{"id":46214,"date":"2020-04-06T01:04:35","date_gmt":"2020-04-06T06:04:35","guid":{"rendered":"https:\/\/michaelhyatt.com\/?p=46214"},"modified":"2020-04-06T01:04:35","modified_gmt":"2020-04-06T06:04:35","slug":"avoid-this-temptation-in-economic-downturns","status":"publish","type":"post","link":"https:\/\/fullfocus.co\/avoid-this-temptation-in-economic-downturns\/","title":{"rendered":"Avoid this Temptation in Economic Downturns"},"content":{"rendered":"

Business leaders are asking one question right now: How can my business survive the economic upheaval generated by the COVID-19 crisis? The way to do that is to help the economy keep moving. And the way to do that is to keep providing value that customers are willing to pay for.\u00a0<\/span><\/p>\n

To be frank, not all businesses can or will survive. That\u2019s the hard truth of it. But many, many others will if they respond with the right strategy now.<\/span><\/p>\n

One seemingly popular solution has emerged, especially among entrepreneurs. That is to give away all you can for free. After all, the world is in a panic, the economy is rollercoastering, and the future feels uncertain. Anything we can do to lighten the load of our friends and neighbors feels like a good idea. Plus, it may create the goodwill that will cause customers to remember you when things improve.\u00a0<\/span><\/p>\n

But here\u2019s the fault in that thinking. The economy depends on people creating value and other people recognizing that value and willingly paying for it.\u00a0<\/span><\/p>\n

The Negative Spiral<\/h3>\n

During a time of economic crisis, many people will have a diminished ability or confidence to pay for goods and services. As a result, there\u2019s less spending. That creates a negative feedback loop which further dings people\u2019s ability and confidence to spend.<\/span><\/p>\n

Let\u2019s say Instacart or Shipt decides to wave their membership fee, eliminate their markup, and stop accepting tips for their shoppers. After all, they know it\u2019s tough to get groceries right now (even dangerous!) and they want to help the public by making it easier.\u00a0<\/span><\/p>\n\t\t