Is the Recession Impacting Small Business Sales and Consumer Spending Habits?

[krzymomof4]

I have had real trouble with sales lately. I touched base with a catalog show host who was set to close this week. We are going to have to keep it open longer because everyone she asks say they are spending their money on gas and groceries. I told her we could hold it open and maybe some people will want to blow a bit of their tax money. This is so frustrating. I am having an easier time getting people to host because they want discount and free, but they are in turn having trouble getting sales.

 

[katie0128]

I know your pain! I have a potential host (who is also a friend) who said she didn't want to have a Show because no one would come because none of her friends have any extra $$. So then I get an invite from her to a CAbi party next week. WHAT???? As if CAbi clothes are less expensive than PC stuff!!! I was sooo mad. Fortunately, I have a Cub Scout meeting that same night, so I have a good excuse not to go.

 

[SusanBP0129]

Just got this from my upline and it's SO TRUE!

Use the recession to work on recruiting!

With the price of gas and many basic food items going up, many people are finding it difficult to make ends meet. Add on the fact that many people with adjustable mortgages have found themselves struggling to make the increased payments and you have a situation where many are looking for a part time job just to get by.

Secondly, one of the things that falls by the wayside in a down economy is elective spending such as eating out. A front page article of the Money section in one of last week's editions of USA Today, talked about the fact that many restaurant chains, Chili's, Cheesecake Factory, Applebee's and even Starbucks, have reported substantially lower numbers for 2008 so far. Of course, families still need to eat so that means that these families are eating at home. And when families eat at home more often, they are more interested in and more willing to spend money on the tools necessary to prepare those meals.

Makes sense to me!

 

[krzymomof4]

We live in the same part, don't ya just love the Ohio Valley!!. I am having trouble encouraging my hosts to try harder, etc. My friend sells Premier and she is having the same trouble.

 

[katie0128]

And when families eat at home more often, they are more interested in and more willing to spend money on the tools necessary to prepare those meals.

My problem is that these same families, while eating at home to save money, aren't always willing to make purchases because they see many PC items as "extras" and not necessities.

 

[katie0128]

We live in the same part, don't ya just love the Ohio Valley!!. I am having trouble encouraging my hosts to try harder, etc. My friend sells Premier and she is having the same trouble.

Remind me again (the brain cell is sleeping) where you live in IN? I'm in the southwest part of Cincinnati - about 20 minutes east of Lawrenceburg.

 

[SusanBP0129]

My problem is that these same families, while eating at home to save money, aren't always willing to make purchases because they see many PC items as "extras" and not necessities.

That is VERY true. But it still puts us in a better position than those selling jewelry or other true luxuries. KWIM?

 

[ChefBeckyD]

I would have to say that, yes, my sales are a bit lower because of the economy - and I live in the state with the highest unemployment and worst economic forecast in the nation....and with current UAW strikes in our area, it's only getting worse.

However, I have found that people are really responding to shows which show them how to make quick, easy, inexpensive meals at home - I think that is one reason I have had so much success with the 30 Minute Chicken! I have been focusing on tools & products that will help them in the kitchen, and it seems to be working well. I am not selling a bunch of SA right now - that is considered a luxury - but I am selling stoneware, cookware, and lots of tools! Hey, if it takes selling a mix n chop and a spice rub to everyone at the show to keep me in business, then I am all for it! I'm also finding that people are looking at spending a lot of time hanging around their own backyards this summer, so all of the great new summer products seem to be selling well too.
Bookings are up - I am busier now than I have ever been, and my bookings are looking good into June - so don't give up! Promote shows and products that speak to people and their wallets ~ and we can ride out this recession!

I truly believe that PC is the one Home Party Plan that is probably Recession Proof - we offer not just luxury items, but products that need to be used every day! We also offer a fun, interactive night out - where guests can learn, hang out and chat, and get some great cooking ideas - A PC party is actually cheap fun for the host and guests!

 

[Intrepid_Chef]

Sue, I love your words of wisdom from your upline!

I have ALWAYS said that these products save people money, because they get people excited about cooking!

 

[Stephaniecafe]

I think what you all are saying is true, times are tough for a lot of people. Have you tried to bring up that the power cooking show is a great way to save money along with not eating out because it will show how to save money on prepared meals? Every dollar counts... a penny saved is a penny an a half earned after taxes!

 

[katie0128]

I completely agree with all of you... I'm just in a cranky mood because one of my co-workers is screwing things up for a meeting I need to get scheduled. Any other day, I'd be more positive about it, but not today, not now. I really need to get my PC business going so I can quit this job. I really love it, even with my odd-ball co-workers, I really do love this place and would miss it terribly, but I'd love to NOT have to come here 20 hours a week!

