By consolidating operations and removing unused equipment, you may find that much of the space you thought you had to have was simply draining the bottom line. Now is the time to be prudently aggressive in the marketplace. Actively seek out new business, and perhaps add a salesperson or two or an extra service to give you an edge over competition. Similarly, don't skimp on service and quality by being understaffed. One advantage of a slowdown is that hiring gets easier because there are more candidates from which to choose due to layoffs and other cutbacks.
Studies show that perception of service is fixed primarily in terms of time in a customer's mind.
In banks or stores, or phoning in orders or for in- formation, prospective customers will walk out or hang up if their time perception is strained. According to management consultant Donald Blumberg, author of Managing Service as a Stra- tegic Profit Center, customers will temper their time demands when they see store employees busy helping other customers. But they will not be so tolerant when clerks are chatting with one another or on the phone while waiting customers are ignored. An informal, friendly attitude by owner-managers is key to a happy workplace, with emphasis clearly placed on the important role all employees play in meeting customer needs for attentive, timely service. Historically, many businesses reduce adver- tising and promotional expenditures rather than slash fixed costs during hard times.