28-04-2008
Downsizing products recommended to beat downturn
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Entrepreneurs worried about the onset of an economic downturn have been advised to think outside, inside and even about the box.
Jim Surguy, senior partner at Harvest Consulting told the Times that there are two ways that good business ideas can flourish in a harsher climate.
The first is to downsize products. "When times are hard people will search for value, so the response should be to make smaller versions of the same things they always buy," he explained.
If altering the size of the product is not an option, companies should perhaps think about how to reduce the cost of production or the packaging.
Mr Surguy claimed it is possible to "value engineer" the goods - which could include making plastic cheaper or using cheaper ingredients.
The comments come after the British Retail Consortium claimed that "almost every sector" of the retail industry is feeling the effects of the credit crunch.