An update on the housing market

The mortgage meltdown and the bubble in real estate prices are widely thought of as two of the major causes of the recent recession.  So when the Wall Street Journal offered this story about the current state of the housing market, I thought I’d share it.  (Click here to see the story.)

Implications:  The challenge with articles like this, of course, is that the housing market tends to vary widely by region.  But it’s nice to hear speculation that a bottom may have been reached with declining home values, even if an upward turn might be a ways off. 

It is important to note that while home buyers do great things for the economy, home keepers do, too.  If you own a home that is worth less than you could sell it for, aren’t you a prime customer for the kind of improvements that make it a pleasant place to live?  I’m thinking about major enhancements like new floors, granite countertops, and home theatres.  People who are “stuck” in their current house because of the real estate market are still likely to want the home of their dreams.  It’s just that getting it might involve spending on their current house, rather than moving to a new one.

What kind of opportunity might that perspective create for your company, product or service?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

After all this, owning a home is still the American Dream

A story in today’s New York Times suggests that even though consumers know their home is not the wonderful investment property it once was… most Americans still aspire to live the dream of home ownership.  (Click here to see the story.)

Implications:  Property and safety hold a pretty important position in Maslow’s Hierarchy of Needs (also known as the Theory of Motivation). 

After reading this NY Times story, one might better understand how the real estate bubble became so inflated in the first place, and why the housing market is likely to eventually come back.  But perhaps more importantly in the near term, this respect for hearth and home might suggest why home improvement and home furnishings can be such resilient categories, even in a seemingly challenging economic environment.

It’s true.  There’s no place like home.  If your product or service is used there (in the home), is your messaging doing everything possible to push those hot buttons?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: More on the increase in non-traditional family units

Earlier today (and often over the past few years), I have posted about the changing look of the American family.  Today, a story from CNN provides additional perspective—specifically on co-habitation vs. marriage—citing data from the Pew Research Center.  Click here to see the story.  

Implications:  If you cater to families, make sure you know what families look like in your city/region. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

A snapshot of the economic chasm

Today’s Advertising Age also included a graphic showing general economic health by family type, age, race, and education.  Click here to see it.  (By the way, notice the tabs at the top of graphic, which is how you’ll navigate between views.)

Implications:  I’m thinking about the overwhelming number of companies who describe their target as “the typical family,” and in doing so, assume that means a family that is married with children.  For one thing, families that meet that description are in the minority these days (according to this graphic, and supported by Audience DNA research projects I’ve done in dozens of major cities).  For another thing, many of those families—with the higher expenses that often come with raising a family, such as healthcare, food and housing—are feeling the pinch of the current economy event more than most.

Don’t get me wrong:  That doesn’t mean the traditional Married w/Children household isn’t a lucrative target.  But it might mean that more of these families are focused on value and cost savings than they were a few years ago.  And it means that the 2011 picture of a traditional family might not look very traditional anymore.

[Thanks, Jim Hopes, for sharing the link to this story and graphic!]

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Can consumers buy time (from you)?

Yesterday’s New York Times had an important story about people who have lost a major “career” job, and who are now piecing-together several part-time positions to make ends meet.  Click  here to see the story.  

Implications:  When it comes to surviving the current economic environment, many people have devised creative and sometimes dramatic measures to make life work.

Think about that.  Once upon a time, we might have assumed a C- or VP-level executive to be a terribly busy person; an important customer for whom time is more precious than money.  On the other hand, one might have assumed that workers in a less stressful job had plenty of time on their hands… and that they might see savings a few bucks as more important than saving time.    

Well, you can toss those assumptions into a bin labeled “1999 stereotypes that no longer apply.”

Consider the middle-aged adult (or anyone) who lost a career job somewhere during the Great Recession… and who is now working two or three jobs (or more) to make ends meet.  Consider how tired and frazzled they are, and how little spare time they might have. 

What does your company, product or service do to help time-sensitive consumers make ends meet, either in terms of cost savings, or in the way it helps them save time… and take a much needed break?  Are you doing everything you can to streamline the transaction time?  Are you making it easy for people shop or research their purchase via your website?  Are you open extended hours, and is your staff respectful of their customers’ time?

