Basis Points

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Of Ayn Rand and the Tooth Fairy: The Recession’s Impact

Karen Kroll March 19th, 2009

Even as the economic crisis continues on its not-so-merry way, a few products, services, and companies actually are doing OK. Some even are thriving. Several that buck the overall doom and gloom:

Dollar stores: It’s no surprise that sales here are up, as consumers try to get the most bang for their own dollars. Dollar General’s revenue jumped 10 percent during fiscal 2008, and management is planning to open 450 new stores this year. Sales at Family Dollar Stores rose nearly 9 percent in the quarter ending in February.

Atlas Shrugged: Sales of Ayn Rand’s story of “men of the mind,” such as inventors, business leaders, and scientists, going on strike and refusing to contribute to society have risen as the economic turmoil has unfolded, as outlined in this article in The Economist.

Board games: As budget-strapped consumers are discovering, Monopoly, Clue, and Cranium are cheap entertainment. Sales were up 6 percent in 2008, versus a 3 percent drop in toys overall, reports Bloomberg.

Gardening: Along with snapping up Boardwalk and Park Place, more consumers heading to their backyards to plant vegetables. The number of households growing fruits, vegetables, herbs, or berries will rise by 7 million in 2009, says the National Gardening Association. After all, digging in the dirt can aid both budgets and the environment.

Used cars: Consumers have taken note of what financial experts have said for years: It doesn’t make sense to spend lots of dough on an asset that loses half its value 20 minutes after you’ve bought it. Sales of pre-owned BMWs rose 16 percent in 2008 and 24 percent in the first two months of this year, reports Carscoop.com

The Tooth Fairy: Even she is feeling the pinch, at least in Minnesota. According to a survey by Delta Dental, the average gift from the tooth fairy dropped from $2.10 last year to $1.62 this year.

Ab belts: One new product that’s gaining a following despite the recession is the Contour Core Sculpting System, otherwise known as an ab belt. It claims to strengthen stomach muscles using electric muscle stimulation. The company behind the system has sold 250,000 belts in just 15 months, according to this report. Consumers appear to be taking belt-tightening literally. ###

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3 Comments to “Of Ayn Rand and the Tooth Fairy: The Recession’s Impact”

Steve Justice Says:

March 20th, 2009 at 9:35 am

the conservative movements renewed love of atlas shrugged kinda sickens me. too bad the john galt’s of the world didn’t go on strike before they bankrupted their companies, swindling taxpayers out of millions.
Yegor Kuznetsov Says:

March 20th, 2009 at 4:34 pm

Intelligent Data Capture market is doing fine, too.

Companies whose software helps to automatically process millions of invoices and other financial documents are thriving. For example, Brainware, Inc., the provider of intelligent data capture and enterprise search solutions, has exceeded its Q408 bookings target by more than 150%. The company has signed more than a dozen new Global 2000 accounts, including several transactions in excess of $1 million, giving Brainware its highest total sales volume in the company’s history.

Now, whay is that happening? Why would CFOs be endorsing the purchases of this pretty expensive software when the IT budgets are tight?

That’s because Intelligent Data Capture products solve a burning problem: they allow organizations to immediately improve their working capital situation and require pretty modest internal IT resources. Such products can automatically process millions of invoices and other financial documents, making it possible to eliminate whole departments of low-paid, unmotivated data entry clerks.

And avoid the perils of outsourcing.
larry graese Says:

April 15th, 2009 at 9:45 am

John Gault did not own a company, he worked for one. it’s scarry how a book written in the 50’s seems to be comming to “life” right before or eyes.