Thursday, March 19, 2009

Recession pricing from the other side of the coin…

My 30 minutes of CNN each morning is not exactly a calming start to the day. The high-pitched, almost hysterical reporting - with edgy rock music at the beginning and end of each segment (remember when CNN did the news?) screams that there is an ugly recession about us and it appears that the sky truly is falling. To make us feel better though, the trusty CNN reporters tell us about all of the great deals around – on everything from our morning lattes to condos in South Beach. And, we’re told, we should feel free to demand the bargains from any company lucky enough to have our business in these uncertain times.

As a consumer, this certainly resonates. And we want our customers to continue to feel comfortable shopping with us. Here at Admiral Road we offer regular discounts to our customers as a part of our newsletters and Facebook pages and we have extra recession-busting coupons lined up for our Facebook group members.

I am however, a little worried about that guy making your morning latte. Odds are he hasn’t experienced any significant drop in his costs. And it follows that if the economy is sluggish, he’s probably selling fewer of those lattes to start with. Has his rent plummeted to meet the struggling economy? Of course not. So now, Mr. Latte Maker is making less money and is being asked for discounts left, right and center. What’s a guy to do? Hopefully he’s got the same kind of great, loyal customers as we do. But I’ve got a sinking feeling that he’s going to be discounting himself all the way to the poorhouse.

Admiral Road has been making personalized blankets since 2002.

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