NAID Briefing

While some resist declaring the economy has entered a recession, there is no denying that it is slowing dramatically.

Even though I have no profound insights into what this specific cycle may mean in the long term, I do know from experience that cyclical downturns, more often than not, actually represent an opportunity to grow and to get more aggressive in sales and in pricing.

First, as potential customers cut staff, they are more likely to outsource functions like shredding. Also, they may move to smaller offices or get rid of expensive storage areas, both of which can lead to more shredding opportunities.

The rising fuel costs associated with the current economic downturn will reverse downward pressure on service fees. And, as lower recycled fiber prices follow, signs of which are already showing, service fees will rebound further as paper-driven opportunists disappear.

Lastly, and maybe most significantly, many competitors will react to the downturn by reducing their sales and marketing efforts, creating a more open field for those with the stomach to attack instead of retreat. As competitors cut corners on service to save money, the yield on additional marketing is compounded.

Successful operators understand that an economic downturn is a time to push harder, not to slow down.