Recession Proof

I hope everyone had a great Memorial Day weekend. Here in St. Michaels the weather was perfect and the tourist were plentiful. I love seeing the town come to life.

This first long weekend of the summer was a little unpredictable, with all the warnings of recession. I was concerned that we would experience a shortage of visitors as well as a shortage of buyers. I was pleasantly surprised on both counts. I'm not denying that we may be headed toward a recession, or as Mr. Buffett announced today, we are already in one, but like many of you I'm a bit tired of this fear factor that the media and even our own government continues to instill upon us daily. Yes, gas prices are climbing, but Europe has dealt with rising gas prices for a long time and the Euro is strong. Maybe I'm being naive, but I think recessions are the result of Cause and Effect.

Cause:Media/Politicians report we're in a recession, even though economically there is no proof.

Effect: People panic and stop buying goods.

Result: We fall into a recession.

It's a bit like "what came first, the chicken or the egg".

We can still support the economy and cut back. Set the thermostat on the A/C a few degrees higher, and close drapes/blinds to keep the sun out. Run your pool a few hours less each day. Make a list of items you need so when you do run errands you can be gas smart about it. Use coupons at the grocery store, but only for items you normally would buy, otherwise they cost you money. The TV is not intended to be background noise, if you aren't watching it, turn it off. Unless you are reading, lights are not necessary during daylight hours. These may be small changes, but overtime they will add up.

As a retailer I anticipated people cutting back...but not to the point that they stop shopping. So, when I bought last January for the summer season I made sure that I bought items that were of high quality, but more affordable for my customers. I did not bring in the $80.00 candle line, but instead I found one that cost $30.00 and I must admit I think it's even better then the more expensive ones. I bought in larger quantities to keep my shipping cost low and took advantage of show specials like a cap on shipping, free shipping or 10% off specials. I'm happy to report that I was able to pass these savings on to my customers. The only price increase has been a slight one on the French linens, due to the Euro exchange.

Have I recession proofed my business? I've tried to do what I can, but life goes on, and I would rather look at these times as a necessary economic adjustment that will result in positive change. Besides, I'm in it for the long run. And as the owner of the business in the above picture has so brilliantly stated "I refuse to participate in a recession".