ARE YOU A FARMER OR A HUNTER?
As much as we’d like to see the cost of money ratchet down every time the Fed reduces its prime rate, it is not happening. The economy by government reports remains strong. That’s not what the man on the street thinks, but that’s what the indexes show. In fact, the 30-year fixed mortgage was at 7.645% as of November 15, 2024.
This is not good if you’re someone who relies heavily on financing. What to do:
- PIVOT: While rates are on a downtrend, we all must survive until rates are down another one percent or so. This means concentrating on those parts of your business that are not so rate-sensitive. People aren’t moving, but they are remodeling and renovating.
- PROMOTIONS: If possible, make some noise with a special or a loss leader. The big brands do it: Look at McDonald’s $5 meal. That was meant to be a “July Only” promotion, but it still continues. We must do what it takes to get through the tough times.
- ADVERTISE: If you are not already, get on Page One of a Google Search with Google Ads. It’s time to advertise. Put your name in front of the prospects who are in the market to buy. They’re out there. It’s time to hunt them down.
- HOW MUCH OF YOUR GROSS SHOULD YOU SPEND ON ADVERTISING? According to most industry reports, Google says 7–11% of your gross sales as an example, should be allocated to advertising. Now is the time to dip into retained earnings and/or savings to increase your market share.
Now if the time to sharpen your pencil while many of your competitors are hurting. Get more than your fair share. Give your prospect what they want. They’ll do business with you.
Onward & Upward!
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