A recent private industry report revealed customers are spending more for the fourth straight month.
“The message is continuing progress for the economy, if not as fast as hoped,” said Pierre Ellis, a senior economist at Decision Economics in New York.
Despite the unemployment figure edging up 9.8% people are still spending.
What are they buying?
Deb Riechmann of the Associated Press reports “sales of chocolate and running shoes are up. Wine drinkers haven’t stopped sipping; they just seem to be choosing cheaper vintages. Gold coins are selling like hot cakes. So are gardening seeds. Tanning products are piling up in shopping carts; maybe more people are finding color in a bottle than from sun-worshipping on a faraway beach. Strong sales of Spam, Dinty Moore stew and chili helped Hormel Foods Corp. post a 6% increase in first quarter sales in its grocery products unit.”
Riechmann also says “consumers have trimmed household budgets and postponed buying cars, major appliances and other big-ticket items. Yet they still are willing to shell out for small indulgences and goods that make life more comfortable at home, where they are spending more time.”
How can you as a business owner take advantage of the economic situation?
“Start-ups which focus on selling aspirins to either market do far better than those attempting to sell vitamins.” Says startupjunkies.org author Clayton Christensen.
Clayton continues saying people will gladly pay you to make their problems disappear in any economy.
Shane Ducan, Assistant Editor, HowToMarketYourBusinessNow.com
