There is so much economic gloom and doom in today’s communication. Granted, there is plenty of troublesome news. No one likes to pay $4 for a gallon of gas. No question that fuel prices are driving up nearly every commodity that we purchase. The U. S. dollar is currently quite weak, which exacerbates oil prices. The number of real estate foreclosures continues to mount and housing prices may not have hit bottom yet. Of course, the banks and financial institutions are still reeling from their poor sub-prime loan decisions.

The result of these and other issues is that the stock market is down. Consumers are cutting back on spending. Air travel is plummeting. Some businesses are closing. Bankruptcies abound. Many corporations are scrambling to survive.

However, not everyone is faring poorly. Not everyone is sitting on their hands and complaining. A recent Wall Street Journal report compares the Disney and Las Vegas resorts. One is booming and one is dooming. The Disney theme parks are enjoying surprising success while the Vegas resorts are falling like the proverbial rock.

It seems that planners at Disney have made some significant changes. First, they lowered the cost of their vacation packages and reduced the prices of their hotel accommodations. The result has been a 22 percent increase in gross sales over a year ago.

Granted, Disney has benefited from many foreign travelers visiting their U. S. parks, taking advantage of the weaker dollar, but that alone can’t account for these increases.

Americans love bargains too. Disney’s theme parks are located in densely populated areas, and with the high price of fuel, fewer U. S. vacationers are traveling long distances — especially to non-U.S. destinations in light of the weaker currency.

By contrast, Las Vegas has done little to change their recent trends. There was a time when the gambling Meccas were noted for cheap rooms and unlimited buffets. No so any more.

Gambling, once the lifeblood of the casinos, now accounts for only 41 percent of their revenue while 58 percent comes from sales of food, beverages, rooms and shopping. There are few bargains on rooms and shopping today.

Overall, conventions are off over 10 percent in Las Vegas. Gambling revenues are down over 4 prcent. Obviously, people are driving and eating out less. Likewise, patrons are plunking down less at the tables in favor of filling their gas tanks.

Can business learn anything from this contrast? Of course. First, business needs to be nimble. When the economic winds blow a different direction, business needs to adapt. The old paradigms may not work.

Second, consider the customer. I think business should think like a family thinks. When things get tight, what gets cut? Discretionary items get cut. Waste is cut. People stay closer to home. Appeal to it. Luxuries are reduced. Make your business a necessity, not a luxury. Make your product affordable. Go for repeat business. Volume usually offsets lower prices.

Business needs to appeal to the common values of most citizens. Quality always outweighs cheapness. Exceptional service attracts loyal customers. How many times have you been to Disneyland? More than once is my bet and you’ll probably go again. I think you always take a camera to record the memories. That might be a good litmus test. Do you take a camera to record the experience? Contrast that with, “What happens in Vegas stays in Vegas.” The difference may be pictures.

The WSJ concluded, “Suddenly cheap is in, something Las Vegas has spent a decade running from. Maybe it’s time the Strip took some lessons from the ‘The Happiest Place on Earth.’”

Notable Quote:  “Disneyland is a work of love. We didn’t go into Disneyland just with the idea of making money.” — Walt Disney

Mills is a Registered Investment Advisor and Certified Financial Planner. If you have questions or topics, contact him at 1030 Seminary St. Suite D, Napa CA 94559 (707) 254-0155, or e-mail suntrm@aol.com