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Staff -- Gifts and Dec, 11/1/2009 12:00:00 AM
Checking Back In
Buyers' remorse is kicking in before buying, according to AP, as more shoppers abandon items at checkout, leaving retailers with more reshelving and lost revenue. Retail consultant Burt P. Flickinger III estimated that shoppers ditch at least one item on 25 percent of store trips. In the recession of the early '90s, it was 15–20 percent. In good times, it's more like 10 percent.
Lower credit limits also contribute to the abandonment: credit card transactions are denied if they go slightly over the limit, where in the past issuers would often approve purchases up to 10 percent over the limit.
Online abandonment is even higher: Forrester Research estimates as much as 59 percent of online purchases are dumped during checkout.
Glass More Than Half Full
More than half (55 percent) of small-business owners are optimistic about near-term business prospects, up from 45 percent in March, according to a study by American Express OPEN.
Of businesses reporting growth opportunities, 44 percent said they result from less competition.
Despite increased optimism, 63 percent of respondents said they do not think the worst of the U.S. economic difficulties are over, and 17 percent said they risk going out of business in the next six months.
Also, 68 percent of small-business owners said they are "stressed out" by the economy, and 31 percent question their decision to become entrepreneurs. Some 32 percent are using personal or private funds to manage cash flow challenges, up from 23 percent six months ago.
Fewer than 26 percent plan to hire, and 42 percent plan for capital investments.
Manufacturers are the most positive: 33 percent see the economy improving and expanding opportunities for their business, compared to 22 percent of retailers.
Shows Still Needed
In a recent survey by Forbes, 84 percent of executives preferred in-person meetings to technology-enabled ones, noting they are better for persuasion, leadership, engagement, accountability, and decision-making. They "overwhelmingly agree that face-to-face meetings are not just preferable but necessary."
"The Oxford Economics Study: The Return on Investment Business Travel" found that for every dollar invested in business travel, companies realize $12.50 in incremental revenue and $3.80 in profits. Both executives and travelers estimated that 28 percent of current business would be lost without in-person meetings. Over half also stated that 5–20 percent of new customers resulted from trade show participation.
Tradeshow Week's report "The Value of Exhibiting in a Downturn" found that 40 percent of sales from shows happen more than a year after the event, and 60 percent close more than seven months afterward.
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