There is an old saying that “you can’t buy time.”  But you can sure sell products and services that help people save it.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The chasm between affluent and average consumers continues to widen

Friend and colleague Jim Hopes sent me an article that appeared in this morning’s Advertising Age.  It had to do with the growing distance between higher income consumers… and everyone else.  Click here to see the story. 

Implications:  Since the recession began—even through the current recovery—a core tenet of Elm Street Economics is that “The target consumer you serve today might be somewhat or completely different from the target consumer you served in 2006; and even if you have the same target consumers, those people may have vastly different needs or purchasing priorities.”

The Ad Age article helps illustrate why that is the case.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

A study of small-business confidence

This morning, a story on MinnPost.com cited the findings of a new research report by U.S. Bank.  The study shares insight as to the degree of confidence that exists among small business operators in the 25-state footprint of the bank.  Click here to see the MinnPost.com story, or, to see the U.S. Bank report as a PDF, click here.

Implications:  While the recession was widely proclaimed to have ended in June, 2009 (see this story example from the Washington Post), this study is another example that perception is reality. 

If you’re a bank selling loans to businesses—or if you’re a shoe store selling to consumers on Elm Street—the recession is over when your customer says it is over.

Have you talked with your customers, lately, about how their personal recovery is going?  It might be a great chance to hear of products or services that you could offer to help them celebrate their recovery, or mitigate their on-going financial battles… whichever the case might be.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Harry Potter goes directly to the people

Author J.K. Rowling has decided that the e-book versions of the popular Harry Potter stories will be distributed independently of traditional online booksellers.  Click here to see the story as provided by MyDaily.com in the U.K.  The new online store will be part of the interactive site, “Pottermore.com.” 

Implications:  While Rowling’s publicity angle is that this is the author’s way of “…thanking the fans” and letting them interact directly with the storyline, many commentators are quick to suggest that the decision was driven purely by profit (see this take from Marketing Daily today).

My take:  Are the two objectives mutually exclusive?  I think not.  This is a great example of a situation where giving the consumer more direct control over their relationship with a product has led to more profit for that product’s creator.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Oil reserves released to calm the economy?

A few minutes ago, the Washington Post issued a news alert explaining that Washington was releasing 30 million barrels of oil from the nation’s strategic reserve to help cover the disruption in supply caused by conflict in Libya and other suppliers (click here to see that story). 

Okay, I’ll raise this issue for its relevance in to the topic of consumer trends (not as a politically-motivated conversation):  Isn’t this a different position than we heard earlier this year?

As recently as February, news organizations like CNN were reporting that the unrest in Libya should have little or no impact on the U.S. oil supply—or prices—because the country is not a big supplier to the U.S. and produces primarily the kind of crude that is used in diesel and home heating oil (click here to see that story). 

Implications:  So why did we NOT tap the reserves when I was paying $4.16 per gallon a couple of months ago, but we ARE tapping the reserves today, when gas has dropped to $3.56 per gallon at my service station down the street?

To quote the original George Bush, “It’s the economy, stupid!”

Two months ago, while things felt tenuous, employment reports were good, housing prices had at least flattened, the stock market was steady, and the economic recovery seemed to be (while slow) still making progress. 

Today?  I would interpret today’s move as a sign that the country’s leadership feels like the economic recovery is in a vulnerable state… and they don’t want anything further (like the price of gas) to complicate its progress.

Do consumers feel like they are making economic progress in your area?  Do they feel like the recovery is solid?  Are they (like me) a bit confused by the timing of this decision (to release reserves)?  When it comes to consumers, confusion is often the opposite of confidence.  To restore calm, the best move is to reduce confusion.  (So far, that hasn't happened... at least as far as I can tell.)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Data shows growing disconnect between some retailer and manufacturer priorities

Today’s Marketing Daily provides a story showing that while manufacturers are still focusing squarely on issues of category management, big retailers are turning to more to consumer insights data to drive their merchandising/marketing efforts.  Click here to see the story.  