 

[Stephaniecafe]

Keep your head up. Someone once told me that you don't drown by going under water, you drown by staying there. I am finally home with my kids in time to see them all grown and in school. You will win at this if you KEEP FIGHTING the Good fight.. Don't punch any co-workers though...

 

[Kitchen Diva]

I'm slow...what does KWIM stand for?

 

[chefann]

Know What I Mean.

 

[Christ Follower]

I am in the same boat with you ladies. I have tried (and will continue to try) saying all the things to counter the recession excuse, but bottom line, I had my only 2 shows for this month BOTH postpone because of people having a lack of money and several that didn't get set up for March because the potential hosts knew their friends couldn't buy anything yet. It is frustrating.

 

[krzymomof4]

Remind me again (the brain cell is sleeping) where you live in IN? I'm in the southwest part of Cincinnati - about 20 minutes east of Lawrenceburg.

I am about 30 min north of Louisville.

My problem with the recruiting angle (although it is a good one) is that if hosts are having trouble getting sales for their own show, why would they think that the wouldn't have the same problems as a new consultant.

 

[Stephaniecafe]

This thread has motivated me to hit the mall and start contacting new people. If they are shopping... they neeeeed meeeee!

 

[stacywhitlow]

I've been having low sales since the fall. It is starting to pick up a bit. At least I am getting more bookings.

 

[baychef]

Love what the upline said about recruiting. I am starting my 8th year with PC and I have heard the same thing when gas was dirt cheap. Not saying that money is tighter...but as you say... the candle parties, the scrapbooking, the jewelry and all of the other DS companies are doing fine.

That is why I love PC. It is made to help in the kitchen and with the Power Cooking shows, we can help people.

I was closing up a February party for one of my friends who sells Tastefully Simple. As she was choosing her 2 - 60% off items, her 1 - 50% off item, her $40 of free product (and she got 2 or three bookings to save her additional money) she was disappointed that she couldn't use the 20% off or her $40 free to pay for the remainder of the 60 and 50% off items. She mentioned about that not being fair (semi sarcastic) and my response was to point out the huge discounts she was getting. I almost said...I know what you mean. I was floored when I paid almost $9.00 for a damn jar of TS salsa that was not over 8 oz. in size!! And the only guarentee it that it will be flushed out of my system within the week and that my wallet will be lighter!

 

[amy07]

Love what the upline said about recruiting. I am starting my 8th year with PC and I have heard the same thing when gas was dirt cheap. Not saying that money is tighter...but as you say... the candle parties, the scrapbooking, the jewelry and all of the other DS companies are doing fine.

That is why I love PC. It is made to help in the kitchen and with the Power Cooking shows, we can help people.

I was closing up a February party for one of my friends who sells Tastefully Simple. As she was choosing her 2 - 60% off items, her 1 - 50% off item, her $40 of free product (and she got 2 or three bookings to save her additional money) she was disappointed that she couldn't use the 20% off or her $40 free to pay for the remainder of the 60 and 50% off items. She mentioned about that not being fair (semi sarcastic) and my response was to point out the huge discounts she was getting. I almost said...I know what you mean. I was floored when I paid almost $9.00 for a damn jar of TS salsa that was not over 8 oz. in size!! And the only guarentee it that it will be flushed out of my system within the week and that my wallet will be lighter!

Ann! You crack me up!!

 

[Teresa Lynn]

is anyone else noticing milk is $6 a gallon in their area?

 

[time2cook]

$6.00 a gallon! Ouch! I was complaining because it is $4.00 here--eggs are getting really expensive also. I guess we have to go back to good old oatmeal for breakfast.

 

[Nanisu]

I have been focusing on telling my guests at the shows "sometimes when the economy is a little slow, people really love to eat at home and entertain at home. Aren't you glad our kitchen tools and Simple Additions make it so easy to do that? Our recipes are delicious yet inexpensive, and the right tools make you look like a gourmet cook!".

 

[lockhartkitchen]

Wow! We're $2.50 a gallon for milk here. It went up from $1.89 a year ago. We have local farms. I take it for granted. One of my students brings me in fresh brown eggs. I pay her $2.25 a dozen. We're not having the issues with our economy in my area of Oregon. My sales have been good. People are wanting to spend money on PC. More of my hosts are hosting for the "party atmosphere" not necessarily needing products. Their friends/family are buying up. I have noticed prices in houses dropping by up to $40k on some homes, as we've been looking for the last year. Many people are selling so they don't go into foreclosure. It's getting harder to get loans now too. We're having to put more down than expected, to guarantee financing. Buying of products hasn't been an issue around here. I'm sorry to hear about the east coasters. I know when I first started with PC I lived by a low income area, and would get so frustrated when I barely hit $150 at some shows. Many guests would come eat, but wouldn't buy.