Don't Let the Downturn Get You Down

The first inkling of trouble came late last August. Every summer, sales at Alchimie Forever of Washington, D.C., ramp up as spas and beauty salons build their holiday supply of the company's luxury face creams and lotions. But this year, orders were on pace to grow only 10%, a mere blip compared with the usual 24% third-quarter bump.

Founder Ada Polla Tray got busy. She upped the commissions of her four salespeople to 13% from 8%. She gave spa managers $100 gift cards for every $1,000 of products they sold. She offered a free tube of a new exfoliation cream to customers who bought six at $39 a pop. And she started slashing costs throughout the eight-employee, $1 million company. Her moves helped soften the blow: Sales rose 12% over the same quarter in 2006.