Tips for Producers and Consumers

During these hard times of recession, consumers as well as producers are facing lots of difficulties. In my opinion,the most important thing they have to do is to allocate money and resources wisely at the right time.I will present some specific ways for consumers and producers in this posting.
--------------------------------
Consumers:
Even thought consumers' incomes are affected during these hard times, recession is the time to buy.We can see that during this time, there are lots of sale campaign to stimulate buying power. Consumers have wonderful opportunities to buy undervalued goods. However, consumers have to allocate their spending wisely.I mean even the goods are on sale at attractive prices, consumers ought to plan ahead. They should only buy those necessities, can not waste money. Furthermore, they have to reduce their spending on those things such as clothes, utilities bills, entertainment... They could also save money in the bank so that they can earn a little more through interests. For instance, one thing consumers can to is that everytime they go shopping, they should only bring a particular amount of money and think about what they want to buy before that.
-------------------------------
Producers:
As a result of the price mechanism, when the demand falls, the producers then have to reduce their supply as well as the cost in order to ensure that their goods will be consumed. Producers suffer more than consumers during the recession. They have to thing how to decrease production costs, how to invest money to avoid bankruptcy. To ensure the efficiency in production, producers should not fire workers.It will make they are worried for their position in the company, hence they can not work at maximum capacity. I think that they can reduce their wages a little bit, but they have to gurantee jobs for workers. Workers would understand that during the recession, cutting cost is really necessary and they won't complain because they still have a stable income. Moreover, producers should also be more aware of customer services. This will enhance the satisfaction of customers and they will come to you during this time instead of your rivals. Producers can also offer some discounts to attract more consumers.For example, the Vietnam Airlines is offering a special price for the trip Hanoi-Singapore at US$100 instead of US$300,hence the seats are always fully booked.

Pham Duy Vu - 5Y