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So, what do we do?
Do we panic and lower our prices? Do we hold firm? How do we stay competitive? How do we even stay afloat?
Several years ago a restaurant owner who has been running a successful venue for over 18 years now told me "the way we did it was to always adapt and change. We change to bring in new business. We think up new ideas to expand our market. The customer doesn't want things that are stale. You always need to change and keep on top of things"
Flash forward to our current economic down turn (or is it tailspin?).
What have I observed?
I've seen a few places close.
I've seen a few places schedule fewer nights for dance or cut out dance entirely (they ascribe by the "tighten your belt" theory which does make sense).
Now that we're further into the economic crisis I've noticed something different. The businesses who have been around the longest, or with owners who have run (successful) businesses the longest- THEY are working to expand their market. THEY are advertising. THEY are making changes to set them apart!
They obviously had enough success before to help them weather the storm. But then in the midst of it, they realize they need that something special to help them stay afloat, to help them be the place the clients want to spend their hard won money.
In the last two weeks I have seen one place that never had live entertainment decide to start dancing soon to broker excitement and bring new people in. Another place that has always had live music is starting to have dancing soon, thus expanding their market. Another place just expanded and renovated another floor beautifully- changing their look from "nice elegant dinner venue" to "transport you somewhere else dinner experience".
How can we take these lessons and apply them to our own businesses?
How do YOU plan on expanding your market?
How can we encourage students to take classes and stay in classes?
How can we try to help build the belly dance community when people are needing to cut out luxuries?
How can we get parties when again people are cutting out luxuries?
How can we do all of this in positive, proactive ways that benefit the community, the art as well as our businesses in the long run?
Do we panic and lower our prices? Do we hold firm? How do we stay competitive? How do we even stay afloat?
Several years ago a restaurant owner who has been running a successful venue for over 18 years now told me "the way we did it was to always adapt and change. We change to bring in new business. We think up new ideas to expand our market. The customer doesn't want things that are stale. You always need to change and keep on top of things"
Flash forward to our current economic down turn (or is it tailspin?).
What have I observed?
I've seen a few places close.
I've seen a few places schedule fewer nights for dance or cut out dance entirely (they ascribe by the "tighten your belt" theory which does make sense).
Now that we're further into the economic crisis I've noticed something different. The businesses who have been around the longest, or with owners who have run (successful) businesses the longest- THEY are working to expand their market. THEY are advertising. THEY are making changes to set them apart!
They obviously had enough success before to help them weather the storm. But then in the midst of it, they realize they need that something special to help them stay afloat, to help them be the place the clients want to spend their hard won money.
In the last two weeks I have seen one place that never had live entertainment decide to start dancing soon to broker excitement and bring new people in. Another place that has always had live music is starting to have dancing soon, thus expanding their market. Another place just expanded and renovated another floor beautifully- changing their look from "nice elegant dinner venue" to "transport you somewhere else dinner experience".
How can we take these lessons and apply them to our own businesses?
How do YOU plan on expanding your market?
How can we encourage students to take classes and stay in classes?
How can we try to help build the belly dance community when people are needing to cut out luxuries?
How can we get parties when again people are cutting out luxuries?
How can we do all of this in positive, proactive ways that benefit the community, the art as well as our businesses in the long run?
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Re: Help, help, the economy is falling and it can't get up!
Mon, January 12, 2009 - 11:55 AMI do not believe that operating from a scarcity mind set will help any business to grow. I think that the best way to help your business to succeed is to be confident in its quality and potential. At the same time, we must take into consideration that some people ARE operating from a scarcity mind set, and are reluctant to spend money. In the town I live in, the economy is very dependent on tourism, and so many businesses and individuals are suffering. I work at a well established studio that had to cancel four classes already this year because so many students have pulled out. Is it better to have 2 students paying 20 bucks a class or 7 paying 15? At this point, I'm voting for 7 at 15. So far charging a little less for my classes than I normally would has worked just fine for me. So far I have been blessed to have a good turn out, but I bust my ass promoting my class on the regular, and do my best to address the needs of my students. I also make it a point to practice for two hours a day in order to continue growing as a dancer myself so that I can keep my students challenged as they grow.
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Re: Help, help, the economy is falling and it can't get up!
Tue, January 13, 2009 - 7:08 AMI would love to hear what other people are doing to get students.... I live in a little college town and I've seen two restaurants and (my favorite) specialty food shop close all just within December/January. I'm closing my studio at the end of this month and moving my classes to a church building (and it was hard to find one that would let me...I'm not sure they would have said yes had i said "bellydance" rather than "ethnic dance/Middle eastern dance" but hey, whatever works)
Anyway, I have all of my classes in a row now (3 hours worth) and I'm offering discounts if they want to take more than one class. Also, I used to have "punch cards" for 4-10 classes but now, because I need a more secure budget/I need to know when I'm getting paid... I'm changing it so that they will only be offered cards in 4 week punches AND they can only make up one class. So basically it's a 4 week punch card that expires after the 5th week. I'm hoping that this 1)keeps them coming to class regularly and 2)gives me a steady amount each month that I can expect and budget for
...My new year's resolution was to make myself and my teaching more organized. I made a fun new warmup and printed a 20 week syllabus (my class is just ongoing) and gave it to them all last night. They were excited about it, and class went well. I'm hoping this "rejuvination" of my class will keep them inspired and excited about bellydancing, even when it's freezing and they don't want to leave their cozy houses to come work out =o)
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Re: Help, help, the economy is falling and it can't get up!
