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Posts Tagged ‘Unemployment’

How does the economy effect my business and that of my competitors?

November 16th, 2012 1 comment

My business is in tutoring, but I’m also a merchant on amazon and ebay.

In a slower economy, as a tutor you can see an interesting result.

One might initially think that as a tutor you are going to see less business as does all other industries in a slower economy based on the fact that people generally have less money available for "luxuries".

However if you come up with a proper marketing strategy you can actually turn your business up as a tutor during a down economy.

Right now is a perfect time to emphasize the importance of education and higher education (depending on the grades you tutor) and why it is important to keep children ahead of the curve.

Put together statistics for yourself showing the percent of unemployed amongst those with degrees and those without degrees then use some creativity to incorporate this into a marketing strategy.

Your appeal to people will be that through the use of your service they may save their child from future unemployment in a down economy (the economy has turned down about every 10 years for the past 100 years).

In terms of your merchant business on amazon and eBay. You will generally see less business because people have less money to spend.

However you may not be hit as hard as you would be if you had an actual store front because the fortunate thing is your audience is anyone who shops on amazon or eBay (as opposed to only the people walking pass your store front).

Amazon has been steadily growing each year, and this growth, even during this down economy, comes only because of an increase in sales from its users. Thus meaning that people using amazon as seeing more sales, meaning your sales should not be effected too a great extent.

Good luck to you.

I hope this helps you.

Is the current crisis affecting peoples’ spending habits?

October 17th, 2012 1 comment

I wanted to ask specifically about spending (with regards to the current crisis), because I sometimes like to sell things online on the side, and nobody has really bought anything in the last few months.

Is it just me, or have there actually been studies/statistics recently showing that the crisis is actually scaring people away from purchasing things they don’t really need, such as consumer electronics and designer clothing and things?

I mean, has there been a drastic drop in sales in the last few months for retailers and sites like eBay and Amazon? I wouldn’t be surprised if it were true, considering the problems with unemployment, the stock market, rising prices, and most importantly, CREDIT. Seems like all of these things would adversely affect the consumer’s likeliness right now to purchase things they don’t need.

If so, I’m scared to think how long it may take for people to get back their "spending confidence."

There has been a decline in spending.

Much of our spending is financed by debt; hopefully this crisis teaches people to be more frugal.