Codie SanchezFounder @ Contrarian Thinking

How To Grow A Business During A Recession #shorts

2 Nov 2022 · 1 min

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Codie Sanchez shares three recession strategies: sell affordable indulgences like lipstick, use scarcity instead of discounting to keep prices up, and market nostalgia and comfort. A cupcake business scaled by following this playbook.

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How do you crush a business during a recession? These are my three favorite tips from Candice, who built a business that now does 10 million cupcakes a day. Candice has three things you should do differently. First is the lipstick theory, which basically means in a recession people aren't going to be able to do the big luxuries, but they can buy that Chanel lipstick which still makes them feel good. How can you and your business give them something that's a low dollar priced item but expensive relative to other peers that they can feel good about? The second thing she does is is to resist the herd fear mentality. Everybody in recession goes to discounts. What if you go the opposite way? What if you create exclusivity and scarcity around your products so that you can increase prices because when you increase prices you increase perceived value? Third, flip the narrative. Instead of the doom and gloom and fear that everybody's talking about, where can you make people feel nostalgic, warm, safe, comfortable? Those three things are how you survive and thrive in a recession.