Scholars and TV's talking heads have eloquent ways of saying that the economy isn't in great shape, but I think Bette Davis in All About Eve hit the nail on the head. "Fasten your seatbelts. We're in for a bumpy night." Bette could really deliver a line and get her message across – you may not like what is going on, but you're just going to have to deal with it. So I say to you, consumers are in a bad mood and they are tightening their belts. What are you going to do about it?

This isn't uncharted territory. Experts have studied how successful business operators have thrived during recessions. They have found that people in business fall into two categories: those who try to save their way out of it and those who look for opportunity and market their way out of it. Those who go the marketing route offer their customers some empathy about customers' economic situations, but when selling, they emphasize "value" over price. When faced with purchasing choices, consumers don’t always focus on the cheapest price. Eventually most people adjust to rising prices, even though they don't like them. When empowered with

information about the value and benefits of an item, consumers are given the opportunity to decide what is best for them. Suddenly the decision making process is transformed from "I have to buy the cheapest thing possible" to "This may cost more, but it makes sense for me."

I was surprised to find out that even marketers of gasoline have found this to be true. NPD Group analysts have found that in the past year consumers have often cited product performance as a reason to buy a certain brand of gasoline. Consumers are deciding that if they have to pay more, they might as well go for quality.

So there is a bit of good news out there. And don't forget, beer is still an affordable luxury.

Sincerely,
Dominic Origlio