Click here to download the catalog as a PDF file. To view this site you need Adobe Flash Player and your browser must allow javaScripts. Go here to get the latest Flash Player. Ray Oeltjen Succeeding In Tough Times struggling economy and the likelihood of a fervently anti-gun administration has businesses across the spectrum of the shooting sports pondering a number of questions. What will this market look like by the end of the year, or two or three years from now? Will the extraordinary buying spree of firearms and ammunition continue or subside? Will all sales decline gradually or come to a sudden stop? Will the national economy continue to spiral downward? Should businesses scale back on expenses or should they pull out all the stops, while some segments of the market are hot? Any viable company in this industry must give serious consideration to the current situation and plan wisely for the future. Unfortunately, many executive teams find themselves being drawn in a direction that is neither prudent nor thoughtful. People, by their very nature, tend to be strongly influenced by negative news and the more negative the news, the more we are influenced. The time-worn media axiom, “if it bleeds, it leads,” is alive and well and our news sources relish the presentation of bad news because it “sells.” It is, A however, critically important to remember that the industry has been here before, survived and moved on to even greater sales and profits. The early ’90s found the shooting sports in an extended period of significant growth. Sales were up in every category of the Self-Fulfilling Prophecies “Any viable company in this industry must give serious consideration to the current situation and plan wisely for the future.” business and then, suddenly, in 1996, the market soured and the industry found itself in a serious downturn that had a profound impact on manufacturers, distributors and dealers across the country. Longstanding backorders were quickly filled before they could be cancelled, and inventories began stacking up in warehouses everywhere. Virtually overnight, many companies went from euphoria to something very close to panic. Fortunately, the companies that made up the heart and soul of the industry stayed the course, continued to create new products, maintained their advertising and promotion — and survived. It is sad and ironic that many businesses created their own self-fulfilling prophecies in the ’90s. Those who believed business would be bad in the future moved to cut expenses, including employees, advertising, promotions and product development. This made it more difficult for them to serve the very customers who paid their bills, and in an amazingly short time, their prophecy came true. Their business truly did decline, often causing them to feel justified in making the cuts they made, so they made more, which resulted in their ultimate demise. The counterpoint to companies pulling back during the last recession was companies that forgot the history of the market, and, for lack of a better term, “outran their headlights.” They were the manufacturers, wholesalers and dealers who thought the boom would never end and they overextended, especially in inventory. Many businesses failed because of a lack of prudence and historical perspective. Great Opportunity To Increase Market Share he harsh reality is that some companies will fail, or at best falter in 2009 and 2010. However, those companies that exercise common sense and do what they do best, better than they ever have before, will capture a much larger market share and come out of the recession in a more commanding position than they were before it started. One could make the argument that the next two years offer the greatest opportunity good companies have had in more than a decade to increase their market share. To be blunt: In tough times, winners win and losers lose. Calm, thoughtful, strategic planning, with a good understanding of history, can go a long way in avoiding “kneejerk” reactions to the existing business climate. It is critical for a business to understand their place in the market and what brings customers to their door. Increasing their value by 18 FEBRUARY 2009 T enhancing what they do best will serve to make them stronger, and ultimately lead them out of trouble. Pulling out of trade shows to save money, reducing visibility in advertising To Succeed In Down Times • Thoughtful, Strategic Planning • Avoid “Knee-Jerk” Reactions • Understand Position In Market • Strong Emphasis On Quality • Publicize Exceptional Aspects • Manage Business Wisely Read SI DIGITAL www.shootingindustry.com