When a Recession Becomes Good News

The current economic picture certainly looks gloomy to many businesses. All you read in the newspapers are bankruptcies, foreclosures and layoffs. The days of spending extravagantly, going to expensive boutiques to avail of specialty services, or shopping for designer clothes, don’t happen as often anymore. Or at least, gone are the days where you have to own something brand new.

Thus, as the old saying goes, that one man’s misfortune is another’s opportunity. This condition has helped many small businesses in America thrive. Small businesses that are thriving includes thrift stores, shoe and bag repair shops, as well as stores selling quality second hand products such as books and clothing. Many of these stores are reporting increased volumes in overall sales as well as increasing revenues.

People are more cost sensitive and value more the products they buy, or the services they avail. Another business category that has reported increased sales volume is the auto repair shop as people are having their cars fixed instead of buying new ones. People are also less conscious about the repair shop that they go to. The auto mechanic at the dealer is not necessarily better than the auto mechanic at a local shop. For these business types, a recession is good news.

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