First of all, you have to understand the situation of the market in which you are operating. Conduct market analysis and know the behaviour of all the competitors which are operating their businesses. You can gather the information regarding the market situation from the publications of the chamber of commerce and trade. Then, you have to understand the situation of the whole economy. You must keep in mind that you don’t have to become an economist to create an understanding about the economy. Just know the basics and try to understand the situation of the market economy. After that, you have to understand the behaviour of the consumers. Try to understand the needs and wants of the consumers and how they will behave towards the products and services offered by different companies during the recession.
After assessing the market situation, economic condition and consumer behaviour, you have to develop your business strategy. Pricing is the most important part of your business strategy during recession. Therefore, you must decide a price for your product or service which the consumer can easily afford. Don’t keep your mark up too high so that you can sell your products or services easily. Moreover, you should aim to earn more revenue by selling more products on low margin.
You must maintain the integrity of your prices. Don’t raise your prices after some time and keep your margin low. During recession, lowering the margin is better option than raising it. You can also attract customers by giving them different kinds of offers and discounts on the products and services.
It is extremely important for you to produce quality products. Never compromise on the quality of your product or services in order to retain your customers.