Business

What Holiday Sales Can Teach Us About Plus Minus Shopping in Business

Dan Nicholson

As the holiday season approaches, so do two titans of American consumerism: Black Friday and Cyber Monday.  

 

Amidst the flurry of gift-hunting and deal-snagging, there’s a powerful concept that extends beyond the shopping physical and digital carts into strategic decision-making in the broader business world. It’s a concept I call “plus-minus shopping.”  

 

Decoding Plus-Minus Shopping: From Holiday Carts to Business Strategy 

 

In a retail shopping sense, you can think of plus minus shopping as having a plan for what you would buy if things were on sale, and a similar plan and perspective on what you would or would not buy if prices went up.  

 

In a business sense, it means having a clear plan and advance understanding of what you would buy and invest in when times are good, and what you would cut if the opposite were true—if the business was to contract.  

 

Holiday sale aisles and online banners really bring this concept to life. Imagine yourself navigating through the crowded stores, armed with a list of items you’ve been eyeing for months. Ideally these items are not just random; they are a result of careful consideration, reflecting your wants, priorities, and needs.  

 

Now, think of your business in a similar light. Just as you prioritize certain purchases during a sale, a business must prioritize where to invest during times of expansion. Outside the holiday aisles, plus-minus shopping in a business context means strategically identifying opportunities for growth and making calculated moves that align with your long-term vision. 

 

Navigating Economic Contractions: Principles for Business Resilience 

 

On the flip side, during economic contractions, plus-minus shopping means knowing where to cut without compromising the core integrity of your business. It’s about identifying redundancies, inefficiencies, and areas that no longer contribute to the bottom line.  

 

Just as you select the most valuable items during a sale, businesses must pinpoint the most critical aspects that safeguard their sustainability during lean times. 

 

For example, according to the International Monetary Fund (IMF), global growth is expected to slow down from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024, below the historical average of 3.8% . In times of economic contraction, plus-minus shopping means knowing where to cut without compromising the core integrity of your business.  

 

It’s about identifying redundancies, inefficiencies, and areas that no longer contribute to the bottom line. By pinpointing the most critical aspects that safeguard their sustainability during lean times, businesses can emerge stronger and more resilient in the long run. 

 

Every Decision Counts: Applying Rigging the Game Commandments 

 

Some of the principles (or commandments, as I prefer to call them) in my book, “Rigging the Game: How to Achieve Financial Certainty, Navigate Risk and Make Money on Your Own Terms,” put a finer point on this concept.  

 

Specifically, my third commandment—” Every Decision Has Infinite Trade-Offs”—aligns well.  

 

As the name suggests, this commandment emphasizes the importance of navigating infinite trade-offs, a skill that is of course applicable during strategic business decisions and the timeliness of all those holidays sales with which we’re getting inundated right now.  

 

In plus-minus shopping, it’s about choosing products or services with the most significant impact. Apply this to your business—identify the trade-offs and choose the path that aligns with your strategic goals (or, said another way – aligns with your version of “closer,” as in the things that get you closer to what you want), whether it’s investing in a particular product line or cutting non-essential expenses. 

 

The fourth commandment in my book is called “Asymmetry to the Upside,” which basically boils down to maximizing potential gains while minimizing potential losses. It means identifying opportunities and/or making decisions that offer substantial upside while carefully managing risks. 

 

I find this one particularly helpful in thinking about the “minus” side of plus minus shopping. In times of contraction, that might mean cutting things, but we should look to “cut” where the impact is minimal while focusing on preserving things that can yield significant returns when conditions improve. 

 

Conclusion 

 

Here’s the thing: Businesses should not limit the application of plus-minus shopping to once a year. Black Friday and Cyber Monday provide a timely analogy, but a “once a year” view of implementing this approach is akin to leaving money on the table. Every day presents opportunities and challenges, and businesses should be proactive in adopting the plus-minus shopping mindset throughout the year.  

 

The principles of plus-minus shopping should be ingrained in your thinking and operations, whether it’s a routine review of your operations, a quarterly strategy session, or a continuous assessment of market trends. Waiting for specific sales events is like waiting for the storm to hit before battening down the hatches. It’s like working with an archeologist to plan your future instead of an architect.  

 

Consistently making well-thought-out decisions not only steers your business in the right direction but also brings you closer to the financial certainty that ensures long-term success and happiness.  

Dan Nicholson is the author of “Rigging the Game: How to Achieve Financial Certainty, Navigate Risk and Make Money on Your Own Terms,” deemed a best-seller by USA Today and The Wall Street Journal. In addition to founding the award-winning accounting and financial consulting firm Nth Degree CPAs, Dan has created and run multiple small businesses, including Certainty U and the Certified Certainty Advisor program.

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