(Newswire.net — April 17, 2019) — Seasonal businesses can be very profitable if they are in a popular location frequented by lots of tourists and vacationers even though they aren’t the most traditional type of retail operation. If you’re thinking about opening or currently run a seasonal shop, here are 7 proven retail sales tips that you should use to give yourself the greatest chance of success:
1. Marketing
Leverage social media to your benefit rather than relying on advertising through traditional channels (including print, radio and television). Facebook in particular offers a quick and cheap way to reach a highly targeted base of customers.
2. Advertise
Ideally, launch an ad campaign before opening. It’s a mistake to wait until you’re open to start advertising. Take a hint from the PR experts advertising concerts and theatrical productions and launch your marketing efforts a few months before you open for the season. This tends to draw a steadier stream of customers faster.
Keep your blog and social accounts active. Social media gives you tons of opportunities to connect with people all year round. Don’t stop publishing blog posts and posting updates on all the channels your customers follow. Use free time to create great content that can educate your customers. Doing so strengthens your community, lets you build authority, and ensures that people will remember you when it comes time to do business again in the on-season.
3. Know your location
Whenever possible, sell products which inspire some kind of local association. Examples include merchandise with local themes and products which have a direct connection to the location where you’ve set up your business and goods that are locally made. For instance, if you’re running a beachfront kiosk, chances are good that sun cream will be a strong seller but one from a local provider would be even better.
You win by carrying items not easily found online or back home. Keep in mind that just because your business isn’t in season in one location doesn’t mean that there isn’t a demand elsewhere.
Case in point: the company Big Feet Pajama Co., which sells warm pajamas, normally experiences a decline in US sales during the spring and summer months, but it’s very successful despite that.
Entrepreneur.com noted that the company compensates for the dip in US sales from March through August by targeting countries like Australia and New Zealand, where it is fall and winter at that time of year.
4. Save money
Reduce your spending if the business is really slow during the off-season. Here are some areas to look into:
Hours of operation – Generate sales reports per hour to figure out your least profitable times. For example, you may find that while you’re open from 8am to 8pm, you’re not generating enough sales from 7 to 8pm to be profitable.
Staffing – If foot traffic and store activity are on the quiet side, consider reducing your staffing requirements. Perhaps you can cut back on shifts or encourage team members to take time off.
Vendors/solution providers – Look at the business services and subscriptions that you have and see if you can downgrade to a lower plan for the time being. Also, see if your vendors allow you to put your account temporarily on hold.
For instance, Vend lets retailers put their accounts “on ice” — a service that allows users to retain all their data and account information when they’re not actively using the software.
Be cautious when you’re hiring seasonal employees – it’s not the same as you would if you were hiring a full-time permanent employee. Ask for references, make sure they’re going to be an asset to your business, and conduct background checks. Hiring friends and relatives can push your bottom line down.
Space – Subletting your location could help reduce your rent, which is one of your biggest expenses. Ask your landlord to see if you’re allowed to rent your space. If he says yes, conduct a search for other shops who would be open to moving into your location.
One seasonal retailer that did this well is a gift-and-card shop in Seattle called Metropolis. The retailer was hit hard by the recession and this moved the owner to rent out the space.
After getting approval from his landlord, he started subleasing a third of his store to other merchants.
5. Have a Clearance Sale
Lots of seasonal retailers keep old merchandise because they’re afraid to part with it. There’s no reason to. Instead, organize a big clearance sale while there are still many shoppers in your town, village or resort – don’t wait for the off-season.
6. Be smart about inventory
Pick your products wisely. All the sales training in the world won’t help you if you pick the wrong products. Stick to proven bestsellers, you don’t have time to be patient with slower-moving products, even though they might offer a bigger profit margin or you personally like them. Successful seasonal businesses thrive on volume. When it comes to managing inventory an Up To Date POS System can go a long way.
7. Give buyers a reason
Give shoppers a reason to buy. Everyone knows people are more likely to spend money when they’re on vacation. Differentiate yourself from your competitors and you’ll see more of that cash coming your way. Display a few items thoughtfully instead of racks and racks of the same thing. Devise new uses for an older product. Make interesting signs that attract customers, making them stop and consider your items.
During off-season, your sales don’t have to grind to a complete halt. There’s a good chance that you can still bring in some revenue even if it’s not your busiest time of the year no matter what kind of seasonal business you have.
Diversify your business offerings and see if you can sell complementary or related products and services. Define the other needs of your customers and find ways to fulfill them even when your main business isn’t in season.
Final Thoughts
On a final note, you could set yourself apart from competitors like offering serves such as seasonal tax preparation, credit lines and payroll processing. This will let you offer value and make money even during off-peak months.