To survive, a business has to be aware of the rhythms or cycles of their industry. To thrive, a business must figure out a way to circumvent those cycles and grow in the lean times.
Car dealers have done this with their service departments. When people hang onto their cars and don't buy new ones, they need to get the older cars repaired more often. Many dealers now make more money in the service department than in the sales department.
Starbucks is testing beer and wine sales in some stores in an attempt to attract the crowds in the evening that they attract in the morning. Years ago, fast food restaurants started serving breakfast for a similar reason.
In another way, this has always been one of the challenges of commercial transportation. It is relatively easy to have a full load, whether its produce, widgets or commuters, going one way. The challenge is to have cargo to help pay for the return trip.
Rhythms or cycles are as much a natural part of the business world as they are the business part of the natural world. Nature uses the dormant winter cycle to rejuvenate, hibernate, and replenish. In the days of the neighborhood five and dime store, dormant cycles were the time when the proprietor could do inventory, make building repairs or go fishing. Most businesses don't have that luxury anymore.
In a world of quarterly earnings reports, 24-hour a day business news, and information flowing everywhere, there really is no time for a dormant cycle.
The challenge for businesses is to figure out ways to circumvent the natural cycles or rhythms of their industry. The opportunity for marketers is to find new reasons for customers to try your product or service, even when the traditionally wouldn't. This can be done by adding to your services, as Starbucks and McDonald's are doing. This can also be done by creating new demand for those products or services you are already offering.
The internet can help businesses do this. Retailers are no longer restrained to the geographic realities of their bricks and mortar location. Service providers can find people who are in need of their particular specialty with greater efficiency and at a lower cost. And if you are able to serve multiple markets, you may be able to complement the natural cycles of your current market, approaching year round demand.
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In another way, this has always been one of the challenges of commercial transportation. It is relatively easy to have a full load, whether its produce, widgets or commuters, going one way. The challenge is to have cargo to help pay for the return trip.
Rhythms or cycles are as much a natural part of the business world as they are the business part of the natural world. Nature uses the dormant winter cycle to rejuvenate, hibernate, and replenish. In the days of the neighborhood five and dime store, dormant cycles were the time when the proprietor could do inventory, make building repairs or go fishing. Most businesses don't have that luxury anymore.
In a world of quarterly earnings reports, 24-hour a day business news, and information flowing everywhere, there really is no time for a dormant cycle.
The challenge for businesses is to figure out ways to circumvent the natural cycles or rhythms of their industry. The opportunity for marketers is to find new reasons for customers to try your product or service, even when the traditionally wouldn't. This can be done by adding to your services, as Starbucks and McDonald's are doing. This can also be done by creating new demand for those products or services you are already offering.
The internet can help businesses do this. Retailers are no longer restrained to the geographic realities of their bricks and mortar location. Service providers can find people who are in need of their particular specialty with greater efficiency and at a lower cost. And if you are able to serve multiple markets, you may be able to complement the natural cycles of your current market, approaching year round demand.
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