BY WANDA KENTON SMITH

As we venture into 2023 , the cycle has shifted . Inventory is building and our marketing must follow suit .

At Boating Industry ’ s recent ELEVATE SUMMIT held in mid-November , Curtis Dubay , Chief Economist of the U . S . Chamber of Commerce , addressed respective audiences and launched his presentation with song lyrics from Blondie : “ The tide is out and I ’ m holding on …”

Dubay cited growing consumer concern about the economy over the past several months , plummeting to historic recent lows – even surpassing sentiment in the early days of Covid . Inflation is flaming the fire , with prices skyrocketing in several key drivers : food-at-home prices up 12.4 % annually over a year ago ; gas prices are up 20 % over last year ; electricity is up 14 %; and the double whammy including the sharp increase in interest rates . Even though wages have grown , inflation is outpacing it . The result is more consumers are now carrying larger revolving credit card balances .

The one surprise to this scenario and the silver lining is that consumers and businesses alike are continuing to spend . Black Friday set records and the Christmas holiday shopping was brisk . Employers are continuing to hire , raise wages and make capital investments .

The saving grace and the unusual anomaly in this scenario , says Dubay , is that consumers are continuing to spend , thanks to the trillions in savings stockpiled over Covid that is currently serving as a short-term buffer .

While no one can predict the timetable , there ’ s no doubt that the economy is going to experience some rocky bumps in the foreseeable future before inflation comes down . If the economy slows , Dubay suggests the feds may respond by easing interest rates as a jump start to recovery . However , if the economy remains weak into late 2023 and inflation remains high , the feds will likely keep raising rates through 2024 , which will likely create more severe conditions .

Dubay expects the longer-term outlook in 2025 and beyond should be a period of positive , robust growth , barring any unanticipated geopolitical crisis , global health epidemic or other unanticipated developments which could further derail the economy at any time .

Considering these issues and concerns , here ’ s the million-dollar question on the minds of business leaders in every camp : how do we survive and thrive during the looming recession ahead ?

While there are many areas to address on the business and operations front , one critical component involves marketing . It ’ s time to pivot on the marketing front by deploying smart recessionary strategies .

Time to market again . During Covid , business was banging the doors down and most retailers minimized their advertising investment . With a lack of product and the ability to sell virtually anything on the lot , the role of marketing took a natural down shift .

Today , it ’ s a markedly different environment . Now it ’ s time to shift gears and actively market once again . Consider inexpensive digital marketing campaigns that allow you to test market on a dime and adapt accordingly . Collaborate with your media partners for best practices . Try different approaches to see what messaging resonates and generates qualified leads .

Customer retention strategies . Customer retention is a major strategy required for retail success . The marketing and sales teams should actively reach out to customers and re-engage with relevant messaging and special offers designed to spark interest and reward loyalty .

Besides tapping and leveraging your various marketing and advertising platforms , it ’ s also important for salespeople to get off their laurels and get back to personal connections . Make phone calls , send texts or emails to former customers and / or prospects . It ’ s time to start professional selling again !

Avoid discounting . As the economy continues to grind , don ’ t panic at the first big dip and start slashing prices . Discounting devalues the product and creates massive confusion in the marketplace .

Instead , gather your team , brainstorm and develop other attractive incentives to incentivize your customers . Some ideas : extended or special service programs , guaranteed trade or buy-back options , attractive option packages , holding current year pricing on new model inventory , financing support , etc . What will get the attention of your customers and prompt them to buy now ?

Push and promote used product . Besides the growing new product inventory out there , don ’ t forget about the opportunities associated with used product sales . Reach out to your customers and offer easy solutions to help move their product through consignment programs . Offer attractive trade-in options to get them off the mark to buy up .

Now is the time to create a plan flanked with smart strategies and tactics that will allow your company to move forward and get ahead of the dangerous curves coming .

Wanda Kenton Smith is a former consumer and trade magazine editor ; awardwinning marketing consultant ; and national marketing columnist since 1998 .

14 february 2023 www . boatingindustry . com