Tue, January 13, 2009 - 9:09 AMWe're growing and getting more support in the recession, actually.
I direct an outdoor circus with a monthy gig at a popular bar in town. Delirium tribal is a part, and we also have fire performers and a hula hooper. We perform out in the parking lot for a take of the bar and tips, and there's no cover. Season runs from March to October.
We found when gas prices went up and people started staying closer to home and watching their wallets, our crowds soared and our tip basket started overflowing. We started setting records for the bar. People can't afford to go to disney world this year, so they're checking out what's in their community. We had a great season, and a lot of it turned into students or contacts for networking and getting other gigs. My classes are holding on ok, but I allow drop ins, which helps. The dance company and the extra shows we put on with guest artists are still doing extraordinarily well. There are a lot of big workshops in the area taking a bye this year, but several of the strongest ones still seem to be doing fine.
That's what I've noticed anyway.
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WIP
Tue, January 13, 2009 - 3:51 PMMore students this month without having done anything special to trigger this. Certainly not due to current crummy temporary studio! Class prices the same, prices for private gigs and private lessons up slightly but since our marketing approach is always based on folks wanting to hire Ruric-Amari and Samovar rather than generic bellydancers, there is no credit due to improved tactics there. We are also very aware that this disconnect between the real economy and what is happening with our students and customers can be a fluke so I hesitate to offer ourselves as a model in any way. I simply report what I see this month.
Motto for the new year is definately 'a penny saved is a penny earned' which translates into faster and more efficient use of data about our current customers, careful planning of solo and company costumes to use existing fabric stash, and a focus on eliminating waste and mistakes. Doing this should help us come up with our business strategy for surviving 2009. -
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Re: WIP
Wed, January 14, 2009 - 9:28 AMIf students have gone up this month, I would speculate that New Year's Resolutions have something to do with it. At this time of year, it seems like a lot of people make resolutions to a) do something to lose weight or improve their health, or b) to try something new they've never tried before (like bellydancing). -
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Re: WIP
Wed, January 14, 2009 - 10:31 AMWe are all going to have to bite the bullet for a while and stay away from sharp things and sedatives, because things are bad and they will be for a little while longer. There is hope however. We have a new administration in Washington and the climate is changing. Lots of noise about a "New WPA" type of programs. Any student of history and especially history of the arts knows that the WPA never made anyone rich, but it did help people survive and it encouraged pursuit of the arts. There's even a lot of saber rattling, pushing for a new cabinet position- Secretary of the Arts. It is being promoted by artists, but it is not falling on deaf ears in Washington. I am hopeful, but I'm also not foolish. Things are rough and they will be for a while. At least the plight of the working artists in the US at least is beginning to be realized and that's the first step.
Historically, when people lose much of what they are comfortable having, they turn to their creative side and start living in their art sides of their brain. It can't stay like this forever, but it's not going to get any better overnight. I know of many top dancers that have dropped some of their gigs to take on office or retail jobs just to get by. It's completely understandable, but sad that we are at that place.
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Re: WIP
Wed, January 14, 2009 - 11:45 AMYep, my classes usually boost this time of year thanks to resolutions. This year, not so much as in past years...
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WIP
Wed, January 14, 2009 - 3:16 PMWe shall be doing our best to hold on to them. -
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Re: WIP
Thu, January 15, 2009 - 7:00 AMRegarding classes- the yoga center where I teach- their advertising put a little extra emphasis on the stress relief benefits; something people need in times of crisis. Thus far the center is seeing the usual January influx of returning students and new people.
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Re: WIP
Sat, April 4, 2009 - 8:27 AMApril update: our usual small increase in students each month continues. Moving from temporary studio to permanent one didn't seem to affect this trend one way or another. We raised our beginner class prices but also expanded the class offerings, I'm guessing one counteracted the other.
Found some interesting info on a credit union web site. Admittedly skewed because of relatively small sample number and because it would be answered by folks who already use the internet, if only for banking, but:
How often do you use the phone book to find businesses?
30% - Never
35% - Rarely
27% - Sometimes
06% - Always
Total Votes: 1712 -
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Re: WIP
Sat, April 4, 2009 - 10:13 AMNice little quote from Jeffrey Gitomer (regarding sales)
"Victory does not always go to the swift (hare vs. tortoise), victory does not always go to the powerful (David vs. Goliath), and victory does not always go to the lowest price (Yugo vs. Mercedes)."
Another...regarding perspective on price vs. value.
First determine what your customers want (from a belly dance class, from a belly dance performance). Write a list! Figure out what is OF VALUE to them as a belly dance consumer.
Next realize
"If you are able to get him or her those or even one of those items, how significant is price? The more VALUE you provide, the less price matters".
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