| Silver-lining lessons |
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| Written by Staff |
| Monday, 25 October 2010 11:36 AM America/New_York |
Some of the good things that have come from a bad time for business
We asked a broad range of people, from authors and artists, agents and distributors, to suppliers and retailers: "What has been the up side of the down economy?"
"I think the main upside to this downturn is that we are really relying on God to run our business. The other is questioning whether we need it or not. When we buy our inventory, we are making much wiser decisions-minding what God has given us to work with much more closely."
"It has allowed us to slow down and focus on specific areas in which we can provide a resource or service that can impact someone's life in a more remarkable way. We've spent a lot of time trying to be good at what we do and do those things as perfectly as we can and realized that this leaves very little room for us to improve. We've used this time to remind ourselves that it's not being perfect that is our goal-it's being remarkable with what we have that will add value to those we serve."
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Everyone knows that times have been tough recently in the Christian products industry, but there have been some positive things to come from the challenges of the economy and a changing marketplace.
"All economic downturns encourage businesses to become more creative. In 2009, we looked at our business and refocused our entire organization around on our core mission-helping content reach its destination. Not only did this offer greater efficiencies in this climate, it (also) allowed us to better serve our customers and help them survive this changing landscape. It's been one year since we reorganized all of our companies into Ingram Content Group, and our efforts have been rewarded in the success we have seen across the board."
"The down economy echoes the fact that for many what has worked isn't working any longer. The up side of the down economy is that it's reminded all of us that we are living in a historical time of change which is rolling out the red carpet for innovative thinking, creativity and ingenuity when it comes to business, ministry and leadership."
"The economy has affected everything in our world of Christian music and entertainment, but I think there really are a ton of positives. Ticket prices for concerts have come down, allowing more people to attend. ... Artists like us are finding power in coming together with three or four other artists for festival-like events at low prices: our Summerfest tour this year included Building429, Britt Nicole, Mikeschair and Finding Favour, all for $5. That was unheard of in the past, but today it is becoming the norm. To be truthful, it is requiring the whole community of touring artists to begin to walk by faith and live the words of their songs more ... and I think that is a great place to be. We literally don't know how many people are going to be at the door on these shows, but there is a different perspective and power present when we are having to rely on God to meet our needs. Artistry keeps getting better because labels can't keep signing everything and hoping something sticks ... and every artist understands that if they want to be around for the future, they have to give 100% in every moment of their career. How can that not be a good thing for the artist, and the consumer? We love it."
"People have had to examine where they are 'storing their treasures.' Books like Crazy Love and The Hole in Our Gospel have caused people to look deeper into their souls and search the question of how they are living their lives for Christ. People are also looking for answers as to how these economic times align with Bible prophecy. There is a lot of insecurity in our world right now, and more people are realizing that only God has the answer for their soul."
"During a bad economy, statistics reveal that Americans return to reading for pleasure. The surge in historical novels is, no doubt, linked to the fact that Americans want to get in touch with a simpler time, and novels allow that to happen much more than a shoot-'em-up movie or another bad reality TV show."
"I think the tough economy has made me a better buyer and manager. It forces me to be more selective, focused and creative. It is honing my business skills and forcing me to make decisions in a more mature way."
"From a supplier's point of view, the recent economic times have forced all of us to work smarter and to do more with less. During the good times, we all tend to become a bit lax in attention to detail of each and every aspect of our business plan and everyday operating procedures because there is enough margin there to cover a few actions that are detrimental to profitability. In these times, every penny counts toward keeping us all serving in the mission to which we have been called ... to spread the good news of Jesus Christ. Without profit, there can be no mission. I also think these times have done quite a lot to rein in the thinking of our youth in the general population. The last several generations (including mine) have been so blessed that living a frugal lifestyle has not been something that was taught. We now all see the fallacy in that mode of thinking and living. It will make all of us more thankful for the blessings God has provided and less likely to take those blessings for granted."
"We've had to reconfigure inventory levels, staffing and general expenses, but the real positive is that maybe our country has learned not to put 'hope and change' in one man or a political party. We pray that more will turn to the only 'true hope' that is found in our Lord and Savior. Revival of men's hearts is the 'change' this country and industry needs."
"This economy has refined who we are as an industry. Being stagnant is no longer an option, and those that have successfully navigated the changes have become stronger, more resilient and more God-dependent. Embracing technology, using the tools available to us and brainstorming with each other has redefined our character in this marketplace. The remnant Christian stores are well-positioned to make a difference in the lives of those we serve."
