Lessons from Hard Times
November 12th, 2008
Business Week presented a fantastic online article on the lessons a number of businesses learned when they survived the Great Depression. You can read it yourself at: http://images.businessweek.com/ss/08/10/1017_depression_lessons/1.htm but I’ve boiled them down into the points here:
· Get creative in your marketing
· Be open to new possibilities and innovations
· Think in the long term
· Hang on to your good people
· Improve your core
· Customer service is key
· Don’t abandon your brand; can’t shrink to win
Get Creative!
A.E. Schmidt was a billiards table manufacturer. One of the ways they got creative during the Great Depression was to send media to work camps, where billiards became the chief form of entertainment.
Bixler’s, a jeweller/silversmith, opened up a lending library to get people into their store.
D.G. Yuengling & Son, who survived by making near-beer during prohibition, sent a truckload of its Winner Beer to President Roosevelt when it lifted.
Be Open and Innovative!
Cornell Iron Works became open to work they wouldn’t normally consider.
Crane & Co. adapted the business to changes in the industry – for example, when stocks went from using certificates to being electronic, they shifted to security features for currency. D.G. Yuengling & Son diversified, using the owner’s shrewd business sense to determine good investments.
Don’t forget Google – their innovations in search technology is what allowed them to emerge from the Dot-Bombs and Y2K as an industry giant!
Think in the Long Term!
Harden Furniture refused to abandon efforts to promote their brand, knowing it was impossible to become succeed by shrinking away from the public. The company got smaller during the depression but their marketing didn’t.
Adapting to industry like Crane & Co. also always means to look ahead as well as being open to innovation.
Hang On to Your Good People!
Crane & Co. went to great lengths to retain its employees – when you lose people, you lose their experience, spirit and skills as well as their labour. In order to retain them during the Great Depression, they went from milling paper to painting houses.
Don’t forget: turnover has a high overhead cost, not just in compensation, time invested in interviews and training. Morale, experience and insight get lost as well.
Improve Your Core!
Marshall Elevator didn’t have the resources to diversify or expand like Yuengling & Son, so instead they focused on core competencies and offering top-notch customer service. Marketing is more than just advertising – it’s knowing what your customers want and being sure to provide it.
Martin Guitars might be a bit stodgy in their principles, but they’re reliable and when it comes to bills, there are no surprises. When times got bad and their competitors changed their policies, theirs remained the same –a steady, sturdy oak in the storm.
Customer Service is Key!
Bixler’s jewellers philosophy was to get and give the best value for the money, and that helped them build customer loyalty spanning generations.
Harley Davidson dealers like Rocky’s or Kitchener-Waterloo Harley Davidson keep close tabs on their customers’ satisfaction. By following up sales promptly allows them to address concerns and where they stand in the marketplace. Outstanding customer service is their driving force – and their clients, some of whom will drive two to three hours just to do business with a dealer they trust.
Don’t Abandon Your Brand
As mentioned in the Harden Furniture example, you can’t abandon your brand or shrink to win. When it comes to branding juggernauts, Apple is a prime example in these times – especially considering how close the company came to total failure until Jobs returned to the company. While the products themselves are good, the Apple brand itself is the true power – it’s consistent and omnipresent throughout anything to do with Apple, from the store to the distinctive iPod earbuds.
You might not have resources of Apple or its brand power, but without a brand, how can you distinguish yourself from direct competitors, future competitors and substitutions? A brand is your business identity. If you don’t have a clear brand, or don’t invest in it to some degree, you might as well paint yourself grey and change your name to “Generico” for all the good it will do you.







