A common theme we hear during the economic meltdown is that we need to get the consumer buying again, that the economic recovery depends on the consumer. True or not I can’t escape the fact that in theory people only buy what they need or truly want. So if you want to get them to buy more just produce something worth buying. But there’s the rub, for too long people were buying stuff they didn’t really need. Flush with cash and feeling rich they’ve been feeding superficial desires or simply keeping up with the Joneses. Now money is tight and they’re questioning every purchase and not buying as much. Does one really need a new car every 3 years? Does every mini-van also need a DVD entertainment system?
Those who subscribe to the market theory might believe that yes at that time they did need those things. And since they’re no longer buying, they obviously no longer need them. At any rate as Warren Buffett has stated, people’s buying habits have changed.
Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.
So now not only do we need to get the consumer buying again, we need to change his habits back to what could be considered unhealthy behavior.
Buffett said the nation’s leaders need to emphasize a consistent message, and they should support President Barack Obama‘s efforts to repair the economy because fear is dominating Americans’ behavior.
Whatever we do we have to get the consumer buying again. But I still can’t escape that in theory I buy what I need or truly want. What I don’t want is to be ripped off. I recently flew to Vancouver and had the worst experiencing flying. As Seth Godin pointed out about the airlines, they simply do a terrible job of servicing the customer. And it isn’t just the airlines that have forgotten how to make a product I want to buy. My credit card company charges an extra foreign transaction fee. These same type of predatory business practices have made at least me and maybe others gun shy about buying. Rip me off and I’d rather just keep my wallet closed. I’d rather just not fly than get charged extra for my bags.
Maybe we should worry less about trying to conjole the consumer into buying and get back to nature, build something people want and are willing to buy.
