Keep the faith in marketing

Retailers today are feeling the crunch as much as anyone. But my advice is avoid the temptation to minimize inventory and reduce marketing efforts as a way to trim the fat and cut costs. But this is not trimming fat, it's cutting good muscle from the bone.
Keep your shelves stocked.
A man in Dallas, Texas who owns a toy store told me he has increased his inventory over and above what he normally carries. This means he has the best selection over his local competition. Something he's eager to share with potential customers in his marketing efforts. As a result, he is enjoying higher sales this quarter over the same quarter last year.
A visit to a locally-owned clothing store recently revealed half-full racks and barren shelves throughout the store. I asked them if they are going out of business, because it looked like the tail-end of a liquidation. The manager answered, "No... We are trying to minimize costs by buying less inventory."
So the liquid assets are minimized, not only reducing the company's ability to offer their customers selection and size, but they have greatly reduces their collateral value in the event they need a shot-in-the-arm loan to get them through tough times.
Aggressive marketing is especially important when people are keeping a tighter grip on their dollars.
Think about this: Advertising mediums such as newspapers, outdoor, radio and cable and broadcast television are feeling the crunch as well. If you notice that the local paper has gone from a 36-page two section issue to a 16 pager, they need advertisers. Call you local advertising reps and negotiate for a series of quarter page ads over the next three months. You may get the deal of a lifetime.
Negotiate with everyone these days, especially the advertising sales reps. Be prepared to commit to a three to twelve month contract. You can save as much as 75 percent off rate card.
But remember, you better have something to offer your customers when they come through the door!