While some companies are experiencing tough times and others have gone belly up, these five firms have developed unique ways to boost profits while their competitors are struggling to keep their heads above water.

1. Priceline (Revenue up 46%): In the digital age, consumers want inexpensive options right at their fingertips. Rather than combing through hotels or digging for discounts, Priceline provides those options and even allows users to name the price they’re willing to pay. While travel is down across the country, Priceline is gobbling up business from people who still want (or need) to travel, but don’t have the budget to pay top dollar.
2. Amazon (Revenue up 38%): While book sales are down at most retail chains, Amazon is cashing in on convenience and access to tons of titles, offered at bargain-basement prices. A lot more consumers are shopping online these days, which gives Amazon an automatic advantage. But the company also offers several different editions of books (as well as other products) at discounted prices. In many cases, the company’s even able to offer used items for price-conscious shoppers. On top of that, Amazon keeps a record of each customer’s buying history, which it uses to cross-sell other items and increase its average volume per customer.
3. Aeropostale (Revenue up 28%): When the economy was good, upscale brands like Abercrombie & Fitch and American Eagle thrived. But these days, Aeropostale leads the pack by offering name-brand clothing at reasonable prices. It’s a marketing angle that appeals to both parents and teens, and Aeropostale has made the most of it, posting major profits with a number of back-to-school specials and other discounts.
4. GameStop (Revenue up 26%): Unlike some retail sectors, the video game industry has continued to do well over the past few years. But GameStop has managed to build on its marketshare by using several different mediums to promote its brand. The company has two interactive Web sites that continually draw gamers back for tips, discounts, reviews, news, online chat, and other resources. GameStop also has its own magazine, which promotes not only the name, but top-selling products customers can purchase either online or in stores. Finally, Gamestop cashes in by reselling used or dated video games at discounted prices, which opens up a whole new revenue stream without adding any major overhead.
5. Staples (Revenue up 26%): With most companies tightening their office supply budgets, profit margins aren’t what they used to be at Staples. But Staples is increasing overall revenues by expanding its operations both in the U.S. and abroad. The company has also boosted sales by adding services like printing and copying that allow it to gain some of Kinko’s customers.

So what do most of these five companies have in common?

• They provide customers with several different buying options.
• They provide buyers with the most cost-conscious options, including renting products or buying them used
• They each have a strong online presence, so customers can navigate easily, choose what they like, and check out quickly without having to provide any unnecessary information.

Most of all, these companies have managed to remain affordable at a time when buyers value that the most. And they’ve also built a strong reputation for quality, which makes customers believe their getting top value no matter what.

Source: “10 Retailers Gaining Strength from the Recession,” by Rick Newman, 10/05/09