Last year, around about October, we suffered from a drop in sales. It seems that business was pretty bad all around the place and everyone was holding off on their new websites and SEO. Nobody wanted to risk any money on anything as ‘cutting edge' as a new website – no sir.
Then the new year came and it kinda picked up a bit. It hasn't been a great year, but it's better been than last and things are looking pretty healthy. Then this credit crunch hit the news. I say ‘then' it hit the news because up until recently when the banks all went fubar and the FTSE dive-bombed, nobody seemed to have noticed that the British economy was taking a turn for the worse.
We've been in a downturn for ages though. I mean it, absolutely ages and nobody has noticed. Even the FTSE has been declining, look:
That's a graph of the FTSE 100 from October last year. Pretty steady decline, i.e. something's up. Share prices go up, on average and so a downward slide is a ‘bad thing'. This is where business suffers as it's due to a bunch of crappy profit figures and trade announcements that tends to send the prices down.
But no, until recently the only affected industry was property and building services and then suddenly it's all over and we're in recession. But are we?
There's absolutely no doubt that there's a lot of trouble in the business world and people are definitley holding on to their cash more – but is that due to significant problems in the economy or are we all just panicking because we're told to?
Yes, prices have gone up because of fuel cost, but fuel has recently come down as it appears that most of the price hikes were simply due to speculation by traders (indeed, demand dropped significantly).
So what else has happened? Nothing from what I can see. Everyone is tightening their belts though and marketing spend is down because people want to cut costs. However this is exactly the time to increase spend on advertising and marketing.
You see, with the herd mentality, everyone is holding back meaning your marketing budget goes even further. You can bet that your competitors are all thinking the same, especially the Daily Mail readership who live their life by every terrifying headline.
As Warren Buffet said : “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
At the moment, everyone is fearful….so be greedy my friend, be greedy…