Sales- A Bad Economy May Not Be The Problem

Do you think the economy has your handmade sales business in a slump?  You aren’t alone.  Many online sellers are pointing to the economy for any slow days they are having.

But is the blame really on the economy?

So who is saying the economy is their biggest obstacle?  According to Barry A. Densa, one of America’s top freelance Marketing and Sales Copywriters, it’s a specific type of business owner.  “During the long-gone good-times, your business had been on cruise control and you got complacent,” he says.  “You saw your customers as dollar signs and not people.”

“Wow, I’m guilty of blaming my current lack of business on everything but me,” one seller in the Etsy.com forums said.  “I do need a kick in the pants, because I do really good work.”

Densa says from relationship building, caring about your customers, just staying in business, or even making a great income and taking extra vacations, there are easy ways to keep your small business recession-proof.  For him, it’s all about keeping your potential buyers loyal and their wallets open.

So is it all about reducing prices to help struggling handmade shoppers?  Densa thinks reducing prices won’t help in the long run.  “Reducing your prices may help and may even be prudent,” he writes.  “But that’s a short-term fix.  In fact, by reducing your prices, what you’re doing is training, even forcing, your customers to price shop.”  He suggests sellers accent the value in the products.  That way, the customer is willing to pay the price for the value.

Still, some Etsy sellers look to aggressive promotions to boost sales.  “I agree it’s all about visibility and offering good products,” says one Etsy.com seller in the Etsy forums.  “Women still bought jewelry during the great depression and ww2 so this recession isn’t any worse. I saw on the news that online sites are actually increasing in sales because of the aggressive promotions and people just want to save on gas. I think it’s a good time to seize the chance! On a side note I’ve planned that my vintage jewelry venture is going to expand this year, as sales are steady. So it’s not really the economy!!”

Densa says your goal as an online seller is to help your potential customers through their economic fears.  “They’re holding on to their money,” Densa writes, “worried the good times will never return.  Your job then is to lift their heads.  Help them understand that change is the only constant in life-and this economic melt-down, this too shall pass.”

Your best bet as an online handmade seller is to be sure you can put yourself in the customer’s shoes.  Rather than deny the reality your customers perceive Densa suggests you place yourself on their side.  “Recognize that the quickest way to bond and, most importantly, become an advocate on behalf of your customers is to first accept and validate (within reasonable limits) their viewpoint,” he writes. “Once you’ve shown them you understand and agree with them, you’ll find it so much easier to persuade them of your viewpoint.”

Densa suggests brainstroming to determine the potential buyer’s greatest obstacle.  Maybe a customer would rather head to the local big box rather than pay for shipping.  Consider cutting or eliminating your shipping costs for your Etsy, ArtFire, or 1000 Markets store.  If you get a sense that your potential customer are nervous about value, try running a two-for-one promotion to see if that eliminates the obstacle.  Each market will have their own obstacles – take the time to determine your market’s barrier to buy.

In the end, Densa says to try these tips with style, grace, truth, and honesty.  In turn, “your business will thrive in any economy,” he writes.

How do you keep business booming in a tough economy?  What role does the bad economy play in your sales online?  Have you seen sales slow or grow lately?