Rick Zich: Welcome to market insights. I’m your host, Rick Zich, and with me today, Bart Schannep.
Bart: Good morning, Rick.
Rick Zich: Good morning. How you doing this morning doing this morning?
Bart: Doing great.
Rick Zich: Fantastic. Fantastic, you know, today we’re doing one of those unique things that we do that is not necessarily tied to a specific moment in time. But I think it’s pretty relevant. And that has to do with ripple effects.
Rick Zich: So different decisions that are made. And so right now, we just happen to be in a very specific type of space and time that we’ve had lots of things that have been canceled.
Rick Zich: Disruptions, things like that.
Bart: Yes. And one of the worst parts of this disruption, it’s invisible. Right?
Rick Zich: That’s right.
Bart: Okay. So we’re not talking about a – we’re not talking about a war. We’re not talking about, like the airborne oil embargo where there literally was no gasoline. We’re not talking about that. We’re talking about an enemy that’s invisible, the Coronavirus and the ripple effect that it has had on our economy which ties into our business, but our lives, our very lives.
Rick Zich: Absolutely.
Bart: And so a prime example of that is weddings.
Rick Zich: Weddings happen all the time.
Bart: Think of all the weddings that have been hopefully just postponed, or truncated to video only, which some have, or are truncated just to just the parents are the smallest possible group of people possible versus the effect on people’s lives in the economy had it gone through full-blown.
Rick Zich: That’s right. So if we think about what is all included in the wedding, you’ve got where they’re having the wedding and that’s two spots.
Bart: The venue.
Rick Zich: The venue, so, so they might have a church. They’ll go to maybe a church first, depending upon you know, your particular situation. Then you have the venue.
Bart: Where you have the reception, right.
Rick Zich: You are paying a pastor even though it might be at a church so there’s money. They’re the venue, how many people are in the venue that are being paid? Employees.
Bart: How much food? How much booze, the stamps that go out on the invite?
Rick Zich: The stationery.
Bart: The stationery, for the invites, the – everything across the board. I mean, even the honeymoon, the cruise ships, the airlines to get to the cruise ship or whatever you’re doing.
Rick Zich: The Uber driver.
Bart: Right? And so even people who are postponing it, are they going to still do the same big today? Or are most people going to do a small private wedding now? And do a reception later?
Rick Zich: That’s right.
Bart: So it’ll be a less to do. So this rippled through the effect of the economy. And unfortunately, the people who get hurt the most are the lowest paid, the low pay wage earners, the people who are the servers, the people who are helping to present the food, the drinks, the event, they’re the ones that get short shifted. So this is – this has been a real double whammy of the Coronavirus, socially imposed isolation and when you think of, even if things get back or when things get back to normal, the airlines have still been paying finance fees on their airplanes that nobody’s flying on. The cruise ships are still paying finance charges on the cruise ships that nobody’s on.
Rick Zich: Absolutely.
Bart: The people who sell diamonds [crosstalk][00:04:20] have held – they’ve held all that inventory during this quiet time. So the good news is things will get back to normal. And we all hope that it gets back to normal as soon as possible and comes back roaring strong.
Rick Zich: And the contrary to that also Bart just to continue just for a second is that we have also had some changes happen because of these kind of disruptions. I think that the online videos and those kind of things like what you said they might do an online video on there. Those businesses are doing good except it was really unexpected.
Bart: And how many employees does that really run?
Rick Zich: Very, very small. Those businesses were already running. So they might have been increased their business. But it’s not helping like you said. The lowest rung of the people are still greatly impacted. They’re not doing additional hiring or things like that. So for someone to say that, yes, it’s shifted only to a certain extent.
Rick Zich: Only, yeah, for only a small amount. So I think it’s fantastic information. Thanks so much for bringing that up. I appreciate you sharing that insight. And I’m sure that we will have many more to come. So please check back with us again. Visit the website for new and interesting articles. And I hope to see you again. Thanks so much.