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Key Takeaways In an era of rising consumer prices, businesses must work overtime to ensure their value is still obvious to the people they serve.
Customers under economic pressure often default to buying new rather than maintaining what they have, even when restoration is the smarter choice. Businesses must bridge that gap in reasoning.
Backing claims with studies, testimonials and measurable results helps customers see your offering as the more valuable option, especially when budgets are tight.
There’s a simple rule for B2C companies that I see lots of founders forget: Anything that affects your customers also affects you. When they stop spending, you stop earning. With more Americans concerned about the cost of living than at any time since the 2008 financial crisis, that means businesses need to work overtime to ensure their value is still obvious to the people they serve.
My own company is a perfect example. Roof Maxx’s flagship product is an all-natural restoration treatment for asphalt shingles that can extend their lifespan for years while costing less than a brand-new roof. You’d probably assume this would be a no-brainer for homeowners in tough economic times, but we’ve never rested on our laurels when it comes to demonstrating our value. And as you’ll see below, it’s a good thing we haven’t.
The thing is, people experiencing financial stress don’t always make rational purchasing decisions. It’s not enough to have a product or service that can make their lives easier. You have to prove it.
Boots theory: Why people in financial trouble still overspend on things they don’t need
In his 1993 novel, Men at Arms, English fantasy writer Terry Pratchett observes through one of his characters that wealthy people often manage to spend less money than people in dire financial straits. To illustrate this, he reasons that while a really good pair of boots might cost $50, it’s also likely to last years longer than a cheap pair, which might only cost $10 but will probably also fall apart after one or two seasons.
In this example, the person with money to invest in a good pair of boots that can be maintained long term ends up spending less overall than the person who can only afford cheap boots and has to buy a brand new pair every year.
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