Implications:  It only makes sense to me that a manufacturer’s nature would be to focus on the collection of goods they’re selling through to retail.  Further, it is perfectly logical that the retailer would be most focused on the consumer, as they’re closer to that touch point… that is, at least while the consumer is in-store.

I left this story reminded of the importance of partnership between retailer and manufacturer, and how important customer reconnaissance tools might be… to both sides.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Vacant retail spaces filling-up with more discounters

I’m in St. Louis this morning, and saw an interesting story in the St. Louis Post-Dispatch about the decreasing number of empty stores… and the increasing presence of discount retailers.  Click here to see the story from STLToday online.

Implications:  It was only a matter of time before someone’s problem (empty commercial real estate) became someone else’s opportunity (new stores at a great rental rate).   

Beyond discounters (whose operating model protects them from online purchasing, according to the story), what kinds of businesses might make sense for that empty space a few doors down from you?  What kind business might you least like to see open-up?  Can you influence the style of occupant, in one way or another?  What kind of new business makes perfect sense in this kind of economic climate?  Is that a business you should be in?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: Conventional compacts cut into hybrid sales

Today’s USA Today carried a story which supports and further enlightens our posting from yesterday about hybrid vehicle sales.  Click here to see the story.

Implications:  As I wrote yesterday, conventional cars were already eating into hybrid sales.  But one must wonder how much further hybrid car sales might be impacted by the recent falling gas prices. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The end of anonymity: Little is secret on the social web

Today’s New York Times featured a story about the way social networking can relieve its users of their privacy.  Click here to see the story.

Implications:  With all the recent publicity given to sexting or sharing all-too-graphic photos by text message, people MUST be getting the message that all forms of electronic communication leave a traceable digital fingerprint.  Still, one sees plenty of party shots on Facebook or other social sites… just as available to a potential employer as it might be to your party friends.

What do you think?  Will people become more cautious or private in their online communications?  Or will we simply become a more candid society?  And in what ways might that influence the way you communicate with your customers and prospects?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Watching the progress of the automotive recovery

Today’s Marketing Daily featured remarks by George Magliano, principal automotive economist for IHS' Global Insight research division.  Speaking at an event on Friday, Magliano explained his why he thinks the U.S. automotive recovery is still moving forward, while acknowledging that risks remain for the category.  Click here to see the MD story.

Compared to late last year, emerging risks include continuing unrest in the Middle East and the pace of the recovery from Japan’s tsunami disaster.  The ongoing stagnation in the housing market and job creation also challenge the industry.  On the positive side, Magliano cited falling gas prices and the value of the dollar (which gives U.S. exports a pricing edge for now).

Implications:  This story is a good example of how important it is to watch several influencing factors, rather than one or two headline-worthy issues. 

Just make sure one of the issues you’re paying attention to is customer feedback.  Success is less driven by what we think will happen; it is fueled by what the consumer thinks will happen.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Higher gas prices did not compel hybrid consideration as expected

During a symposium talk last Friday, AutoPacific President George Peterson explained that, “Small car and hybrid consideration is not tracking anywhere near the rate of the price of fuel as it did in 2008.”

Earlier this year, some hybrids and other small cars were selling at above list prices, driven by climbing gas prices and the fear that there would be shortages of the hottest cars after Japan’s tsunami disaster.

Click here to read more about Peterson’s remarks from Automotive News (subscription required).  He notes that improvement in the fuel efficiency of larger vehicles is one factor that has led more people to remain comfortable with the idea of holding-on to their larger car ways.

Implications:  I’ve written extensively here about The Fuel Economy, fearing that a sustained increase in the price of petroleum could have a domino-effect on inflation.  But for now, that fear seems to have passed.

At your company, are you seeing a windfall of spending in response to falling gas prices this past month?  Are your customers talking about lower gas prices?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Thoughts from a trend watcher

Today’s Marketing Daily provides an interesting list of trend observations from Marian Salzman at Euro RSCG.  I’ll warn you that the writing is a bit clumsy… but it’s worth the read.  Click here to see it.

