Steer into the Slide
What is the first rule of economics? Supply and demand. The economic slowdown (I hate to say crash, I’ll leave that to the historians to decide) has affected printers, big time. Printers all over the country are shinning their spotlights, searching for hope, any hope, that this will soon be over. There are rumors of printers giving up, quitting, closing their doors, and walking away. There is gossip spreading about presses being repossessed.
Prices are being reduced to entice people to print, and often those bids are so low there isn’t any profit. It is reasoned that it is better to keep, or get, the press running than to make payments on a piece of iron that is generating Nada, zilch, bupkis. We have an overabundance of supply and a sharply reduced demand. It’s good for the buyer, but is a killer for the printer.
It makes sense. When companies are in the midst of trying to figure out how to weather the storm, they hoard their assets. What’s more important after all, printing a new brochure, or keeping your core employees, so that when the situation improves you still have a company left? Tough decisions.
steer into the slide
Everyone in advertising and marketing is shouting as loudly as they can that it pays to advertise during a recession. Companies, they say, who keep their names in front of the public come out of recessions even stronger. That does make sense, logically that is. It is exactly what you are taught in driver’s education, if you find that the car (the economy) is sliding, steer your car into the slide. Our natural instinct tells us otherwise, but steering into the slide is the only way to stop it, other than wrecking it.
The problem with recessions is that they are fear based. Emotions trump logic in this case. You’ve all heard the stories of people using worthless stock certificates to paper their walls and discovered decades later that the worthless stock was now a goldmine. How many potential millionaires tossed away their stock fortunes because of emotions?
The downward slide we are in, is fed by emotion. Who would buy a new car when they don’t know if they will keep their jobs? Or if they keep their job will they have to agree to pay cuts? Who will buy a new home, go out to a nice restaurant, or invest in a struggling company?
high hopes and low expectations
I have high hopes and low expectations of the new American president. May his infectious smile reassure us that we can pull out of this nose dive. May we learn to sneer at the doomsayers, and laugh in the face of negative press. I’m doing what I can. I’m spreading the word to a larger audience about Bill Ruesch Print Broker, and hoping to infuse my company with new customers. In the meantime, we’ve cut our expenses to the bone, hedged our retirment money, and are doing our best to remember to steer into the slide.
Tags: Supply & Demand