Lessons Learned From Lemonade Stand
Lemonade Stand, the old Apple II game that taught us all how to run a business is out for iPhone/iPod Touch. We won’t presume to tell you that running a business is as simple Lemonade Stand, but it reminded us of something relevant. Yes, we know that economy is shaky, and some even say it’s really bad. It’s amazing that so many businesses can forget those lessons we learned from Lemonade Stand so many years ago…
What to do when things are normal When the weather is normal, you need to advertise. When things are stable there is no risk. You plow ahead advertising as much as you can afford, and tweaking your pricing, and inventory.
What to do in a heat wave When a heat wave hits in Lemonade Stand you know that your customers are anxiously seeking your product. You will sell product whether you advertise or not, – but if you continue advertising, you can sell even more lemonade. Why would you settle for moderate sales, when you can have increased sales?
What to do when it rains When it rains it’s more important than ever to advertise. Your demand is obviously going to decrease, -but why not prevent the decrease as much as possible? People are still buying things, but they’re being more finicky about what they purchase. They need even more persuasion than normal to make specific purchases. The counterintuitive part of a rainy day is that you’re better off charging more, advertising more, and controlling inventory than any other strategy. If you stop advertising, and lower prices, you might survive, but you will not thrive… So, maybe it’s a rainy day, or maybe it isn’t. Maybe Lemonade Stand doesn’t equal an instant MBA, – but one thing is for sure. If your business is in a downturn, or you’re selling less product, don’t stop advertising! Advertise more!