Is Discretionary Income Shrinking and How Will It Affect Your Horse Business?

If your customer is employed, receiving the same steady paycheck as eighteen months ago, is there any change in discretionary income?

 

No.

 

If  Discretionary income = Gross income - taxes - necessities, then the dollars are still available to spend.  The change in D.I. is fear. Fear has changed the customer's attitude about spending money on horses.

 

In conjunction with your marketing program, sell the value you offer in your business.  You provide much more to the boarding customer than a clean and bedded stall, feed and water.  You offer atmosphere, community and emotional relief in the form of recreation.  A therapy that is most effective and greatly undervalued.  Your lesson program offers much more than an improved seat or better lead changes, it offers personal growth, achievement, and confidence building which are benefits hard to find for youth and adults.

 

Periodic, thoughtful review of your sources of horse business revenue and their related expenses help make sound business decisions in all economies.  This work can be ignored more easily in good times because there is forgiveness due to greater perceived amounts of discretionary income.

 

Focus your horse business enterprises on the customer groups with the ability to pay and understand the complete value you offer.

 

You can find tips on operating a successful horse business at my site www.ProfitableHorseman.com

Comments

[Jennifer Foster]

I agree that fear is driving the changes in spending habits. And the media is driving the fear!

Jennifer Foster
www.eqbookkeeping.com