EDUCATION CONNECTION
Current economic signals are all over the map. Some geographic areas are
money to advertise. This is a poor strategy for several reasons.
still seeing record growth while some
With many fab shops tucked away
are already slowing significantly. Some
in commercial areas, marketing is the
market segments are still strong (large
primary way to let the public know you
commercial projects) while some are
exist. Cutting the ad budget could lead
weakening (new housing starts in some
many people to think you may have
areas). Some forecasters predict a “soft
gone out of business. This is doubly so
landing” while others are predicting
if you also cut showroom hours in an
something more significant. Still other
attempt to reduce labor.
Taking the opposite approach of your competitors can yield strong dividends. Upgrade Labor Even prior to the pandemic, good people were hard to find. Lockdowns made that many times worse. Experiencing a reduction in orders, some shops have started cutting operating hours while others have
forecasters say we won’t have any sort
If the market is truly shrinking
of recession. It’s no wonder many shop
(lower overall sales level) and if the
owners are confused about how to plan
majority of shops cut their marketing
for the next few years.
to voluntarily leave for another job
already laid off some employees. When hours get cut, the first people
activities, then any shop that continues
The good news is this uncertainty is
are usually the best employees —
to advertise or even increases its ad
creating opportunities for shop owners
because they can more easily find other
budget has a chance to increase its
who recognize them and are prepared to
opportunities. If you have some current
market share. This means the shop that
employees who aren’t performing, the
continues to advertise can maintain its
increased pool of experienced employees
sales level during slow times. Executed
can allow you an opportunity to upgrade
well, this approach can even increase
your staff. If you have a competitor that
your share of the market because other
has cut back on shop hours, consider
companies think a market is shrinking),
shops aren’t marketing. When the
placing yard signs near that competitor
most business owners automatically start
market eventually turns around, as
or use geofencing to target specific areas
to reduce their operating costs. One of
they always do, the shop that increased
when advertising your current openings.
the first items to be cut is advertising.
its market share will grow much
Their logic is, if people aren’t buying as
more quickly than those who stopped
limited to the surface fabrication
much, then there is no point spending
advertising.
industry. Most businesses follow this
take advantage of them. Increase Market Share When a market shrinks (or when
16 • Vol. 16 / Issue 4 • International Surface Fabricators Association
This cost-cutting mentality isn’t
