After the economic crisis that started in 1999 and continued for more than 4 years, until mid 2003, which combined deflationary processes, recession, unemployment and devaluation, among other catastrophes, the policies promoted, mainly by Kirchner's governments, were focused on considering that domestic consumption is the main engine of the economy and that sustaining it would ensure growth and permanence in power.
In truth, from the point of view of power building, they did not do badly.
Now, regarding the growth of the economy, we must remember that when President Néstor Kirchner's administration began, the country was in a total crisis, having reduced its GDP from 378.883 billion dollars in 1998 to 97.724 billion in 2002, according to World Bank data, almost a 75% drop in just four years.
According to the same source, the growth that occurred since 2002 was sustained until 2015, except for some small corrections in the years 2009 and 2014, largely due to external effects, reaching a peak of almost $600 billion.
In other words, during the last 20 years the Argentine economy grew, on average, more than 6 times.
At least two or three generations of Argentines were born and lived in a country in which governments, sometimes at any cost, supported consumption, either through subsidies, investments in public works, interventions in the price of things, multiple exchange rates, tariff delays and all kinds of discretionary measures that allow directly buying from citizens and selling to companies and traders.
This state intervention has relaxed some muscles that are very necessary for the country to come.
We have forgotten how to sell.
The challenge of these last years has been to obtain merchandise, employees, access to official dollars or more competitive suppliers, with some exceptions, selling was not a challenge, everything went through the structure of direct and indirect costs.
Those who knew how to do the accounts won, those who made mistakes lost money.
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However, those of us who were in the economically active population during those hard years, prior to growth, remember how difficult it was to sell.
Now that we have to pay the bill for boosting consumption on the basis of an expansive monetary model, the memory of those times is still present.
Perishable products were expiring on the supermarket shelves, shopping was done by the day, the chain of payments in the textile industry was destroyed, bounced checks were more common than cashed ones, entertainment centers were empty and restaurants were only frequented by tourists and the well-to-do.
There were too many cars in the terminals and flight frequencies were lower because in many cases the trips lacked passengers.
I close my eyes and I see those salesmen in the stores waiting for someone to look at the window and pass by, even if it is just to ask something. Demoralized vendors, doing the Claringrilla, the crossword puzzle of the Clarín newspaper.
That is why I would like to share some tips that were useful at that time.
Take care of the customer you have. Losing a customer means that a product expires or goes out of fashion or loses value.
Take care of your working capital. Keeping an orderly and real accounting will help us outlast our competitors and be better prepared for when the storm passes.
Offer products according to our customers' circumstances. For example, if our products are offered by the dozen, let's think about selling by the unit.
Add value to the product we sell. For example, if we sell products that require installation or preparation, add a bonus in the price of the article, in this way our customer will have simplified the use of what he acquired.
Offer complementary products to the ones we sell, for example, if we are selling yerba mate, add thermos flasks, light bulbs and mates to the gondola. It is common that when we are going to buy something that we consume we remember that associated product that we are missing.
Develop new dissemination and sales channels. Nowadays, online sales in many cases surpass face-to-face sales, which reduces costs, since no commercial premises and spaces are required and, in principle, the need for personnel is reduced.
Understand the cost structure of the business. Many times we work in our own ventures and confuse the business cash box with our wallet. It is healthy to keep them separate, since one is necessary to work and the other to live. If they are mixed, we can make the mistake of thinking that the business is good and instead we are subsidizing it with our work, or on the contrary, we can believe that it is bad without being so, only that we are overspending in our private accounts.
Take great care of our reputation, both in face-to-face and virtual experiences. In today's world, the first reference that a potential client checks goes through Google.
Do not get into debt at interest rates. In general, we make the mistake of going to a lender first and then to family or friends, in the end we borrow to pay interest. In difficult times the best thing to do is to open the business, look for partners or arrange with suppliers extensions in the terms. Probably the same thing is happening to them.
Creativity and collaborative partnerships. In complex situations for everyone, the worst thing is to get discouraged and stop dreaming. These are moments in which we must be creative and understand that this circumstance will also happen. Being honest with our suppliers and customers will be essential to overcome the crisis and strengthen relationships for the future. Receiving goods on consignment or agreeing associative models with suppliers and employees could mean the survival or bankruptcy of an enterprise.
Understand that, as with all things in life, cycles are impermanent. In other words, good times always come after bad times.
Be prepared just in case.
Best of luck.
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