Business In A Recession

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Repair Services Are Big Business In A Down Economy!

In a recession, people want to make the most of what they got, so they seek to repair more than replace their possessions. You can see that trend in people holding on to their cars for longer periods of time, buying clothing with classic lines and better longevity, and lining up at shoe and tailor shops to get that last bit of wear out of their goods. As money becomes tighter, it makes more sense to repair rather than to replace, and the lower cost of repair can also free up money for other purchases.

 

How Some Businesses Are Cashing In On This Trend

Some businesses realize that consumers will opt to repair or recycle before buying, as they feel their pocketbooks being squeezed. But, there is a solution for those companies that can figure out how to recycle and provide an upgrade at the same time. Some cell phone companies, for instance, might offer a trade back program that provides a discount to the person upgrading to another phone. The old phones are recycled for materials or refurbished and sold again. This provides several streams of income and a viable marketing strategy in a down economy.

 

Don't Own A Shoe Repair Shop?

It doesn't matter what business you are in, there are ways to use the old saying “reduce, reuse, recycle” to help the consumer get the most from their products or services while paying minimal amounts to upgrade. Anything that reduces the maintenance costs of an item is going to save customers money. So, the benefits of items that save customers due to lower maintenance costs can be a real selling point for upgrades. Can a product or service you sell be reused and for how long? Do consumers have the option to recycle once a product has met its lifetime usage? Any of these options can help you take advantage of the “repair” craze hitting the consumer's mindset.

 

Trading Up By Downsizing

Less is more is going to be the new mantra. If your customer can't afford to replace an entire item, but still wants the purchase, can you make your products and services available in smaller, more affordable doses? This even works for payment plans where people may want to purchase, but need layaway plans in a tight credit market. By making smaller payments over a longer period of time, the consumer still has the option to upgrade, but in manageable chunks. 

 

Your In Success

Moses Akinmuyiwa

Manage Your Credit

Building New Credit Habits

Manage Your Credit!

Repairing your credit entails getting rid of the negative credit report information and catching up on your overdue bills. This could raise your credit score but might not be enough to make you credit worthy again. However, to raise your credit score high enough to entitle you to a loan, you have to rebuild your credits. Doing so would only prove that you have the capability to handle credit responsibility.

 

Although it might be difficult to start, but once you achieve that momentum you need, you will be sashaying to a good credit score. You can always begin by developing the required credit habits.

 

The Do’s of Using Your Credit Card Wisely

 

Although many people are born without the skill it requires to use credit cards, it is important to learn the rules of the game. All you need to do is to remember simple do’s and don’ts of credit card usage and in time, you would welcome healthy spending habits in your financial life.

 

The first thing you do want to ever do is to use your credit card to make your everyday purchases, especially food, gas and clothing. It is bad enough not to have cash-on-hand but buying simple everyday items can develop into a habit wherein you may tend to substitute a credit card with cash. It is always advisable not to take your credit card out of your wallet for everyday purchases but instead use your cash or a debit card.

 

The next thing you do not want to do is develop a habit of making minimum-only payments. If you make minimum payments each month, you are only increasing the length of time it will take for you to pay off your debt. Additionally, it will also increase the amount of interest you could end up paying.

 

If you are one of those people who usually buy things that are way off budget, remember not to use your credit card to buy things you cannot afford. One way to get into debt is living off borrowed money. You might end up waking one day realizing you are so much indebt that you wish to return your expensive purchases back to wherever you bought them from.

 

The Do’s of Using Your Credit Card Wisely

 

Learn how to make correct decisions when it comes to buying items you need against those you simply want. Everybody knows what a “need” is and what a “want” is. Remember not to substitute need from the want and vice versa. If you are using your credit card wisely, it only means that you are being responsible in recognizing what things you need and which you only want.

 

Next, always let your creditor know in advance if you would not be able to pay your monthly payment on time. Since most creditors offer assistance with your payment if you give them a heads up, it is important not to simply forget about the payment for no reason at all. You can do this by simply calling your creditor, explain the situation and ask if they allow late fees to be waived.

 

Manage Your Credit!

Lastly, do not exceed with your credit limit. The safest is to stay within at most 30% of your credit limit. Because the major part of your credit score reflects on the quantity of debt you actually have, it is important to keep your balance low in order to preserve a good credit standing.

 

From The Credit Repair Blog

Yours In Success