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 Fall: That time of brown leaves and green money...
 
Location: BlogsSpeaking of business..."    
Posted by: Dr. Philip R. Geist 10/16/2007 12:34 PM
Fall is in the air, its a bit cooler and the humidity is lower. Fall is also the time that sales begin to increase as holiday gift buying begins, vacationers escaping cool weather come to Florida, and the "Snowbirds" return.

Fall is in the air, its a bit cooler and the humidity is lower.  Fall is also the time that sales begin to increase as holiday gift buying begins, vacationers escaping cool weather come to Florida, and the "Snowbirds" return.  For both retail and serv ice businesses fall is the beginning of the "money making season."  But sales don't "just happen."  You have to promote your business and let customers know what you have to offer.

Remember that our population is continuing to grow, so use media and methods (mailings to new residents for example) that can help target those potential customers.  As for the returning "Snowbirds," you should reach out to any who were customers last year with a special offer or promotion in order to re-aquaint them with your business.  It is always better, easirer, and less costly to reaquire a prior customer than to attract a new one.  Of course, you should always be trying to attract new customers and there are many techniques you can use like "Snowird" specials, New Resident promotions, and Vacationer packages.  In addition to those groups you should also be trying to "capture a bigger piece of the pie" by growing your market share.

If you are in retail, you should have ordered any seasonal inventory by now.  For service businesses (as well as for retail) you need to project staff needs for the busier season and hire and train ahead of the sales increase.  Nothing will frustrate a potential customer faster or drive them to your competition than having to wait because you are understaffed.  Matching staff levels to sales projections can keep you "customer friendly." 

Beware the "Grinch!"  (courtesy of Dr. Seuss).  Your competition can undo all of your planning by having promotions or slashed prices when you don't.  For items that are holiday related, the goal is to have empty shelves at the end of the season, but to have sold at the highest possible price.  For both of those conditions to occur, you will need to keep a close eye on the competion during the holiday season. 

Give the gift that keeps on giving... to yourself!  According to Lehman Brothers gift cards are expected to account for 16% of sales this year, up from 12% last year.  Deloitte and Touche note that 67% of all consumers plan to buy at least one gift card this holiday season!  For small businesses, a self-generated gift certificate can accomplish the same purpose as a gift card.  Offering gift certificates could proide a significant boost to sales.  Actively promoting gift certificates instead of just offering them can increase that boost.  There are two other benefits to gift cards or certificates.  First, they help cash flow by being prepaid.  Secondly, a percentage of them will never be redeemed.  That percentage becomes pure profit to you!  Few businesses give out data on unredeemed gift cards, but Bloomberg News recently reported that Best Buy indicated that their unredeemed cards "exceed 10% of card sales."

Keep looking for new opportunites and promotions to boost sales.  While the traditional holiday season may end with New Year's Day, other holidays ranging from Valentine's Day to Easter can help keep sales strong.  The "Snowbirds" will be spending money in Florida until late in the spring when they leave again, so emphasize customer service to attract repeat sales as well as references and referrals to other potential customers.

Lastly, a personal note: remember to thank and help others.  Your success is due in part to your employees, your suppliers, and your repeat customers.  Honor them with a bonus, a gift, or a thank-you.  When you can, help the less fortunate with direct contributions, contributions to community organizations, or merely by welcoming service organizations like The Salvation Army to seek donations at your door.

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