Recovery may not be the right word to describe it.
For the record, I’m a pretty optimistic person about most things and not siding with recovery as the answer, the end result remains upbeat. Looking back at recent history for us and most in the telecom/technology retail space, spending jumped off the cliff back in August or so.
While we (VoIP Supply) have seen some stabilization and slight upticks in revenues, far more important changes have occurred and been highly visible. The customer has changed and I’m pretty sure the old one has gone away. We may well be in the midst of a “recovery” but it is more like a rebirth of a more fiscally responsible customer. Gone are the days of spending to spend, spending to meet budgets and buying just to have the latest features and widgets. This is a good thing in my opinion.
We’ve changed and so has our customer.
Interestingly enough, the change has not been our customers running away in search of a less expensive seller (many of our competitors) as the need for value remains despite the need to spend less money. Instead of simply heading for the lowest cost, our customers are just being more careful in their selection, less in need of fancy bells and whistles and more in need of a partner that understands. Rather than drop our pricing to make sure customers are not heading away in search of lower costs, we have increased our offerings and rolled out programs for the customers that offer alternatives and configurations that meet their needs without breaking the bank. They seem to like it.
While I believe we’ve seen a bottoming in the economy, I’m not planning on a V shaped recovery here, I’m pretty sure this is the recovery phase and we’re seeing a new breed of customers. If I’m wrong, the upside is a faster recovery, if I’m right then we’ve got no worries and a lot of value to offer. If I’m really wrong and we haven’t seen the bottom, we’ll be here offering value just the same.