Posts Tagged ‘During’

In early 2008, recession is definitely the buzzword of the day. Before we talk about how to stay afloat during a recession, let’s define what a recession is. The simple definition is this: An extended decline in general business activity. However, when you hear about a recession in the news, they are typically referring to the broader definition with reference to the country’s economy.

The National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product.

Surviving during a recession (whether it be broad-based, just in your state, city, or even company) is no easy task. Money is tight, and for most Americans, this means that before you were making it from paycheck to paycheck, but now you aren’t. That squeeze can have many effects, many of them not just financial. Stress leads to depression, which leads to decreased productivity, and the cycle continues.

The first key to surviving a recession is to realize that it will be over soon. Most recessions typically last for 6 to 18 months. This can seem like a long time during the recession, but it’s really not that long in the larger sense of things.

Here’s 5 things to do to manage during a recession:

1. Refinance your mortgage. Almost every time we are heading into a recession, or already there, the federal reserve will lower interest rates to stimulate the economy. If you’re in a high-rate mortgage, refinance now. Not only will it lower your payment, you’ll save thousands of dollars in interest over the long term.

2. If your finances are tight, resist the urge to splurge. If you don’t need it now, wait until the recession is over. You’ll thank yourself later.

3. Keep your job, or get a job! Employers feel the squeeze during these times, too, so make sure you are not a dispensable employee. Shape up if you have to, and make sure now more than ever you are doing what’s best for the company.

4. If you happen to have a little extra spending cash, now is a time for good deals. Companies need to stimulate sales, so they will be offering their best deals. Just like mortgages, if you’ve had your eye on something special (and you have the funds) now’s the time to buy.

5. Don’t stress out. If you’re struggling financially, so is almost everyone else. Just track your money closely, don’t spend more than you earn, and take extra time appreciating the things that matter most in your life.

As the US recession continues to bite businesses across the nation, some Americans are still finding there are profits to be had. Al Jazeera’s John Terrett travelled to Long Island, New York to talk to a car repair store owner about why the new US frugality – with a tendency to repair cars, not buy them – is proving good business for him.

\”Few can believe that suffering, especially by others, is in vain. Anything that is disagreeable must surely have beneficial economic effects.\” – John Kenneth Galbraith

You might think that during times of economic recession consumers are in no mood to experiment with, or purchase inventive products. Counter-intuitively, starting a business or launching an invention during a recession can be one of the smartest moves to make- depending of course, on if you take certain factors into account. Looking at past recessions and consumer psychology can give us ideas on the types of inventions that can succeed during an economic downturn.  Let’s walk through some of these themes that appear on the psychological landscape during a recession.

Nesting

Let’s start with how people are feeling during these uncertain times. Recessions can generate fear and uncertainty in the minds of people. All around, people are watching others suffer economic hardship, losing their jobs and homes. A result of this is a mindful gratitude that they are not that person they see struggling on the nightly news or in their neighborhood. An appreciation of what one already has, as opposed to what one can attain becomes paramount.

That’s why many inventions that do well during hard times have to do with comfort, organization and do-it-yourself products. Nesting relates to all things related to the home; personal possessions, making oneself more comfortable and secure, improving home environment, and making one’s life more functional. It’s also a known fact that during recessions, many people have less disposable income to spend on going out, so home entertainment and gaming items are always popular. An example of an inventive gaming product introduced during this recession is The Sega “Project Beauty” virtual reality video game (designed for Nintendo DS), which helps women try out different make-up looks via their TV screen. The Magic Fur Ball helps take care of your clothing and laundry by removing people and pet hair from fabrics in the dryer.  Lumbarwear is a soft undergarment that supports core and back strength, while providing comfort to the wearer. Tag Tamers is another product that enables comfort by relieving the itchiness of garment labels and eliminating the need to cut them out of clothing. By the way, replenishment products such as this are great for repeat sales. The stylish Shoe Seen is a transparent shoe pouch that helps people organize and store their footwear. All of these are products that satisfy that urge for nesting.

