Augusta commercial manager talks recession tactics - BikeBiz

Augusta commercial manager talks recession tactics

Frank Moons outlines the threats and chances to be had in dark financial times
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Augusta Benelux B.V., commercial manager, Paul Moons has spoken to dealers via the Greyville website on the topic of 'threats' and 'chances' during economic downtime.

He outlines the threats and chances as these:

Threats:

  • A lot of people will have less money to spend (perhaps at least ten per cent of your customers!)
  • People will be a lot more careful when spending their money.
  • People have the tendency to strengthen each other's negative feelings.
  • Your colleagues will be under pressure and probably will lower their prices. (Will they also earn more?)
  • If you do that your margin and probably your turnover will decrease! 15 per cent discount means selling 15 er cent more to get the same turnover (and that is without talking about profit).
  • Internet purchases purely based on price will increase.
  • Some of your suppliers will do business with your colleagues (who discount their prices) and internet companies to keep their turnover at the same level.
  • Banks will not provide credits and initiate less new credits.

I am convinced that you probably have a lot more arguments. I am also able to do that, but it is far more interesting to look at our possibilities and chances.

Chances:

  • People who are now unemployed will have more time for cycling (or other hobbies).
  • Added value is now important (attention to your customers, good service, a cup of tea or coffee are just a few examples).
  • Customers still have the "money" to buy a new bicycle. We only have to “help” them with their buying decision.
  • The government is stimulating riding a bicycle more and more.
  • Customers will put off purchasing a car, and will ride their bicycle more often. Because of this there will be more money available for the purchase of a new bicycle.
  • People who already ride a bike will still buy bicycle parts and accessories to keep their bike up-to-date.
  • The bicycle industry will have less problems. Industries such as the auto-mobile industry, kitchen industry, furniture industry, and other luxury brands will be facing a much tougher time.

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