"The recession provided our company with a strong incentive to refine our business procedures. Since 2008, our cash flow is monitored far more carefully. During more prosperous times, we had less motivation for such introspection. These lessons and methods were developed under pressure, but we maintain our refinements as we now reinvest."
"The biggest change we have (faced) is in our internal sales opportunity. Many small to medium stores need to be contacted on a regular basis, so they can keep up with industry changes and see new products on a timely basis. Trying to understand their needs and keeping them in mind when considering any changes to sales programs is very important. Another thing is to not overreact and make sweeping changes in terms, new products and sales programs."
"When times are tough, companies have to reevaluate their business models, and as a result are open to new ways to collaborate and do business. That's driving new partnerships for us. You also look at how you can better serve your customers. This year we are holding Marketsquare Europe in Oradea, Romania, in a location that is convenient for our Eastern and Central European publishers. We are focusing on the rights buyers." 
"It has been a reality check for the shopper, the retailer and the wholesaler. As a Christian industry, it has brought us back to our roots, both as a business and a ministry. As retailers and suppliers, it has made us realize we must never be satisfied with any aspect of our business, but always be innovators."
"We see thousands of people a week becoming Facebook fans of our films-especially Fireproof and the upcoming Courageous. (It) tells us people are refocusing on what is eternal versus fleeting."
"People are re-prioritizing their lives around family and faith. They are seeing the bottomless pit of materialism and greed and finding joy in simpler things. Attendance has gone up (in our church), and the number of visitors in our services is up since the downturn in the economy."
"The down economy has forced people to concentrate on what matters most in their personal faith and relationships, especially on marriage and family. We experience this firsthand in the increasing demand for resources that help support those essential relationships-such as The Love Dare from the movie Fireproof, and the anticipated resources associated with the upcoming new movie from Sherwood Pictures, Courageous." 
"In a downturned economy, we hear from stores and reps that people are buying gifts for family and friends and less for themselves. Carpentree saw opportunity in that shift of consumer thinking because we love creating gifts. Always having been known for high-design wall decor, our brand jumped on the opportunity to create high-design gift product lines in lower price points. We offer a range of home-decor gifts, and have found this be a successful strategy. Listening to retailers, reps and each other has given us valuable insight that has been a win-win for everyone. 'How can I help you do what you do better?' has also become new company-wide theme. 'In many counselors, there is wisdom.' Prov. 15:22. From design to production to sales to customer service, we are opening our ears, locking our arms and helping each other to get through challenging times."
"Well, it's hard to get distracted by money and success when there isn't very much of either. Rather than chasing the latest trend or 'hot' category, publishers, musicians and authors are getting back to the good work of ministry. That's a good thing."
"We lost our house during the past few months-just before foreclosure, we sold it for a huge loss. That process cultivated a deeper desire to know God and walk more closely with Him. It also developed my sense of dependency on Him for everything. We may be renting again, but I know where my ultimate home and hope rests."
"There is an opportunity for retailers to reinvent themselves. (Fewer) shoppers means that we have to re-present ourselves to new people, people that have yet to shop with us. Now we are the ones who the need the shoppers, not the other way around. That being said, they should get service like never before because every one of them counts. Customer service and creativity should be our goals."
"First, we have started a Bible study in our store. We run the study while we are open. Besides having participants, we have customers take a break in their shopping to listen in. We also have been doing more buying with publishers and suppliers that are supporting independent Christian retailers. These companies are providing better margins, better terms and have a 'friendly' return policy. Also to improve margin, we have purchased more remainders and close-out products."
"It is no longer business as usual. Several of my accounts are increasing inventory (forget the just-in-time fiasco), longer store hours and programs to churches. Tony Hooyer at Vine and Branches in Anchorage, Alaska, is up again this year double digits, having implemented many of these ideas to survive in this new economy."
"An up side of this down economy:
"In tough times, such as a down economy, consumers turn to matters of faith. Retailers, knowing this about their customers, have refocused their day-to-day business toward building community within their stores via social media and/or other means, establishing a niche for themselves; growing their gross margins with products that 'big box retailers' cannot carry due to their business structure. Indies, while carrying the normal lineup of publisher products, which drives their day-to-day sales, then look for products that allow extra margin, effectively growing their business both in dollars and customer count. Other indies are going back to basics and reaching out to churches, looking to grow their business with the churches in their community who otherwise may order online. As a publisher, Thomas Nelson remains focused on delivering products that help drive their business on a day-to-day basis."