Implications:  I was particularly interested in these four elements from the article:

• “Water is the new oil” could become a battle cry for the southern and western U.S. (and for many countries around the world).
• Beached males… men who are out-of-work and having to learn (or re-learn) basic skills to regain their relevance to employers.
• The consumer’s desire for brutal honesty.
• The anti-social effect of social networks (the number of in-person interactions could be in decline).

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Survey suggests consumers will remain methodical about money

A recent American Pulse survey indicates that consumers do not expect their salary to be commensurate with rising costs.  Click here to read the press release.

Implications:  The recent recession taught us to work with people who are more prudent, cautious, and calculating about the way they spend money.  If this survey provides accurate picture of consumer sentiment, we can expect those behaviors to continue for a while.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Small business hiring intentions

This morning’s New York Times carried another report about the conservative approach to hiring that continues to be the standard for many small businesses.  (Click here to see the article.)  The piece seems like a good follow-up to our posting on the topic last from last week (see “Companies adding equipment faster than jobs” from June 10).   

Implications:  Today’s NY Times story reiterates that, just as the recession impacted different people in different ways, the recovery is not being felt by different companies in different ways.  For many, an economic recovery will be hard earned, not something one just waits around for.

The significance of this report on consumers is the implication that future income still feels a bit unsure for a lot of folks.  As jobs go, so goes consumer spending.  I’ll continue keeping an eye on this with you.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Number of new businesses will influence the number of new jobs and employment

Today’s USA Today offers some insight into the relatively small number of new businesses that have been launched in the year ending March, 2011… and how that modest start-up rate has impacted the rate of employment.  Click here to see the story.

Implications:  The rate of employment directly relates to the velocity of the recovery, IMHO.  So instead of just watching employment numbers, it’s smart to watch those issues that might shed light on future employment intentions.

By the way, I noticed in this story that between 2001 and 2007, companies with fewer than 500 workers added nearly 7 million employees… which businesses with a payroll of 500 or more cut nearly a million jobs.

Is your company prepared to serve this trend toward smaller U.S. businesses, going forward?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Companies adding equipment at a faster pace than they’re adding personnel

As the economic recovery continues, companies are more likely to ratchet-up their spending on equipment and other capital improvements, before adding jobs to their expense line.  That’s according to a story in today’s New York Times (click to link).

Implications:  Just as with cars, furniture, and personal computers enjoyed some post-recession lift due to pent-up demand, companies that put-off major investments for a time seem to be resuming those improvements… except where adding staff is concerned.  Perhaps even large, one-time expenditures seem less risky than adding personnel (a recurring, long-term expense).

It all brings us to the frustrating “chicken or the egg” dilemma; which comes first, higher employment numbers, or a robust economic recovery?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Consumer-obsessed is the new customer focused

A story in today’s Marketing Daily suggests that companies must rise to a new standard of engagement with customers, driven largely by technology.  Click here to see the Marketing Daily article.

Implications:  The report seems to aptly point-out that disruptions often come from competitors… but this time, the disruptions are coming from the consumer.  Often, when the consumer shifts their product choice or buying channel, they’re expressing dissatisfaction in the old, as much as enchantment with the new.

Has their ever been a more important time to be hyper-tuned to the things your customers are feeling or saying?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: Opportunities hiding within state budget cuts

Last week, I suggested that some companies could become an important alternative when state and local governments cut back on spending and services (see “When states cut, can you gain” from June 2). 

In today’s New York Times, there is an article that explains the impact of spending cuts on state parks (click here to see the story).  If you operate a private campground, theme park, or other affordable, family-friendly, vacation destination, perhaps this Times story will help spark more ideas.

If you operate a sporting goods store that sells camping equipment, fishing tackle, paddle sports gear or hiking equipment, perhaps this story will foster ideas about making regional or state parks in your area the beneficiary of a cause marketing campaign.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Financial reform still far from a sure thing

In the midst of the Great Recession, certain investment banks and banking practices were cast as culprits of the financial meltdown; it was all the perfect fuel for legislative action and sweeping reforms in the banking industry.  But according to a story in today’s New York Times, many of those reforms are failing to gain traction, as the rulemaking phase of the process faces one delay after another.  Click here to see the story.

