IN THE TRENCHES: Focus on your strengths for success in 2009
IN THE TRENCHES: Focus on your strengths for success in 2009
I don't know about you, but at home I have been experiencing phone call after phone call from insurance agencies, department stores, home improvement centers, telephone companies, banks and even window washers trying to sell me something new or convince me to upgrade what I already have.
Additionally, I am receiving loads of coupons in the mail from restaurants vying for my patronage. It's all part of "emergency marketing" as companies solicit for business in a slumping economy.
Everyone is getting weary of the same news every day on the radio, television and in the newspapers about the unstable economy. People see depressing economic headlines in the newspaper at the breakfast table, hear about it on the radio while driving to work, discuss it in meetings at the office, and watch it again on the TV news programs at dinner. This has everyone bracing for an unstable 2009.
There is no question that we are in a recession. But we've worked our way out of these slumps before, and it's no different this time around. Besides, recessions always come to an end. In the meantime, we'll just have to work harder to get ourselves through 2009.
Have consumers cut back totally? Have people just stopped spending money altogether? Have they stop eating? No, they didn't. One of the industries that I've been examining is professional sports. If you take a look at the attendance noted in the box score of each professional sports game, you may be surprised. I did some research on it and found that when it comes to professional sports, people suddenly have a lot of money to spend.
The average attendance for a National Football League game is 67,738; Major League Baseball draws an average of 32,539; the National Basketball Association sees 17,394 per contest; and the National Hockey League has 17,265. The average per-game ticket price for the NFL is $72.20; MLB, $25.40; the NBA, $49.47; and the NHL, $49.66. For a family of four to attend a National Football League game, it would cost $288.80 for tickets alone. The concessions add a hefty sum on top of that.
Even in Detroit, where most recent headlines have to do with high unemployment and the bailout sought by the Big Three automobile manufacturers, the average attendance for a Detroit Pistons basketball game is 22,076, while the NHL's Detroit Red Wings draw an average of 18,870 spectators. That's a lot of people spending a lot of money. Many sports franchises are even setting attendance records during these very tough times. Economists say nothing is "recession-proof." Or is it?
As far back in history as 1797, the United States has had a number of struggles with recessions and other economic crises. However, through the positive efforts of careful management and hard-working people, we have been able to weather these trying times.
One positive area for a start in 2009 is oil prices, which have dropped dramatically. This will save millions of dollars in energy costs up and down the line for companies and consumers. Shoppers will be able to buy cheaper gasoline and drive more often to and from supermarkets, hopefully to make additional purchases. Even restaurants will enjoy some stronger business as a result of lower oil prices.
Whether you're a grower, shipper, wholesaler, distributor or retailer, don't give in to what may seem like a never-ending problem. Stay with a positive objective to create new business sales by doing what works best for your operation. If growing and shipping specific key products works for you, then continue to do so. If merchandising and promoting the top-selling items generate high volume at the retail level, redouble those efforts. Concentrate on all your strongest sectors the most, and it will pay off for your company.
Stick to your plan in an aggressive way. Stick to the practices that made your company successful for so many years. During the darkest days of a critical economic situation, many individuals and companies tend to pamper operations by retreating from the front lines. Instead, forge ahead and think big. There are too many potential sales opportunities to cut back now.
I look for an economic bounce to occur sometime in the latter part of 2009. At least I'm hoping it will refresh itself a tad and finally start moving in an upward direction by then. Of course, this is only my positive point of view.
During this period, retailers are negotiating more than ever with growers and shippers. At the consumer level, shoppers are hunting for the best bargains in the stores and demanding more value for their hard-earned money. Consumers are dictating the overall buying power, and they will go door to door until they find it. Low price will rule for the time being. So, get used to it and customize your business based on this present-day fact.