Competition- “Looking Good is Feeling Good”

People are looking to improve themselves to compete in a tougher job market.  They become acutely more aware of their own presentation and appearance, viewing the world as a more competitive, rather than friendly place.  A recent ‘Do-it-Yourself’ beauty invention that’s a hit in the market is the ZENO PRO Acne Clearing Device (uses heat to clear blemishes), which despite retailing at over $100 saves money that would otherwise be spent at the dermatologist. Another example of a grooming tool that’s time and money saving (no trips to the salon!) and makes the consumer look good is R.E.M. Spring, a battery-free facial hair remover.  Slimpressions is a shapewear product designed to slim a woman’s arms, back and midriff. These products help people look great, and also are created to deal with ongoing beauty issues.

Survivor

 Where once people saw life as a progression of economic milestones, lowering expectations during a recession to “just getting by” becomes routine.  Products that emphasize survival in the economic storm should be central in the minds of inventors. For example, Steam Buddy iron that replaces dry-cleaner wrinkle-removal (plus, you don’t have to drag out the ironing board) costs about $20, but saves the average customer  $100’s in dry cleaning bills over the course of a year. Re-usable items that replace disposables, such as Zorbeez absorbent cloths that are used in place of paper towels, will also appeal to money-strapped consumers.

Back in the 1960’s, there used to be special areas in department stores that sold “Notions” or  problem-solving personal products.  Today these types of products that emphasize personal preparation are thriving on the internet, and in mail order catalogues. Examples include Hollywood Fashion Tapes, double sided clear tape for “fashion emergencies”, and Bosom Button, a discreet jewel-like pin which allows people to wear clothes with embarrassingly low necklines, or turn scarves into skirts.

Escapism…and Hope

Recessions can cause collective anxiety and panic within the public. Thoughts of losing ones job, the home that the job pays for, and all its contents, are scary enough. It’s common knowledge that during the great depression, the movie cinemas served as a great escape for the masses.  Often those movies featured the lives of the rich and famous, in the most expensive and lavish of clothes and settings, a stark contrast to the movie-goers reality.  Bars and liquor stores also experience an uptick in clientele. What is entertainment but an escape from the mundane. Escapism is a search for hope and magic. Hope is what people need and crave most during tough times. People are looking for things to magically improve their lives. Examples of “magical” and entertaining products include the “Roomba” robotic vacuum cleaner and “Change Rocks”, the inter-changeable, multi-stone ring. Another such item is the Shower Bow Shower Curtain Expander, which creates a more luxurious bathroom experience, by creating more space in the shower. People need little extravagances as opposed to big ones.

 Tips For Inventions

Let’s look through some of the hallmarks that make for good retail inventions:

It is functional and simple to use. It makes life easier, while making the user feel better, smarter, more efficient or more attractive. It’s fun to use. It retails for $40 or less, yet has an element of magic. It saves both time and money, and is reliable, durable, safe and performs well. It is convenient to store. During a recession, other attributes of successful inventions would include items that help consumers repair/improve or re-use what they already own.

The item should be visually and tactilely appealing, have a nice shape and be made available in an attractive color, with smooth edges and an even finish. Packaging should be compact and the product name catchy and memorable; logo and graphics are clear and easy to read. Photos of product results should appear on the front of the package. Simple \’how-tos\’ should appear on the back of the package.

What Wholesale Buyers are Looking For

Most inventions are currently sold to wholesale buyers and/or sold directly to the public (through internet and TV commercials). In selling to wholesale buyers, it is critical to keep in mind their perspective. Wholesale buyers are on the lookout for something that will cut through the jungle of “stuff” already out there, that will sell itself, and is so novel it needs little to no advertising. 

