What People Do To Cut Costs (And What Businesses Will Thrive)

Things people will buy even if they are tight on cash and the ways they try to cut costs (hence are "recession proof" businesses, if you play your cards right):

  1. Food. People will still buy the staples. That's why the rice problem is such a big issue here in the Philippines. People will actually line up to buy rice. Of course, now that there is less buying power, it's the cheaper rice that people want. Fancy restaurants, however, may suffer because less people will be eating out if they are almost broke.
  2. Clothing. I'm not talking designer clothing that would run up into the five figures. Second hand clothing shops enjoy better business nowadays because their wares are cheap. So do clothing wholesalers.
  3. Shelter. People still have to have a roof over their heads. Small condos and apartments will still have some business because people will still have to rent the place and would forego large houses with large rentals.
  4. Utilities. Electricity, water and communication tools (telephone, cellphones, internet) are considered essential nowadays. People will still use them, but will just think of ways to try to save on these.
  5. Toiletries. Soap, tissue paper, napkins, baby diapers. People will still have to buy these. They will, however, look for cheaper deals from wholesalers or look for alternative brands.
  6. Appearance. People still want to look presentable even if they are a little short on cash. Women will try to look for cheaper makeup or wholesale cosmetics, so that they will still look good with a lower cash out.
  7. Health care. People will have no choice but to seek health care services if they get sick. However, they will try to cut costs by going to public health care facilities rather than to private practitioners and see doctors only when sick and not for a wellness check up.
So, if you're looking to earn a little bit more in this time of economic downturn, do take these into consideration. If you can find something that people need, or perceive to need, even in hard times, offer a cheaper but quality alternative and you can find plenty of customers.

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