The extent to which economic turmoil still exists in parts of our economy was revealed to me in a recent email, which came from a friend who was attending a media conference back on October 1 in our nation’s capitol. His note explained that he had, “…picked up a copy of the Washington Post this morning, and noticed that there were foreclosure notices for more that 400 properties. A quick check of the Employment classifieds page found just one.”
I had to respond to his note for clarification: “One page of employment listings? Or do you mean just one job listing?” The answer was: One job listing.
Another reminder of the severity of the current unemployment picture was broadcast last night on 60 minutes (CBS). I found the piece compelling because it gives a face and a voice to an issue that is too often viewed as a statistic. See it by clicking here.
Implications: It’s easy to think of “the new frugality” as a decision that people have made. But in households where incomes have dropped due to the loss of one or more paychecks, frugality is a behavior which has been imposed, not selected.
It is critical for companies to realize this. A significant share of the population is trying to make ends meet under very difficult circumstances. The value shopper should be treated with respect… not like a person who is simply trying to be cheap, but as someone who is trying to reconcile their budget with a very harsh new reality.
Yes, for a significant number of consumers, “frugal” is a new fashion statement. For others, it is a survival tactic. How can you help?
Mike Anderson
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