ASID Icon - January/February 2009 - (Page 28)

pursue other lines of work. In addition to the decline in the overall economy and housing markets, members pointed to stock market losses, the then-pending presidential election, and competition from retail stores or low-cost design services as reasons for the drop off in business. The news was not all bad, however. About one in ﬁve of the survey respondents expected to do as well or better in 2008 compared to the previous year. In the health care, hospitality and government/institutional sectors, work was steadier, in part because projects were planned or underway prior to the beginning of the slump. Some residential designers were beneﬁtting from increased demand for remodeling jobs as a result of the slowdown in new home sales. Another important factor was client loyalty, which was cited by about a third of the respondents, many of whom also said their clients had not been adversely affected by the economic downturn. Still, many of those who fared well in 2008 noted that new project requests were few and far between, and they were concerned about having enough work in the ﬁrst half of 2009. SURVIVAL STRATEGIES Faced with what may be the worst design market in more than 20 years, designers are resorting to a variety of strategies to maintain or grow their businesses. Some are choosing to hunker down and wait for the situation to improve. Others have stepped up their efforts to attract new business. Members who responded to the ASID survey had taken one or more of the following steps to adapt to the changing market: Scale back operations. Those who could reduced their expenses and/or overhead by laying off staff or reducing staff hours, more closely monitoring their energy costs, holding off on technology and software upgrades, and delaying non-critical maintenance projects. One member said she moved her ofﬁce back into her house as a lastresort cost-cutting maneuver. Alter the business model. Some members have taken advantage of the slowdown to rethink how they do business, examining where they spend most of their time and where they are making most of their proﬁt. Getting more businesslike about the business can save both time and money. Concentrating on marketing to high-end clients and selling more high-end products has been a successful formula for some. Others chose to focus on what they do best and to outsource or subcontract other parts of the work. Moving into new markets or diversifying the project mix has helped ﬁrms bring in new clients. Focus on customer service. While most members bemoan that as budgets tighten clients have become more demanding, some have turned this possible negative into an opportunity to distinguish themselves from the pack by offering outstanding customer service. They take the time to listen to their clients, work within their budgets, make the process simple, and show they can be counted on to do the job right. As a bonus, they claim that their efforts are rewarded with repeat business and referrals that all but eliminate the need to compete for projects. Market selectively. There is not much point in marketing to people who aren’t buying, members advise. They suggest getting in touch with recent and former clients to inquire about new business or referrals, networking within groups and clubs where you are well known, and re-crafting your marketing messages to appeal to niche markets. Also, keep watching local business developments that may signal forthcoming opportunities. Even though many businesses are cutting back, others will be preparing for the rebound by upgrading or expanding their operations. Increase your visibility. In addition to networking more, about one-fourth of the survey respondents said they had increased their direct marketing and/or advertising efforts in the past year. One in ﬁve took on more consulting as a way to develop new client relationships. About one in 10 started a Web site and/or joined an online designer directory or referral service. Others promoted their expertise by writing about design for a local newspaper or business journal, speaking about design to consumers and business leaders, or starting a blog. Burnish your brand. With fewer clients and fewer projects, competition will increase. Having a strong brand with a clear message is crucial. Make sure clients have a clear understanding of who you are, what you can offer, what value you bring and what is unique about your practice. Amount of Product Speciﬁed Increased or Decreased in 2008 vs. 2007 (by ﬁrm type) ASID Member Economic Impact Survey 2008 increased (Total n = 1660) Multiple responses allowed. decreased stayed the same don’t know 51% 53% 42% 54% 30% 28% 27% 14% 13% 8% 17% 12% 6% 8% 12% 18% Sole Practitioner Small Firm (5 or less) Medium Firm (6 to 25) Large Firm (25 or more) 28 icon january/february/09 the magazine of the american society of interior designers

Table of Contents Feed for the Digital Edition of ASID Icon - January/February 2009

ASID Icon - January/February 2009 Contents President's Letter Of Note Innovations Getting it Right Shadowing Design Bearing Up Industry Contrast Up Close Design for Life Environotes Inside ASID Grassroots Showroom Resource Guide/Advertisers Needful Things

ASID Icon - January/February 2009

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