Implications:  While many consumers accepted personal responsibility for their share of the financial meltdown (the over-use of credit, taking equity out of their home, etc.), many consumers also felt that portions of the financial industry were at least partially culpable for many of the woes faced during the Great Recession.

If the reforms intended to remedy banking practices are now going stagnant, it could represent a strong opportunity for almost any financial institution, or any sales organization which offers financing or financial services as a part of the transaction:  Transparency.

Does your organization thoughtfully explain the pros and cons of any investment instrument or financing alternative you offer?  Do you promote that transparent communication in your marketing messages?

There is one thing will protect the consumer better than even sweeping banking reform (if/when it actually comes to pass)… and that is help in making an informed choice.  And that’s something you can offer now.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Consumer spending varies by category

Among the mixed economic news last week as a report by Marketing Daily (via Kantor Retail) showing luxury sales up, but gains slowing down for those companies who cater to middle- and lower-income shoppers.  The logic offered was that the latter are more likely to feel the pinch of high gas prices.  Click here to see the story.

Implications:  The recession of 2007-2010 impacted people in a variety of ways.  The recovery that started in late 2010 is more strong and swift for some people than it is for others.  Likewise, inflation and high gasoline prices will impact different consumer groups in different ways.

Have you had this conversation (or researched this issue) with your most important customers?  How are they feeling about their budget right now?  If they’re cutting back, how can you position your product or service as an important priority that adds value to their lives?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

New visual for nutrition changes the picture of health

The FDA has moved away from the food pyramid and toward their new “My Plate” presentation of a well-rounded diet; the change is explained in this story from Marketing Daily (click to link).

Implications:  How can your restaurant menu or the package on your food product fit itself into this new and widely-publicized graphic?  “The MyPlate shows you what to do, and ____________________ (product/store/restaurant) can show you how.”

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: Cautious recovery

This morning, a release from the Washington Post provides support for the idea that the economic recovery is moving slowly and with less stability than hoped (see the Elm Street posting from June 1).   The Post story indicates a rise in unemployment claims and a jobs-added pace of 54,000 in the month of May.  By comparison, more than 200,000 jobs were added in April.  Click here to see the release.

Implications:  When the economy was moving with speed and confidence in late 2010, many people abandoned the idea that this economic recovery would occur in fits and starts… which was the common theory when we were in the middle of a deep recession.  Now, people expect the recovery to be robust and long-term.

A lot of factory jobs were lost because the supply of parts from Japan was interrupted.  A lot of government jobs were lost because states are trying to balance their budgets.  I’m not sure any of that is too surprising.  And I’m not sure how much of it could be considered permanent. 

These headlines are scary… and a reminder how important it is to focus on the customers you serve, rather than the latest reports out of Washington or Wall Street.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

One third of consumers say vacation plans impacted by finances, fuel prices

Not long ago, I pointed to a Research Brief indicating that many consumers were defying the high price of gas, and taking their vacations as planned (see “UPDATE:  Gas Pains,” May 23, 2011).  Today, another survey seems to contradict that assertion, as published by BIG Research.  Click here to see the release.

Implications:  This is a good reminder that trend observations are not unilateral; for every trend, there is a countertrend.  While some folks have “had it” with the recession and are pressing on with their travel plans, there are still plenty of households where caution reigns. 

Do you cater to the cavalier or the constrained consumer?  There is room to profit either way.  Perhaps the family that declines travel this year will instead install a small pool or deck in their back yard, or purchase patio furniture or interior home furnishings… as a means of enjoying a little entertaining, down-time or family fun, without leaving home.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

When states cut, can your company gain?

From education to unemployment services and benefits, states are cutting costs.  That’s according to this story from today’s New York Times (click to link).

Implications:  What could your company do to step in and provide solutions and alternatives to reduced or eliminated government services? 

