Surviving Recession: Small Businesses Share Their Stories

[krzymomof4]

I have a question for those of you who have been down this road in the past. How did the recession of the past affect your business.
For Pete's sake, if McDonald's and Starbucks and Walmart are already feeling the pinch and we haven't even been in a declared recession yet, what will that do for us? I live in a small farming community and am afraid that my business will suffer.
What is everyone else's experience?

 

[missyciccolella]

My husband and I just had this discussion and there are a few ways we "think" it may go...I'm interested to hear from someone who has been down that road.

We could see a huge jump in bookings...anything free or discounted is better than full price!
We could also see a huge jump in recruits...everyone is feeling a pinch and needing more income.
Of course it could be the complete opposite, but I doubt it...everyone loves PC! I choose to remain optimistic!

 

[finley1991]

My biz has been better than ever. Yes... restaurants are feeling the hit because when times are tough, sometimes people feel like they should eat at home more. That's where we come in! Plus, in my opinion, I don't think we sell a luxury item... not like home decor or jewelry. We have things people need and don't feel guilty purchasing because they will use them!

 

[sarahlegare]

I tried to get a booking from a lady at my mom's work. She just bought a new house and my mom & I thought it'd be a good way to get people to see her house and for her to get stuff free. She told my mom that because of the recession, she didn't want people to feel pressured to spend their money of PC. Clearly she doesn't know how a recession works! When people stop spending their $$ and panic, a recession happens! She's kinda an *itchy person anyways, but geesh!!!
I'd rather believe that what Bush & congress are trying to push, pumping $$ into the economy, will solve everything (I know, I know, it won't)!! It's gonna put a deck on the back of our house though!!!

 

[ChefBeckyD]

Here is my experience so far......I live in a state that has been in a "one state recession" for quite a while now. We have the highest unemployment in the nation, and we have the worst economic forecast in the nation.

My bookings have never been better. I avg 2-4 bookings per show, and have been doing 8-12 shows per month. I could probably even do more if I worked my business a little harder. I think the bookings remain strong because more people are cutting corners and needing to eat and entertain at home - and I give a lot of ideas on how to do that. I'm sure that is why the 30 minute chicken show is so popular!

Sales are smaller. I have seen my avg. sale per order go down by a good $10-$15 per order. My show avg used to be $625, and now is $475.

I think where it has been hardest is recruiting. Even my director, AD & SD are having difficulties recruiting. (my director recruited 2 and qualified 1 last year, and my AD recruited zero! And they are both long term consultants with proven recruiting success! My ED went to SD, and my SD is now my AD) So many people are out of work, or in jobs that are tenuous at best, and they don't want a job with the possibility of a good income, they need a job that has a solid income with benefits. Most are also put off by the $155 price tag. I know all of the right things to say about earning it back after your first show or 2, and getting the host discount on it, etc.....but most just tune all that out after hearing $155.
That doesn't mean that I give up on recruiting. I am continuing to talk about it and share my story - but I am just giving you the atmosphere I am working in here.
My mantra has always been to be persistent and consistent, and I will continue to be both of those. By doing so, I know that I can ride this out and come out on top!

 

[ltkacz]

I agree with BeckyMy sales for 2007 were up 25% - and that's in the "single state recession".

I have been getting a lot more bookings at shows because people want to be able to get items for "free" when they host.

 

[erinb]

I don't think things will get too bad. The morgage industry is starting to liven back up and people are starting to be able to refinance. The rate cuts have helped tremendously. It won't be long until things are on the rise again.

This is also tax season and everyone that gets those nice refunds will be paying bills or spending it all at the stores. And in a coup[le more months, we will all be receiving those nice little checks from the government.

 

[The_Kitchen_Guy]

I don't see any recessionary activity around here. What I do see is a lot of media types hand-wringing about it and I can't help but think this whole thing is election year rhetoric.

 

[ChefBeckyD]

I don't see any recessionary activity around here. What I do see is a lot of media types hand-wringing about it and I can't help but think this whole thing is election year rhetoric.

Nope, all of the recessionary activity is here in Michigan, thanks to Jenny.

 

[chefann]

At least the recession is a different topic than what's been in the Detroit local news this week. If I hear the words "mayor" and "text message" in the same sentence again, I'm going to scream!!

 

[ChefBeckyD]

At least the recession is a different topic than what's been in the Detroit local news this week. If I hear the words "mayor" and "text message" in the same sentence again, I'm going to scream!!

Yeah, it's been pretty big news over on this side of the state too!

 

[chefann]

We had on the evening news last night (and not even the station that is usually the most sensationalist), and they didn't even change topics for more than 20 minutes. The big, breaking, exclusive was an interview with the chief of staff who resigned. It was a reporter on the phone with her, and the woman who resigned just kept saying, "It's in my letter. Thank you." How is that news? The station didn't read the letter on the air.

 

[Shawnna]

My sales were up during the past year. I had more shows and my average orders stayed about the same. People are still spending money, they have just changed their priorities. I own a restaurant and I have the same people in every night. People are busy. In my area their is a high school, JH, or grade school ballgame every night and even with high fuel prices people are traveling to watch. Everything here is about sports. This means that people are not eating at home during the week, they are eating fast food or eating at the games. I don't see shorter lines at the grocery store, WalMart or any other store for that matter. I do however see longer lines at the casinos that seem to be going in everywhere. It is all about priorities.

 

[RebelChef]

lol Shawnna, I've never seen so many tiny casinos as I did up there. Some of them were no bigger than my living room.

 

[The_Kitchen_Guy]

We talked a couple of months ago about how Michigan was like a test laboratory for well-intended but stupid government polices causing a recession. It should be a lesson to the rest of the country. (But it won't.)As far as being able to predict a recession, one cannot predict a recession any more than one can predict a boom nor predict what's going to happen in the stock market tomorrow.

 

[ChefBeckyD]

We talked a couple of months ago about how Michigan was like a test laboratory for well-intended but stupid government polices causing a recession. It should be a lesson to the rest of the country. (But it won't.)

As far as being able to predict a recession, one cannot predict a recession any more than one can predict a boom nor predict what's going to happen in the stock market tomorrow.

Hey - that's exactly what the email from our financial planner said this morning!

 

[The_Kitchen_Guy]

If you took all the economists in the world and laid them down head to foot, they'd never reach a conclusion.

 

[Pampered Laura]

I was just talking to a consultant this morning, who sells on my team and she also does Pampered Chef. We both agree that it's companies like ours that will never be affected by a recession... ONLY if the consultants are able to present it to their clients in a way that's "thinking outside the box".

People go through stages during a recession. The first thing they typically do is cut out "luxury" expenditures, which are usually outings and such. So they stay home and rent a movie instead of paying at the theater. They have kids slumber parties at home instead of at a play center. They watch more TV in their living rooms. They seek the comforts of home and become closer while they "nest". This is why I'm not worried at all... I'm seeing a huge spending flux rather than the opposite.
For Pampered Chef, you guys can tell your clients about cooking at home and how to involve the family to make cooking their "entertainment".
It's all up to the consultant. The creative consultants who are able to put a positive spin on this so-called recession will actually come out ahead.
My 3 cents.

 

[janetupnorth]

The creative consultants who are able to put a positive spin on this so-called recession will actually come out ahead.
My 3 cents.

I noticed your inflation...


...or is that coming out a penny ahead of the rest...