Welcome to the Bottom Line Top Line Podcast with Carol Bartlett, Jol Hunter, and Chris Spurvey.
Today on the podcast, we explore some of the strategies that businesses employ during highs and lows. When things are tough, how do successful businesses adapt? When things are going well, what strategies do they implement to help them sustain their success?
Check out the full episode!
To download the document, scroll to the bottom of these show notes and fill in the form.
How to Get Through the Hard Times
I’ve been through both the oil and gas industry downturn and the boom time when the province of Newfoundland and Labrador was doing amazingly well but the rest of Canada wasn’t. Then Canada’s economy started to grow again, but the oil and gas industry tanked and the province’s economy followed soon after.
To make it through an economic downturn, focus on what really can get you to the end rather than worrying about things on the fringe.
Instead of chasing everything, trim back and focus on your primary goals—your primary service area and your primary client—and scrutinize your expenses and your organization’s structure.
Raising Prices During Tough Times
Raising prices in tough times is difficult, so seeing qualified individuals deciding to do just that should give you pause.
In tough times, customers are more concerned than usual about risk and so they’re ready to pay more to mitigate it. I can’t tell you whether raising prices in a particular situation is right or wrong; however, your team should stop and think about any potential tactic or strategy before pursuing it—especially when you all may be feeling under stress and depleted.
Lower Prices in Exchange for a Long-Term Contract
If you can convince your suppliers to commit to a lower price for a longer term, you’ll be better off because you will have reduced your costs.
And in such a situation the suppliers may think, “We’ll give a lower price on a long-term contract, because we want to reduce our risk and lock in the business.” In addition to reducing your cost, you will have built a long-term relationship.
To learn more about these topics, please listen to the episode.
Mentions
Connect with Carol, Jol and Chris on LinkedIn.
Winners and Losers in Tough Times