How to Sell Through an Economic Downturn

It may be time to dust off my notes for a talk I gave a few years ago about the challenges and opportunities of selling in a down economy. Little did I know then, in 2001, that the economic upturn that followed would be so short lived. Before you can prepare to sell in a down economy you need to be sure you're in one or will enter one soon. But how can you tell?

Watch the fortunes of small business. Signals of an economic downturn begin to flash when small businesses cannot obtain the financing they need to operate and grow. It's easy to forget that 90% of American businesses have fewer than 20 employees. As credit markets tighten, and small businesses are unable to secure financing for growth, or for weathering rough waters, it's time to prepare for selling in a down economy.

There are some other unconventional economic indicators I pay attention to when I think about how the economy is doing. Cutbacks in the routes of delivery companies like Federal Express and UPS usually appear as early warning signs of a general slowdown. Federal Express recently advised that it expected reduced revenue in 2008. When Hormel Foods Corporation, the maker of Spam, reports higher sales of the canned luncheon meat, as they indicate they will in 2008, you can bet that folks in large numbers are hunkering down for a recession!

The causes of each economic downturn differ, at least slightly, from previous downturns. The housing industry, which was generally credited with propping up an otherwise wobbly economy for the past several years, now is leading the economy into choppy waters. The large number of interest only, adjustable rate, no money down, no income verification, and no credit-required loans written during the housing boom, and the reality of declining house values, is now a prime cause of the bad moon rising.

How then do you, the sales professional, survive and maybe even prosper when a bad moon rises and you find yourself selling in a down economy? There are at least four things you can do to prepare to sell through an economic downturn:

- Stay in front of your customers.

- Get to the senior executives in buying organizations.

- Share success stories with senior executives that are relevant to their business.

- Manage your time as a guardian of your company's resources.

In tough economic times it's vital that you stay in front of your customers, especially your best customers. One major caveat applies to this advice - only contact your customers when you have something of value to offer them, such as advice, an unusual perspective, or special knowledge. Never, I repeat, never, contact a customer during tough times and ask, "Do you have any orders for me today?" That inane question will drive customers to the nearest exit!

Unfortunately, middle managers are often a primary layoff target when times get tough. This reality, however, presents an opportunity for you to meet with senior managers who might be inaccessible during boom times. Forget about "pitching" special programs and offers to senior executives at buying organizations. Rather, listen carefully to them and be sure you really understand their concerns and the challenges impacting their business.

Senior managers are usually eager to hear about what other companies are doing to address tough issues and circumstances. Without divulging anything held by you in confidence, sharing success stories with executives is a powerful way to build your credibility and your business relationships with company leaders. You might, for example, share the experiences of a vendor who used a particular marketing approach to expand their universe of potential customers.

Finally, while it's always important to effectively manage your time and your territory, it's critical to optimize your selling time and guard your company's resources during an economic slowdown. By pursuing only realistic, profitable sales opportunities, you can help ensure the best use of your time and of company resources - both of which are usually strained in a down economy.

Most salespeople are notoriously poor planners, and preparing to sell in a down economy isn't much fun. Keep in mind, however, the words of Sir John Harvey-Jones who offered this observation: "The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression."