Working Wednesday: Hourglass consumers

Happy New Year to all! Yes, I took time off to be with family and friends and now back at it, writing a blog to assist business, especially those in small and medium size businesses, who may not have time to conduct their own research. 

I recently read an article about Walmart. Please don't stop reading just yet! Walmart may have its controversial points, but because America depends on consumer spending for its economy (ugh!), and they are everywhere, Walmart's data is excellent. They confirm what other economists have been saying: the middle class is disappearing. We now, for practical purposes, have an hourglass America.

Something Sam Walton, founder of Walmart, built his company on and which is still inspiring them today. In part...give people a chance to see what it's like to save money and live a better life. Walmart recognizes the poverty rates in this country, their core customer, and those in another part of the hourglass who have returned quicker to their former way of life before the Great Recession hit. They need to have inventory for both, for both are looking for value prices.

Now, you have gone through a couple of real tough years. You had to take a look at all levels of your business, which was hard. You came out leaner, hopefully more efficient and effective. The year 2010 was the stabilizing year and the results of your hard work started coming in during 2011. Now it is 2012 and maybe you are ready for the next step.

Many companies may not have their fiscal year match the calendar year, but it is still a good time to reflect and evaluate your goals, strategies, and actions. How are they coming along? And most importantly, do they take into account the hourglass economy? Do you offer a tier of services or products?

Many believe that one of the long lasting effects on the economic downturn will be smarter consumers. Just like this past Christmas season proved, consumers were out Black Friday, waited, and then came out the last week before Christmas because that was when stores offered the best prices. They are getting savvy. They are looking for value. They will be the same way with what you offer too.