Maximising seasonal sales
Holidays and other seasonal events affect different businesses in different ways. Some businesses will experience a boom as others enter a quiet period. Regardless of the effect of seasonal events like Christmas, Easter, the opening or closing of schools or the onset of summer or winter on your business, you can use this to your advantage – if you plan ahead.
In any one seasonal period, your business is likely to traditionally see either an increase in sales, a drop in sales, or no change whatsoever. You can plan to use each of these scenarios to boost your overall business performance.
On this page:
- Making the most of increased sales opportunities
- Managing supply and demand
- Keeping long-term cash flow in mind
- Making the most of quiet periods
- Finding ways to make seasons count
Making the most of increased sales opportunities
If you are approaching a season that usually brings a spike in sales, it makes sense to aim to maximise your possible sales. The secret to maximising sales is planning ahead. Ideally, you would want to plan well in advance so you are ready to roll out your strategies before your competitors do –and before your customers think of buying.
Some ways to boost your sales include:
- Identifying new products and services: You could develop anentirely new product range, or add additional seasonal items like Easter eggs,Christmas stocking fillers, or sun screen.
- Targeting existing customers: Use your database to contact existing clients with promotional information and offers or seasonal bulk discounts, or offer a referral incentive if their friendsbuy from you.
- Finding new customers: Competitions, in-store promotions and spot-prizes are effective ways to get the attention, and hopefully the business, of new customers.
- Finding attractive ways to package existing products: It is a good idea to create enticing package deals. You could offer two-for-the-price-of-one deals to boost your sales or put together an attractive back-to-school package or basic ski package deal that could increase your turnover.
- Boosting capacity: Service suppliers could take on extra staff, manufacturers might look at outsourcing or subcontracting production to meet the increase in demand, and retail outlets could even consider opening a temporary outlet or selling at market to maximise sales opportunities.
- Selling up: Train your staff to sell more to customers. For example, a business selling sports equipment could suggest a more expensive product if it meets the customer’s needs, or they could enquire whether the customer would also like useful accessories. Similarly, if you sell torches, do your sales staff ask if customers also need batteries or a spare bulb?
- Adding benefits: It is important to make it easy, if not enjoyable, for customers to buy from you. Make sure you have sufficient staff, enough stock, adequate parking and easy payment options. Think of offering additional services, like children’s entertainment or gift wrapping, or a free ski lift pass to encourage people to buy from you. Seasonal decorations could also be a strong customer draw card.
Managing supply and demand
Seasonal spikes in sales can create supply or distribution problems, particularly if demand takes off and exceeds your expectations. It makes sense to try to spread the demand for your service or product where you can. Some ways to do this include advertising early, offering discounts for early purchases or orders, or working ahead or in arrears. You might be able to do the work in advance to leave you with more capacity during the seasonal rush or forward sell and deliver when things quieten down.
It also makes sense to manage supply. Talk to your suppliers and let them know what your requirements are. Find out if they have any deals or special packages you can take advantage of over the seasonal period. You might also be able to negotiate additional discounts for bulk or advance orders.
Keeping long-term cash flow in mind
If you’re in the middle of a busy period or at the tail end of it, the increase in sales is likely to result in a noticeable improvement in your cash flow. Before you rush out in celebration and buy a new car, indulge in an iPad, or buy new machinery to increase your production capacity, remember to bear your long-term cash flow in mind.
You might have enough money now, but you’ll probably need some of this to see you through the quieter periods. It’s best to run a detailed cash flow forecast before you commit to any new purchases, to make sure that your business really can afford the expense.
Making the most of quiet periods
If a particular season heralds a drop in sales or a quiet period for your business, your approach will be different. You’ll want to maximise your sales prior to your quiet period, including getting in pre-orders.If you shut down for a period, one effective way to get advance orders is to advise customers of when you’ll be shutting down and re-opening. They’ll need to place orders to ensure continuity of supply.
If the holiday or season brings a lull in business, plan to use this time to your advantage. Accept that most of your customers are on holiday and focus on strategic planning, product development or plans to boost your sales as your business enters its busier period.
Shutdowns or quiet periods are also the perfect time to plan for any repairs, renovations or makeovers.
Finding ways to make seasons count
If holidays and seasons don’t usually have any impact on your sales, see if you can find ways to generate additional sales. Ask your staff for suggestions on how to increase sales. Find out from your customers if there are any new products or services you could offer them. A catering business might be able to generate extra business by supplying Christmas cakes or Easter baskets.
Another way to do this is to tap into the spirit of goodwill and giving. You could join forces with a worthy charity and donate a percentage of your revenue to them – the partnership could generate a useful increase in sales.
This Information is supplied by Business.govt.nz
