Retailers and business owners must first recognize this phenomenon and quickly learn how to sell to this chastened consumer. Offering the very best value, not necessarily the lowest price is essential to luring back recession-weary customers. More attention to customer service can help instill confidence in those who may still be a little weak-kneed. Incentives and special offers for future purchases can encourage them to return. Fresh products and relevant brands can inspire consumers to acquire "new" merchandise. Reaching out to new markets through the power of social media can also help connect with a wider cross-section of consumers.

Pundits are dubbing this the Great Recession. Slowly, but surely, we are digging our way out. Holiday retail sales were solid, if not spectacular. Ford is edging back up again and new technologies such as iPhones are growing stronger by the month.

Having been in business through three (count 'em three!) recessions, experience tells one we are not exactly out of the woods yet.  It appears to me that we are now in penance mode. We see how the errors of our ways, such as heavy spending and large debt can become our demise. Frivolous overspending has turned sharply into thrift, even fear.

With the consumer focus on value right now, major brands are rethinking their approach. Who would have ever thought the mighty Bloomingdale's would launch an outlet store concept, but they will this summer in New Jersey. Now I am suddenly conjuring up caviar on a paper plate!