Seasonal demand is extremely important to many retail businesses. Products that enjoy increased demand during the warmer spring and summer months provide a huge revenue boost for many small businesses. Restaurants and food service businesses, clothing stores, and recreational equipment companies often see increased revenues through seasonal demand. Here are some tips for getting ready to reap the benefits provided by warm weather products.
Keep a 12-Month Perspective
Businesses with seasonal peaks and valleys should keep a full-time focus on maximizing the value of their highest revenue months. Many businesses that have strong appeal during warm weather benefit from broadening the products and services they offer to keep customers interested during fall, winter, and the typically busy Holiday season.
Full-time employees are generally more productive and loyal than part-time seasonal employees, and expanding seasonal offerings can justify keeping more employees on board throughout the entire year. Some seasonal businesses make enough money during the spring and summer to allow using the off-season for planning, expansion, and scheduling for the full calendar year.
Learn From Prior Seasons
Speaking of off-season planning, perhaps the most important thing a warm-weather business can do is to carefully evaluate the performance of the season that just ended in the fall and winter and plan for the upcoming season well in advance. An honest and critical examination of the things that went right and those that did not can give valuable insights about how the upcoming season can be better managed.
There are some major areas of management that every seasonal business should examine. Staffing is usually the largest single contingent expense for seasonal businesses. Determine whether you had sufficient and reliable staff in place or if there were too many employees on board at some or all times of the season. Analyze inventory as well. If you found supply shortages of popular items or find that you have inventory left over to be stored through the winter, make adjustments accordingly. Also, use the offseason as the best time to maintain or expand your business space and equipment well in advance of the rush of the beginning of the busy season.
E-Commerce Businesses Can Find Spring and Summer Markets All Year
If your business does not rely exclusively on in-person retail sales but operates at least in part as an e-commerce internet retailer, think about marketing and selling in locations with different seasons than your local area. If you are located in New York, your products are likely to enjoy a longer warm weather season if you market to consumers in Florida as well. If you sell outdoor recreational equipment that is centered on warm weather purchases, consider marketing in regions and countries like South America and Australia where spring and summer occur as we are in fall and winter.
Budget Costs Carefully
Base your expense budget on how sales expectations differ between in-season and offseason months. Set hours of operation from month to month to capture peak hours and to avoid wasted staffing overhead and other costs during slow times. Determine if you might be able to sublet some or all of your space during slow periods in order to reduce rent expenses. Make arrangements when possible with vendors to reduce or suspend purchases during your offseason.
PayHub Payments offers innovative and seamless payment processing for your brick and mortar retail spaces, your eCommerce stores, and your seasonal businesses. We are your partner in processing all types of card and electronic payments efficiently and at a fair, honest, and transparent rate. We can assist with individualized payment processing solutions for businesses of all sizes and types. Our commitment to unequaled customer service will give you the peace of mind that your business is maximizing its return on all processed payments.
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