Businesses that actually do better when the economy is down (collection, contractor)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I read (about 10 years ago) that gyms have more people joining during unemployment, since those people have more free time. On the other hand, you do have to pay to join. I belonged to a gym starting when I got laid off and I recently quit after 10 years because I didn't want to pay the $34 any more. That says a lot about my empty, pathetic life.
I wonder if places like the 99-cent store actually do better when things are tight. There's probably a joke like: people who used to shop at Macy's now shop at Target - people who used to shop at Target now shop at the 99-cent store. But I can't think of an entire joke.
Another factoid: when people cut costs, they stop going to the dentist.
Dentist is obvious. Three years ago my dentist commented "They need to get the unemployment down so more people come into my office." I heard that Walmart benefits from depressed economy. Multilevel marketing companies, if not their contractors, make more sales since more people try to make it in that longshot occupation. Resale clothing stores. A few home remodelers, as when you can't sell and move to a better place, improve the one you have. Shoe repair shops, if you can find one.
My friend sells Mary Kay cosmetics, and she says that even in a poor economy women will buy lipstick because it is relatively inexpensive and even though it is a small purchase, it makes them feel great.
Debt collection is booming business during a recession as more people get behind on their bills. Also, law firms that specialize in foreclosure and debtor-creditor law. I suppose a business that specializes in so-call inferior goods and services would be well in a recession as people stop eating caviar and start eating more ram and noodles.
Resume writing services probably do well as people out of work may request that service to find work. I wonder if clothing stores specializing in business suits do well during a recession as out of work individuals may need a new suit for job interviews?
I suppose counseling services and psychiatrists do well in a recession as unemployment-related mental issues rise (such as clinical depression). On a related note, there is probably a rise in demand for anti-depressants during a depression. So any company that manufactures antidepressants probably does well during a recession.
Last edited by Just_the_facts; 06-29-2013 at 02:10 PM..
I wonder if places like the 99-cent store actually do better when things are tight. There's probably a joke like: people who used to shop at Macy's now shop at Target - people who used to shop at Target now shop at the 99-cent store. But I can't think of an entire joke.
I have thought that downscaling would benefit the bottom of barrel places. You can't go lower than downtown Las Vegas for a vacation, you can't go lower than the Dollar Store, etc.
Surprisingly it doesn't actually work that way as much as you think. The guy who used to go to Burger King now makes a sandwich at home. The people with money still go to Chick-Fil-A.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,576 posts, read 81,186,228 times
Reputation: 57813
I had a sign business that did benefit from a rush on "Going out of business sale" banners and commercial real estate "for lease" signs, but it wasn't enough to make up for the loss of new home development signage.
I have thought that downscaling would benefit the bottom of barrel places. You can't go lower than downtown Las Vegas for a vacation, you can't go lower than the Dollar Store, etc.
Surprisingly it doesn't actually work that way as much as you think. The guy who used to go to Burger King now makes a sandwich at home. The people with money still go to Chick-Fil-A.
Alcohol sales usually go up in a recession.
Actually during the recession Dollar general and other such stores did well. Also under recession still alcohol sales are down in Europe. Movies normally do well but now many are using Netflix and other like Redbox to watch movies cheaper. Many have also cut paid TV to go to antenna and stream more this time. Its been long enough of a recovery that people have moved to eliminating debt and increasing savings if they have a job. As the recovery lengthen more they are adjusting to spending less and cutting becomes almost a habit once they see the effect on wealth. Lessons are always learned a in recession and long ones change habits of many.
Funeral Homes / Mortuary. Steady business which often goes up in volume during depressions. Though I have no knowledge of how 'profitability' does during down times. I surmise more people may opt for minimums on the extraneous things type of casket et al.
What is America's drug of choice? That would be alcohol, and I hear breweries and distilleries have been doing exceptionally well for the past 5 years. Many microbreweries are even raising their prices. Some ingredients are more expensive, namely corn. On the other hand, demand is likely a reassuring measure suggesting that raising prices will not drive away customers.
The bars seem packed around these parts. Seems many bar owners aren't complaining. Then again, in a down economy, many prefer to do their drinking at home, out of necessity.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
