Monday Memo

A Byte of Knowledge

It's not enough to just sell the benefits of your product.

You've gotta sell people on their ability to GET those benefits.

Think about it...

Your prospect might totally believe your product works for others...

But secretly doubt if they're "smart enough" or "talented enough" to make it work for themselves.

It's like having a Ferrari but thinking you can't drive stick.

Doesn't matter how amazing that car is if you don't believe you can handle it.

So what's the fix?

Simple.

Your marketing needs to do two things:

First, show them the benefits (the usual stuff).

But then – and this is the key part – you need to prove they're capable of getting those same results.

Break down the process.

Show them it's not rocket science.

Make them think: "Hey, I could actually do this."

🚀 Discover the 27 ‘Plug-and-Play’ AI Prompts Every Marketer Needs 

Something to Ponder

TLDR: Elon Musk predicts that AI and robots could create an era where:

• Almost everything becomes extremely cheap to produce, driven by AI-powered automation in manufacturing, farming, and services.
• Both basic needs (food, housing, healthcare) and luxury items (electronics, vehicles, entertainment) become affordable for everyone.
• AI handles most work with near-perfect efficiency, eliminating major labor costs across industries from construction to customer service.
• Only deliberately rare items (like original artwork, limited collectibles, or one-of-a-kind experiences) would remain expensive due to intentional scarcity.

We Asked – AI Answered

Our Question: 

"What are 5 historically recession-proof businesses and why?"

AI's Answer:

1. Grocery Stores & Discount Retailers

• Why They’re Resilient: During recessions, consumers cut back on discretionary spending but still need essentials. Grocery stores and discount retailers, like Walmart and Dollar Tree, have historically seen increased foot traffic and sales. People trade down, looking for bargains, which benefits budget retailers.
• Supporting Facts:
  • 1980s & 2008 Financial Crisis: Walmart grew significantly during both crises, as consumers turned to discount retailers.
  • Case Study: A Harvard Business Review analysis during the Great Recession found that Walmart’s stock price increased by over 20%, while the S&P 500 dropped by nearly 40%.
  • Psychological Insight: Loss aversion drives consumers to save money wherever possible, leading them to lower-cost stores.

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2. Alcohol and Tobacco

• Why They’re Resilient: Alcohol and tobacco are often labeled as “sin industries.” While they are discretionary, they benefit from “self-soothing” consumer behavior during tough times. People seek affordable ways to relieve stress, and vice-based products often see consistent demand.
• Supporting Facts:
  • Great Depression Example: Prohibition actually ended in 1933 largely due to the government’s need for tax revenue from alcohol sales, which spiked as soon as alcohol became legal again.
  • 2008 Financial Crisis: Alcohol sales rose by 9%, despite a decrease in other discretionary spending, according to Nielsen data.
  • Psychological Insight: “Veblen goods” like premium alcohol may even see an increase as consumers buy small indulgences to feel better about tough financial situations.

3. Funeral Services

• Why They’re Resilient: Death is inevitable, recession or not, which means the demand for funeral services remains stable regardless of economic conditions. Families prioritize funerals due to social and emotional obligations, even when finances are tight.
• Supporting Facts:
  • Great Recession (2008): The National Funeral Directors Association reported steady demand, with families simply shifting from elaborate services to more cost-effective options.
  • Psychological Insight: Bereavement spending falls under social proof and obligation, where people feel societal pressure to honor loved ones, even if they reduce costs elsewhere.

4. Pet Care and Veterinary Services

• Why They’re Resilient: Pet ownership has steadily increased over the years, with pets often regarded as family members. Even in tough financial times, pet owners continue to prioritize food, grooming, and veterinary care for their animals. This industry taps into the emotional bonds people have with their pets, driving them to maintain a standard of care regardless of economic conditions.
• Supporting Facts:
  • 2008 Financial Crisis: According to the American Pet Products Association (APPA), pet spending remained resilient during the Great Recession, with the industry seeing annual growth. Pet healthcare, food, and even pet insurance continued to thrive.
  • Psychological Insight: Pets provide companionship, comfort, and mental health benefits, which are highly valued during stressful times. Pet care spending falls under “emotional necessity,” as owners view their pets’ well-being as crucial to their own.

5. Auto Repair Services

• Why They’re Resilient: When finances are tight, people delay purchasing new cars and instead repair their existing ones. This shift boosts demand for auto repair and maintenance services.
• Supporting Facts:
  • 2008 Recession: AAA reported an increase in car maintenance spending as people held onto their cars longer.
  • Psychological Insight: Auto repair taps into necessity psychology, where people are more willing to maintain what they already have rather than splurge on new items.

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Thanks for reading the Monday Memo.

Until next time!

The AI Marketers