In the short run consumers may not buy certain goods or services because they are fearful and think they shouldn't spend money right now. But, as is the case with tobacco products, hard liquor and to some extent red meat, many consumers avoid those products, not for any monetary reason, but because of a permanent change in what those consumers value. When forecasting sales the basics are the same regardless of the economic circumstances. It's a matter of estimating how many potential customers are in your market area and then making a determination of how much each one of them is going to spend on what you offer. The part that requires some work is forecasting how the number of potential customers might change and then determining if their purchasing behavior will also change.
Difficult times make it hard to focus on the fundamentals.
But when this unfortunate period is behind us the businesses that recover the best will be those who maintain good customer relationships and adapt to long-term changes in consumer preferences. Peter Francese, who writes weekly on marketing matters for Cape Cod Times online, has more than 30 years of experience consulting, writing and speaking about consumer marketing and demographic trends. Cape Cod Times. All rights reserved.