There’s a whole lotta panick goin’ round these days. Wall Street, the White House, Congress, Big Bank CEO’s…pretty much everyone that has made poor decisions and contributed to the present economic crisis is sweating through their suitcoats right now. And with good reason…

But what about Main Street? Truth be told, it really hasn’t hit Main Street just yet. If or when it does, economic turmoil can present a unique opportunity. To recognize that opportunity, it helps to understand the basic Middle-American psychology of recession. That psychology is really pretty simple: in an economic slump, consumers focus on value. Simple as that.

So, for Main Street, this is a wake-up call. During times of economic boom, you can get away with touting fluff and flair as points of differentiation, because consumers have more discretionary income and they don’t mind spending it. Not so in a recession. Income is down. Spending is down. Confidence is down. As a result, the POD becomes “value.” Consumers want to make the most of every dollar spent.

And, therein lies the opportunity…

The knee-jerk reaction to a sales slump is most often a price cut or a discount or some sort of incentive. And it’s contagious- if your competitor slashes prices, then the temptation for you to do the same is significant. But don’t be fooled. No one wins a war of discounting, especially in times of economic turmoil. Prolonged discounting may give you a bump in quick market share, but it will be short-lived, and in the intermediate and long term, it only cheapens your brand and erodes its equity.

Instead of discounting, get back to the basics…back to your roots…back to what really drives you. What kind of real value does your brand provide and how can you increase it? The brand that focuses on value rather than discounting will emerge from economic downturn with greater brand equity and market share.

Another aspect to the opportunity of economic turmoil is that it allows you to streamline your processes and examine your distribution channels. Streamlining processes is a good idea from time to time in any environment, but can be particularly helpful when sales are down. By increasing efficiency, you can often increase cash flow…work smarter, in addition to working harder. Taking a good, hard look at distribution channels is part of the streamlining effort. Do away with those that aren’t highly profitable and introduce new channels that are more efficient and direct. Throughout this process, there is again the opportunity to create more value for the consumer without cutting prices.

Economic turmoil is a test of character for any brand…no question about it. During these times of testing, brands that recognize opportunities to increase market share- without sacrificing margins and value- win.

But above all, don’t panic. This, too, will pass…