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It’s Only Common Sense: Selling During an Economic Downturn

As businesses brace for an economic downturn, there is a temptation to cut budgets and ride out the storm. However, for those who see beyond the immediate obstacles, recessions are a chance to stand out in a crowded market, strengthen relationships, and position your company for long-term success. In this column, we’ll explore strategies for selling during a downturn, focusing on how to adapt, thrive, and capitalize on opportunities others might overlook.

Recessions Are Opportunities in Disguise
During recessions, customers are more cautious, and competition can waver. This creates a void for businesses willing to adapt and innovate. Look at this time as an opportunity to shine. Customers still need products and services, but they’re looking for partners that offer value, reliability, and trust. By delivering on these fronts, you can not only survive but thrive. For example, during the 2008 financial crisis, while others were cutting back, Netflix capitalized on the stay-at-home culture and offered affordable entertainment. It identified the changing needs of its audience and met them with innovation. Recessions favor those who read the room and respond effectively.

Adapting Your Sales Pitch to a Cautious Market
A cautious market requires a different approach. During prosperity, sales pitches can focus on luxury and additional benefits, but in a downturn, customers prioritize practicality and necessity. The key is understanding your target audience’s pain points and tailoring your pitch accordingly.

Lead with empathy. Acknowledge your customers’ challenges and position your product as a solution. Highlight how your offering can save time, reduce costs, or mitigate risks. For instance, a software company might emphasize how its tools can automate processes and cut operational expenses, rather than simply showcasing their advanced features.

Back up your claims with data. Provide case studies, testimonials, and quantifiable results to build trust. During uncertain times, customers gravitate to businesses that demonstrate measurable value.

Emphasizing Value Over Cost
Price sensitivity increases during a recession, but competing solely on price can be a race to the bottom. Shift the conversation to value. Show your customers why your product or service is worth the investment, even in tough times. Value isn’t simply about the product; it’s the overall experience. Are you providing exceptional customer service? Do you offer comprehensive support? Can you guarantee reliability? These contribute to perceived value and can make a difference in securing a sale. For example, even during economic downturns, Apple maintains its pricing because it has built a reputation for quality, innovation, and customer satisfaction. People are willing to invest in a product they believe will deliver long-term benefits.

Building Loyalty by Offering Flexible Terms
Customers appreciate companies that understand their situation and are willing to accommodate their needs. Offering flexible payment terms, subscription models, or trial periods can help build trust and loyalty. For instance, if you’re in the B2B space, extend payment deadlines or offer tiered pricing based on usage. This shows you’re invested in your customers’ success. This partnership mentality creates long-lasting relationships and repeat business.

Avoiding Panic: Staying Confident in Your Product
Panic is contagious, and it’s one of the worst things a salesperson can exhibit during a downturn. If you don’t believe in the value of your product, why should your customers? Confidence—rooted in the understanding that your product can make a difference—is key. Do this by focusing on your company’s success stories. Share them with your team and your customers. This boosts morale and reinforces your product’s credibility.

Investing in Relationships, Not Just Transactions
Economic downturns separate transactional businesses from relationship-driven ones. The latter always comes out ahead. Building strong relationships with your customers ensures loyalty and trust, even when budgets are tight.

Understand your customers’ evolving needs. Schedule regular check-ins, offer free consultations, or provide resources to help them navigate challenges. When customers see you’re invested in their success, they’ll reciprocate with loyalty. This helps retain current customers and attract new ones. Word-of-mouth is powerful, especially in tough times. Satisfied customers will become your advocates, bringing new business your way.

Examples of Companies Thriving in Downturns
History is full of examples of companies that not only survived but thrived during recessions. During the Great Depression, instead of cutting advertising, Procter & Gamble doubled down, focusing on radio soap operas to engage its audience. This not only sustained their business; it solidified their brand for decades. Similarly, during the 2001 dot-com crash, while other tech companies were collapsing, Amazon focused on improving efficiency and expanding its products. This positioned Amazon as a dominant player when the economy recovered. Both companies knew how to adapt, innovate, and invest in their future. They didn’t shy away from challenges and instead embraced them as opportunities to grow.

Conclusion: Thriving in Tough Times
Selling during an economic downturn is about adjusting your approach, understanding your customer’s needs, and finding ways to deliver value. Recessions are challenging, but they’re also a chance to differentiate yourself and build a foundation for long-term success.

Businesses that thrive in tough times see opportunities where others see obstacles. By emphasizing value, staying flexible, and investing in relationships, you can turn a downturn into a launchpad for growth. Remain confident and proactive and make the most of the opportunities that come your way.

It’s only common sense. 

Dan Beaulieu is president of D.B. Management Group.