In cash poor times, buyers are looking to tighten inventories by buying and stocking less, and paying less for products in order to increase profit margins, while offering value to customers.  Some of the ways to appeal to a buyer and help them market your product are:                                                                                      Source for the best pricing on materials and labor. Keep size of the product to a minimum (which takes up less space on the store shelf).  Provide alluring signage, displays and photos if the retailer permits. Offer live demonstrations and inventor \”guest\” appearances. Offer \”how-to\” videos to stores that will run them on the selling floor. Offer bonus booklets showing extra style or use options as a method of sampling or giveaways. Create special price breaks to buyers if they will \”outpost\” your product in multiple locations in a store. Provide periodic surprising new add-on products to keep the buyer interested, grow your solitary item into a full product line; and help the retailer satisfy consumers who are always looking for \”what\’s next\” (regardless of the economy.)

Why This is a Good Time for You, The Inventor

You may be unemployed, or in need of extra money. You may be scared to take that next step. You may have been waiting for the “perfect time” to launch your invention. But now is the time to put your idea into action. Now is the time to push yourself to compete, and complete your vision. Take advantage of recessionary times. If your invention is successful during a recession, it can really thrive during good times. As Frank Sinatra’s most famous song said, “If you can make it here, you can make it anywhere”, we say “If you can make it now- go for it!”

Joan Lefkowitz (who knows how to spot a retail trend when she sees one, having represented inventors through her third recession), is an original marketer of TopsyTail tm, and is president of ACCESSORY BRAINSTORMS, NYC, a licensing agency, sales representation and consultancy for Fashion and Beauty Accessory and Lifestyle Inventions. She is always looking for inventions in these categories. ACCESSORIES Magazine awarded her for the “Most Inventive Products” and also cited her as one of the 100 most important accessories industry “Movers and Shakers”. www.accessorybrainstorms.com 

Managing your finances is one of the most difficult jobs for any person. And when it comes to managing your finance during recession, you really need to take some helpful tips from a financial advisor. But this will also be a costly task as the financial advisor will also charge his fees. Here’s an outlook into the matter. As you proceed reading this article, you will be able to gather some important useful tips on how to manage your finance when you are falling into the lap of recession.

Before we start to discuss where and where not to utilize your available finance during recession, let’s get to know what a recession actually means. Reduction in an economy’s GDP or gross domestic product for a period of continuous three quarters is referred to as recession. However, NBER, National Bureau of Economic Research formally defines a recession as three consecutive quarters of falling real gross domestic product. Surviving during recession is not an easy task. Many people who were earlier making it from paycheck to paycheck are now held with no or little money. Generally, recession lasts for about 6 to 18 months. But this duration may somehow seem to be a longer one as people go on with lesser money in hand.

We present to you some helpful tips on how to manage your finance during a recession;

1. Make it a habit to check your bank account on a regular basis. Maintain a statement of coming in and going out of cash. Always try to make the payments on time as this will not increase the interest rates on them. Keep an up to date cash flow forecast.

2. Try to reduce your daily expenses as much as you can. This involves the calculation of every single penny being spent on buying the daily needs. Stick to necessities. Make a clear account of each single penny being spent. Each single penny is essential during the recession times for which you will appraise yourself later.

3. Credit cards increase debts. As long as you carry a credit card with yourself, you are sure to spend on unnecessary things which will ultimately increase your debts. So try as much possible to keep away your credit cards.

4. Avoid borrowing money from anyone. As long as you continue to borrow money, you keep yourself sinking in to the weird situation of recession. This way you can never come out of recession with a stable financial standing.

5. Continue to pay the premiums. When you continue paying the premiums, if any, you are in a way securing your money. This is because this premium amount will come back to you and that too as a huge amount. Also if you pay the premium which is going from a long time then you save those premium amounts which have already been paid in the past. And if you discontinue paying the premiums then you may lose the amount which has already been paid.

6. You should look for extra sources of income other than your ongoing one. This is how you can increase your income. No matter if extra income comes to you in smaller amounts, but do keep looking for options to generate it. For at least, something is better than nothing. Do not waste time rather spend it on earning extra for yourself. It would certainly help you in longer run.

You have to, at any cost manage your finance during recession as there is no other way getting out of it. Managing your finance and earning extra income seems to be the only mantra to keep yourself going during recession.