Just as professional baseball survived world wars and the Great Depression, the food industry can survive a recession just as well. The nation may still be clashing with a period of hard times in 2009, but there are many positive opportunities that lay within our industry circle. We just have to climb out from beneath the economic negativity and pessimism by being exceptional ballplayers.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power- produce.com.)
Additionally, I am receiving loads of coupons in the mail from restaurants vying for my patronage. It's all part of "emergency marketing" as companies solicit for business in a slumping economy.
Everyone is getting weary of the same news every day on the radio, television and in the newspapers about the unstable economy. People see depressing economic headlines in the newspaper at the breakfast table, hear about it on the radio while driving to work, discuss it in meetings at the office, and watch it again on the TV news programs at dinner. This has everyone bracing for an unstable 2009.
There is no question that we are in a recession. But we've worked our way out of these slumps before, and it's no different this time around. Besides, recessions always come to an end. In the meantime, we'll just have to work harder to get ourselves through 2009.
Have consumers cut back totally? Have people just stopped spending money altogether? Have they stop eating? No, they didn't. One of the industries that I've been examining is professional sports. If you take a look at the attendance noted in the box score of each professional sports game, you may be surprised. I did some research on it and found that when it comes to professional sports, people suddenly have a lot of money to spend.
The average attendance for a National Football League game is 67,738; Major League Baseball draws an average of 32,539; the National Basketball Association sees 17,394 per contest; and the National Hockey League has 17,265. The average per-game ticket price for the NFL is $72.20; MLB, $25.40; the NBA, $49.47; and the NHL, $49.66. For a family of four to attend a National Football League game, it would cost $288.80 for tickets alone. The concessions add a hefty sum on top of that.
Even in Detroit, where most recent headlines have to do with high unemployment and the bailout sought by the Big Three automobile manufacturers, the average attendance for a Detroit Pistons basketball game is 22,076, while the NHL's Detroit Red Wings draw an average of 18,870 spectators. That's a lot of people spending a lot of money. Many sports franchises are even setting attendance records during these very tough times. Economists say nothing is "recession-proof." Or is it?
As far back in history as 1797, the United States has had a number of struggles with recessions and other economic crises. However, through the positive efforts of careful management and hard-working people, we have been able to weather these trying times.
One positive area for a start in 2009 is oil prices, which have dropped dramatically. This will save millions of dollars in energy costs up and down the line for companies and consumers. Shoppers will be able to buy cheaper gasoline and drive more often to and from supermarkets, hopefully to make additional purchases. Even restaurants will enjoy some stronger business as a result of lower oil prices.
Whether you're a grower, shipper, wholesaler, distributor or retailer, don't give in to what may seem like a never-ending problem. Stay with a positive objective to create new business sales by doing what works best for your operation. If growing and shipping specific key products works for you, then continue to do so. If merchandising and promoting the top-selling items generate high volume at the retail level, redouble those efforts. Concentrate on all your strongest sectors the most, and it will pay off for your company.
Stick to your plan in an aggressive way. Stick to the practices that made your company successful for so many years. During the darkest days of a critical economic situation, many individuals and companies tend to pamper operations by retreating from the front lines. Instead, forge ahead and think big. There are too many potential sales opportunities to cut back now.
I look for an economic bounce to occur sometime in the latter part of 2009. At least I'm hoping it will refresh itself a tad and finally start moving in an upward direction by then. Of course, this is only my positive point of view.
During this period, retailers are negotiating more than ever with growers and shippers. At the consumer level, shoppers are hunting for the best bargains in the stores and demanding more value for their hard-earned money. Consumers are dictating the overall buying power, and they will go door to door until they find it. Low price will rule for the time being. So, get used to it and customize your business based on this present-day fact.
Just as professional baseball survived world wars and the Great Depression, the food industry can survive a recession just as well. The nation may still be clashing with a period of hard times in 2009, but there are many positive opportunities that lay within our industry circle. We just have to climb out from beneath the economic negativity and pessimism by being exceptional ballplayers.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power- produce.com.)
