if you can.

Cheaper Electricity Providers
This may vary where you live but in Texas the biggest providers ( Reliant ) are also some of the most expensive.  We recently dropped our electricity rate from 17.8 cents/KWH to 12.5 cents/KWH  just by switching providers and signing a 1 year contract.  Many of these companies are small affiliate based companies, and these affiliates may be good radio advertising candidates.

Preforeclosure Negotiators
These are people that help home owners stop foreclosure.  They basically setup a shortsale with the banks to save the homeowners credit and get the house on the market at a price that will sell.  In Houston ( Harris County) we have over 3000 foreclosures each month.  Each of these home owners could benefit from hiring a negotiator.  Google for Shortsale in your area to find local companies that provide this service.  These companies do very well during a recession and are always looking for ways to reach these home owners.

Military Recruiters.
The war on terrorism is not over yet.  Unemployment is going alot higher, and that means there will be lots of unemployed young men looking for purpose.  Contact the local Recruiters and see if they want to advertise.

Rehab Centers
When times get tough, many people turn to liquor and drugs as a way of coping.  One client of mine who also is involved with law enforcement, told me that drug trafficking has grown alot in the past few months.  With this increase in drugs and crime will come the addicts who can't break the addiction.  Rehab Centers want to find these addicts and help them.  Radio might be a good way to reaching them.

Temp Agencies
Many are and will becoming unemployed in the next few years.  Temp Agencies help match workers with jobs.  They are always looking for more workers to fit specific skill sets.

Taco Bell
Only reason I say this is because for the last few nights, My wife and I have had a craving for Taco Bell.  When we get there its packed.  20+ cars in the drive through.  Might want to contact Pepsi ( Owner of Taco Bell ) about some advertising.  Coke is loosing market share, while Pepsi seems to be having a growth spurt, especially in its Taco Bell Chains.  Hint: Advertise to them during the late night hours.  When people are hungry but too lazy to prepare a meal.

Gamers Stores
Since it costs too much to go to a movie, or dinner.  Many Single Males ( usually living in their mom's basement ) have a complete addiction to video games.  Video Game rentals and subscription plans can be a very lucrative business.  Plus there are many startup gamer stores that are dying to reach consumers.  Radio would be a great way from them to reach consumers.

There are many other companies that will have increased demand during a recession.  Advertising for some of these companies might have been out of reach or demand was too low to make radio advertising beneficial.  But with a projected 12% unemployment rate by years end, demand for these company's products and services will be higher than normal, making them good prospects for Advertising.
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