Recession and the Cost of Change



 “To improve is to change; to be perfect is to change often,” Winston Churchill believed.  And Charles Darwin wrote, “It is not the strongest of the species that survive, not the most intelligent, but the one most responsive to change.”
 
Change is difficult, change is necessary, and change is inevitable. Yet we still resist change. We know change is not easy, especially in this fast paced technological world we live in. Aside from the psychology of change, in business there is a practical cost to making a change. Will my new vendor deliver on time? Will they maintain their quality? Will they correct problems fast? Are they going to be in business next year? Are they going to increase prices soon after  we’ve changed all our systems? Obviously there are many more questions. The point is: for businesses, there is a real cost associated with change.
 
Like any other cost, the real cost is relative. Relative to revenues and relative to what other factors are affecting your business. The cost of change itself increases or decreases based upon different factors. This is exactly why it is important to stay visible to prospective customers all of the time. Because you never know what “event” (change) might take place that will reduce the cost of change and persuade or motivate them to request a quote from your company. For example, their current vendor might have had a price increase, poor quality issues, late deliveries, etc. Also, the prospect might be expanding their product line and needs information about products or services like yours.
 
The dual objectives of industrial and technical marketing are to [1] be in front of a prospective customer when the need arises for a product or service like yours and  [2] to have them “pre-conditioned” to think favorably about your products and services.  We can’t control when the need, or opportunity, will arise, but we can control the ability to stay in front of them and their favorable impression about our company’s products and services. The alternative marketing tactics are varied: telephone contact, e-mail contact, online advertising, print advertising, trade show exhibits, product publicity, etc. 
 
So, what does the recession have to do with change? 
 
Tough economic times magnify everything. Businesses often do things during a recession based upon fear, rather than fact. Yes, it is scary to watch your sales decrease by 20, 30 or 40 percent. But, a recession is the time businesses must be the most visible to their prospective customers and, unfortunately, it is the time many go into a shell to try and save money. As they say, “a turtle only makes progress when he sticks his neck out.”
 
The fact is, during a recession, businesses are much more receptive to change. They have to be. Often, purchasing agents and design engineers are mandated to get competitive quotes for products, components and services that were “sacrosanct” a year ago. Because of this “receptive environment,” a recession is an opportunity to grow your business and to add new customers. Unless you are the dominant player in your marketplace, you have an opportunity to “steal” market share and grow during these tough economic times. You may not increase profits in the short term, but you won’t watch your sales drop precipitously either.
 
Like the falling price of stocks in the Dow Jones Industrial Average, the cost of change also decreases during a recession. The most cost-effective way to stay visible is through a well-planned product publicity program. One which depicts the features, benefits and applications of your products in an interesting way so that editors and web hosts will choose to publish them in their magazines and on their web sites as valuable content for their readers. When they do publish, the news coverage alone enhances the credibility of your “message” because a third party is presenting your news to their readership.
 
As President John F. Kennedy said, “Change is the law of life. And those who look only to the past or present are certain to miss the future.”  Today, survival during this recession forces you change and to look different ways to attract new business.  Trying something new or different when business is good can be too costly. However, the companies who succeed and grow are the ones who recognize that a recession is a terrific opportunity to meet new customers and expand your client base. Your profit margins may decrease because of the downside pressure on prices, but they’ll return when the economy improves… and the cost of change increases.
 
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Steven M. Stroum is the founder and president of Venmark International, an industrial and technical product publicity firm located in Wellesley, Massachusetts. He was appointed one of 18 Small Business Advisors to the Governor of Massachusetts, toured South Korea as an Ambassador for the International Rotary Foundation, was a member of the Norbert Weiner Forum at Tufts University to study the impact of technology on society, and was listed in "Who's Who in the East." www.venmarkinternational.com
 
 
For more information contact:
 
Venmark International
Steven M. Stroum, President
148 Linden St., Suite 105
Wellesley, MA 02482
781-237-5860 FAX 781-237-5862


© Copyright 2009- Steven M. Stroum