Credit Crunch and your Pet Business
By Doug Bertram • Jan 22nd, 2008 • Category: General Business, Pet Business NewsWith all the news on TV about impending economic doom and gloom I thought it important to discuss how this news impacts the pet industry.
Recent indicators show that the pet industry, while not impervious to the overall economy, has the ability to rise above the fray - and the current trends are a good case in point. The spending trends are such that the industry looks set to continue to prosper through 2008. This trend, however, is going to be difficult to maintain if the general economic conditions deteriorate into 2009 and 2010.
There has been plenty of talk about a “credit crunch” in the past 6 months, as subprime lenders feel the effectives of years of loose lending guidelines. While this may be a form of a “credit crunch”, it certainly isn’t the more dangerous liquidity crisis that stems from questionable monetary policy. This is actually good news for your pet business because it means people will still have the cash to spend on their pets should they want to.
A liquidity crisis would be far worse than a credit crunch for petrepreneurs. During a liquidity crisis, pet owners would find that cash is just more difficult to come by and purely discretionary purchases, even for their pets, would be negatively impacted. Tough cash situations usually means switches to lower priced food products, delaying travel (no sitting serviced needed), home grooming, and purchasing fewer toys and treats for their furry family.
The 2007 credit crunch could be the first of several waves of poor economic news to hit us. While we can take comfort in the knowledge that the pet industry is beating the current general economic trends, we should use this time to strategically position ourselves and our businesses for success and profitability.
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Doug Bertram :: I love what I do -- Helping Other Pet Fanatics Turn Their Passion For Pets Into Outrageous Lifestyle Income!
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Doug, I really enjoy your emails. I’m starting a pet jewelry company, and was wondering can you recommend a good email service.
Thank you.
Shari
As a pet sitter this bad economic news is troubling as with less credit people may not be vacationing as often as normal. One way that I see to combat possible lower travel rates is to diversify your pet sitting business by selling pet products including foods and toys. These items (especially food) will always be needed by pet owners - and as you suggest are covered by a pet owners liquid cash instead of credit.
The pet owners that make up 70% of total pet spending are couples with no kids and high incomes. I believe that this demographic should continue to have extra cash to pamper their pets.
Danielle
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I always think diversification is a great asset in times of uncertainty.
For any readers wanting a great resource for starting an online or “virtual” pet business check out Danielle’s site at http://www.virtualpetbusiness.com/ (no affiliate link - just good resource materials)!
Doug
Hello Shari,
I use and recommend AWeber for autoresponder and blog announcement activity - check out my Resource Guide section and head on over the the info page for AWeber.
Doug