Is the recession starting to recede?
Six reasons why I don’t think so.
by Clay Campbell
Reason # 1 I don’t know about the east and west coast but the folks here in fly over country
are in a holding pattern; much like an airplane circling above an airport waiting to land. They are holding
on to their money for many different reasons. Take me, for example, in this example I am pretty typical of
the masses across the fruited plains. 
I have saved about $2500 cash for a new guitar. I want a new guitar.
The one I play now is 20 years old.
My sweet wife said, “Honey you’ve worked hard, you deserve it, go ahead and buy it”. But I am still holding
onto the $2500 cash. It’s hard to let go of cash. It does not seem like you are spending money when you put
it on a credit card or finance it thru a bank. But when you lay twenty five 100 dollar bills on the counter
it has an effect on your emotions. (It’s called fear. Fear of being broke, and needing that money really
badly for something else)
Reason #2 we really did need another car; we bought one and paid cash for it.
Many people feel like since they have spent some money on something they really had to, they are
holding off on things that are not a necessity. Now the folks are plenty willing to spend money
if the must: like if the plumbing go awry, or the Heat/AC goes out, or the fridge goes ker-plunk,
or there is a fire, water damage, tornado, hurricane, the kids get sick, the wife gets pregnant
unexpectedly, you hit a deer, or something like that. (Once I, very stupidly, accidently drove my
car into our garage and did beau-coos of damage. It cost me $500 for my deductible and cost the
Insurance Company several thousand, and people laughed at me and ribbed me about it for weeks.)
Anyway, Americans still do have money, and they are ready and willing to spend money if they really
need to.
Reason # 3 Business owners are in a wait and see mode. They want to know if they are
going to be paying more in taxes, they want to more about the new proposed health care bill before they
add on, build a new building, or start up a new business. Business owners that have been selling expensive
jewelry, really nice expensive clothes, high end shoes, purses, Rolex watches, second homes, vacation
homes, a bigger boat, and home builders building big, new, fancy custom homes, are having to look for
some other way of making a living. They don’t see their businesses bouncing back anytime soon.
Reason # 3 Many of the radio stations, TV stations, newspapers, billboard companies, and all other forms
of advertising as well are experiencing a slump in sales. But more significant than that they are having
trouble collecting what is owed to them already. Advertisers in many cases just can’t pay their bill at
the local newspaper or TV station. They would, but they don’t have the money. It’s either pay the employees
and bank payment, or pay the advertising bill. “Well, ya know, sometimes you just gotta pay your basic
operating expenses and let everything else go.”
Reason # 4 People are upset on the health care issue - in town hall meetings like I have
never seen in my lifetime. Senior Citizens shouting down the politicians! Unbelievable.
Reason # 5 There is much unrest among the folks over the war in Afghanistan and Iraq.
Many people for it and believe in the cause; but there is a strong growing sentiment against it. Most
average folks out there are just not concerned that we would be attacked again like on 9-11.
Reason # 6 The unemployment rate is right at double what it was 18 months ago. The last
time unemployment was this high Jimmy Carter was president. Inflation was 13%, interest was 21%, and
unemployment was 10%. Right now, in America, over five million people that have been unemployed for
27 weeks or more. That’s a very sobering fact if you are hoping the recession is coming to an end soon.
I don’t see the recession ending until these 6 things change.
If you own a business, do what I do, and what all business owners do that are going to survive this poor
economy. Take 5-6 % of your gross sales and use it to advertise, advertise, advertise EVERY MONTH!
Hire a person to help you that really knows what they are doing. Find an advertising and marketing
expert or try to get the best bang for your dollar yourself. For a list of marketing experts take
look at these videos. At the very least get someone to do your copywriting for you that is unbiased
about your business. Business owners are uniquely unqualified to write their own copy because it’s
hard to read the label when you are on the inside of the bottle.
Perhaps now would be a good time to have a complimentary meeting with a Wizard of Ads Partner. Links to their websites and blogs are listed down the right side of The Wizard Times. Hundreds of their articles with free insightful advice can been seen at www.americansmallbusiness.com 2009 would be a great year to attend a class at the Wizard Academy 21st Century Business School in Austin Texas. What is the Wizard Academy?
See you next week.
Clay Campbell
Wizard of Ads
PS. Need help to attract more customers and grow your business?