For example, does more children in the classroom equate to an opportunity for Sylvan, Huntington Learning Centers or other professional tutoring services?  If re-employment counseling and job-hunting services are less available in your state, does that represent an opportunity for private head-hunting firms, local colleges and tech schools, or even temp agencies?

When one provider leaves the market, consumers often seek an alternate provider.  Could your product or service be an alternative to something a government agency once provided?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

An apparently welcome casualty of high oil prices: Clamshell packaging

A story in today’s New York Times suggests that petroleum-based plastic packaging could be an attractive target for cost cutting in the eyes of many retailers and manufacturers.  Click here to see the story.

Implications:  While those clear plastic packages help companies display products in an inviting manner and deter shoplifters from stealing what’s inside, few consumers are likely to complain about the demise of the clamshell package.  They’re hard to open, and they’re not the most environmentally-friendly of packaging options.

But here’s a thought:  Instead of just accepting that you’re reducing the use of clamshells as a cost-saving measure, why not present this shift toward different packaging as something the consumer will appreciate?  “We’ve been listening, and we’ve made our product easier to live with.” 

Just an idea… for manufacturers and retailers alike.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Recovery proceeds on uncertain terms

An article from the Washington Post today suggests that the economic recovery is not going as smoothly as we would like.  The story cites a slowdown in job growth, home prices and manufacturing, among other things.  (Click here to see the story.)  

That said, it’s important to note that differences exist from one city to the next, and by region.  That is explained in this story from USA Today about declining unemployment in many metro areas (click to link).

Implications:  We all love hearing about the economic recovery.  But depending on what report or which pundit you listen to, the experts seemingly continue to send mixed messages.   That’s why listening closely to your customers remains a wise and prudent thing to do. 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Smart phone trends

A story from Nielsen Wire shows current ownership trends for smart phone operating systems.  Click here to see the brief story.

Implications:  Android and Apple seem to be in firm control of the smart phone market for now.  It is worth noting that roughly 3 in 4 Android or Apple owners report having downloaded an App in the past thirty days.  So it’s not just the novelty of the device we’re talking about here… but the utility.

 Is your business set-up to deliver through these preferred channels of contact?  Is doing so right for the kinds of target consumers you serve?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

More funds for Father's Day

According to this story from the National Retail Federation and BIG Research, moms and kids are planning to up the amount they spend for Father’s Day this year.  (Click here to see the story.)

Implications:  I hope my wife and kids are reading this.

But seriously, folks.

This is one more example of the pent-up demand that can follow a recession.  People have suppressed their spending for several years now (the recession was officially given a start date of 12/1/07 when it was announced in 2008). 

Have people cut back on the amount they used to spend—or have they put-off buying entirely—the product or service you sell for financial reasons?  What kind of offer, incentive, or product bundle might help them decide to unleash their pent-up demand?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

In reconsidering nuclear, countries could re-shape the world's energy costs, consumption

Since the disaster at the Fukushima nuclear power plant earlier this year, many countries have been reconsidering their use of nuclear power.  By way of reference, here’s a story that ran in March from CBS News (click to link). 

Yesterday’s New York Times featured a story about Germany’s decision to eliminate all nuclear power plants within the next 11 years (click to link).  

Implications:  The expanding economies of China and India were already putting demand pressure on the world’s limited oil supply.  Now, with major economies like Germany, Japan and others considering a move away from nuclear, one can only assume that fossil fuels will carry at least part of the burden.

Of course, the reason I’m thinking about it is the natural inflationary effect this might have on anything that is manufactured, shipped or used… using petroleum.  Costs are simply quite likely to rise steadily over the next few years.  Not just for gas… but for everything from food to textiles to home furnishings.  Price-point advertising will still matter, but it will be important to establish the worth and value of the products and services you sell.  (The power of price could be diminished if prices rise across the board.)

This potential shift from nuclear power could also lead to greater development and use of alternative, sustainable energy sources.  A story about that possibility also ran recently on CBS news (click to link).  Is your company in a position to brag about your sustainable energy practices?  Are those claims authentic?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.