Economic crisis! OH NO! more expensive food, sky-high electricity prices and interest rates that tick upwards every day. How can you afford anything other than the absolutely necessary? We know it can feel hopeless right now and that having to save money and put shopping on hold is stressful. Just when we came out from the Corona pandemic fog, then BAAM! next crisis hit the roof.
But hold on! We see big signs that things will start to turn around already in 2023 and that in 2024 it will all be over. We simply have to endure as we learned from the Corona pandemic. But do you know that you can actually make money from the financial mug? WOW! Do you think then how can you profit from a crisis? Well, the fact is that many prices in many industries will go down instead of up. Especially when it comes to interior design and furniture. Here we advise how you can find lots of lovely interior design at SALE prices and actually make money instead of losing in the economic crisis.
When demand drops, your chances for mega bargains increase
What is happening in Sweden right now is that the demand for certain consumer goods is dropping drastically. Even though overall demand is high in our society. At the same time, we know that those who manufacture goods and products that are affected by a rapidly falling demand, cannot adjust in the same way as we consumers do. It is simply not possible to completely reduce production and adapt it to demand. So, what happens then? Well, there will be a surplus on the supply side, which benefits you! How then, you may wonder?
To speak plainly and make it a little easier to understand: Let’s assume that IKEA sells 5,000 chairs, model Karlpetter, during a normal month. Note that this is a made up number just to make an example. The price of the chair is SEK 600. Thus, 5,000 new chairs are produced every month. However, in order to produce the chairs and make money, IKEA needs to buy raw materials in large volumes, in order to get good prices. You have raw materials, personnel at the factory, logistical agreements, etc., to be able to produce chairs for several months.
What happens then if sales suddenly halve and end up at 2,500 chairs per month? Well, then you are forced to lower prices to meet the reduced demand. Otherwise, you risk getting a large stock of unsold chairs. It’s effects like this that you should look out for.
We will see more and more campaigns
One effect of the fact that supply and demand will no longer be in equilibrium, is that in the future we will see more and more campaigns where companies dump prices heavily to sell off a stock of a certain product, etc. The only thing you need to do is learn you how to find these promotions.
If you are interested in a certain segment, such as interior design, and want to keep an eye out for upcoming promotions, you need to practice finding them when they appear. Promotions can sell out very quickly and if you are not prepared from the start, you risk missing the train.
Use Google Shopping to monitor your products
A very smart tip in order not to miss any hot campaigns, is to use Google Shopping. There you can search for products you are interested in, for example “chairs”. Then you can make your own filters on price, manufacturer, etc. You can also tick an option called “On Sale”. Then you only show products that are on sale. Then take the full URL and save it as your favorite. Now you can visit your selection daily and keep track of which products appear.
With this method, you will be able to make some really nice bargains in the future as retailers and distributors stock up.
Inflation will moderate – hold on!
Right now everything is becoming more expensive in our society and they are becoming more expensive to live. This is due to the rampant inflation. We see the same tendencies throughout Europe right now. This is why the Riksbank is now raising interest rates substantially. They simply want people and companies to invest their money in the bank, instead of consuming and investing in new projects. This is thought to dampen demand in general in society and cause inflation to decrease.
As early as 2023, inflation is expected to be back at a normal level. But then a recession probably awaits, where the desire to shop is generally low. This means that you who want to continue to find goods, will be able to do so! Companies will fight for customers and there will be campaigns that replace each other.
You can simply cash in on the economic crisis if you look in the right places online. Always look on the bright side of an crisis!
