March 26, 2009

What Are You Cutting?

In case you were not aware, the global economy is in a tight place right now. The Italian economy is affected just as much by the global economy as the rest of us are. It seems that the Italian economy is largely based on the influx of American tourism dollars. As a result of the down economy, fewer Americans are traveling abroad to Italy right now. Of course fewer tourism dollars means more problems for the Italian economy.

Right now, in an effort to return the flow of tourism dollars into the economy, several of the luxury hotels and other areas of interest to travelers are reducing rates for the good and services that they provide. From a pure profit and loss perspective, this seems to make sense. Reduce rates, make things more affordable, and then people should be more willing to travel.

However, rates are not the only thing that these businesses are cutting right now. They are also cutting back on what they deliver. Again, from a pure profit and loss perspective this seems to make some sense. If I reduce the amount that I charge, then I need to reduce what I provide in order to yield the same profits that I expect.

The trouble behind this is that they are sacrificing the brand that they have built in order to accommodate the market. Unfortunately, this is how many organizations are reacting to the current economic conditions. Eventually, the economy will make a turn around. And when it does, customers will once again be willing to pay substantially for luxury hotels and spectacular getaways. Sadly though, many of these businesses may no longer be around to enjoy the fruits of restored economic prosperity.

This economy provides the perfect opportunity for your organization to create powerful word of mouth epidemics like never before. Discover how you can provide service that is superior to what you currently provide, especially when times are tough. Your customers will know that you are committed to providing out of this world service, even when it may come at a loss of profits for you, and as a result, they will be more willing to continue to use the products and services that you provide in years to come.

Selling out your vision and mission temporarily will only get you by temporarily. Optimistically making an investment in the future will help to ensure that you are still around to serve in the future.

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