The Business Breakdown

Blockbuster is closing its stores, maybe credit card debt isn’t all that bad, and you might want to unplug the toaster.

 
 

In theory, now would be the time for vacations and relaxing. But the economy isn’t making it easy to enjoy anything. Air fare is getting more expensive, and the news is trending toward uncertainty. This week, we’ll try and offer some possible solutions for you and your members. Here we go.

  • Blockbuster Not on The Block: The post-bankruptcy shutdown of Blockbuster stores has left people looking for DVD rentals out of luck. The Breakdown: Here is a classic example of an opportunity. Granted, Blockbuster went extinct because of its inability to keep up with Netflix and other digital services. But what if someone entered the market with a mastery of both digital and brick-and-mortar DVD rentals? That’s kind of like what potential members are looking for. Look around your market. What are your competitors’ weak spots? Is it online services? Brick and mortar? Master them both.
  • Credit cards = spending: Wildly racking up credit card debt never makes sense, but some experts think the added spending of credit card usage could help the economy. The recession made people take on new debt, but now might be the time to infuse the economy. The Breakdown: You need to help your members spend but do so wisely. Maybe you could offer a strong promotion on credit cards (with an attractive rate) and attach a class to the card. The class (held at the credit union) could focus on proper debt management. Then, you get a new relationship and make the member feel valued at the same time.
  • Appliances can save you money: WalletPop offers recommendations on how to save money by turning off common appliances and maximizing energy efficiency. The Breakdown: Great example of detail-oriented thinking. Members are struggling. They are looking for any way they can to save money without negatively affecting their quality of life. WalletPop’s suggestions are one way, but surely you and your credit union’s staff can think of more.  
 
 

June 20, 2011


Comments

 
 
 
  • Excellent reminders about the basics of our members financial needs & how we can help them. "People helping people".
    Jennifer