Reduce Seasonal Sales Slumps
 By Alex R. Merriman

Many businesses’ sales are seasonal, fluctuating greatly over the course of the year and sometimes resulting in a feast-or-famine scenario.

Landscapers, for example, generate most of their revenue during the spring and summer. So do many businesses that cater to seasonal tourists.

If your small business experiences peaks and valleys every year, consider these ideas for bumping up sales during your off season.

Diversify Your Product Offerings
This may be the best strategy, since it builds upon your company’s inherent strengths and creates new opportunities for increasing revenue over the long term.

Companies that rely heavily on the Christmas season are the classic example of the seasonal-sales-dependent business. So a manufacturer of Christmas tree ornaments and wreaths might start making trinkets she could sell during other holiday seasons, like Easter and Halloween.

Sellers of winter and summer sporting goods are another example. Many surf shops have implemented this strategy by stocking skateboards and even snow skis and snowboards to pump up sales during the winter months.

When diversifying, consider new products that complement your existing ones, rather that straying into areas that aren’t a good fit with your business.

Shift Your Focus
This is similar to the first strategy, but for more service-oriented companies.

A landscaper might concentrate on building retaining walls and tackling other big projects during the non-growing season.

Other examples: A pool cleaner could focus on making repairs and doing routine pool maintenance during the winter months. A mobile car detailer could offer oil changes when it’s too cold and wet for customer’s to care about getting their cars cleaned.

Increase Your Visibility
You may be able to increase sales during slow cycles by increasing your advertising and marketing at exactly these times.

Rather than spend money on traditional advertising, though, consider low-cost online marketing strategies.

With an e-newsletter, for example, you can continue the ongoing communications you’ve already established with your customers year-round. There’s little additional cost involved in sending a few extra e-mails during your slow season.

Whatever marketing channel you choose, be sure to emphasize the different products and services you have to offer during the off-season.

Also keep in mind that you’ll likely have less cash on hand during this time, so you should budget for this expense and set the money aside during your peak season when cash is flush.

Switch Your Niche
This is a common strategy among restaurants and other businesses located in seasonal tourist destinations.

During peak season, they cater to tourists by providing a fun and unique experience for these visitors. But during the off-season, they focus their marketing efforts on locals, a completely different customer niche.

This might mean offering more value (like larger portions or special menu items at a restaurant); promoting the more relaxed, less-crowded atmosphere of the off-season; or offering banquet facilities for large group outings.

Offer Discounts And Coupons
This ties into the niche strategy, because it’s likely that customers willing to pay a premium price during your peak season are different from the more price-conscious customers you might target during the off-season.

So the restaurant that’s tourism dependent might have a weekly “locals only” promotion during the slow season in which locals receive 10 percent off. Similarly, a bed and breakfast might offer a discount to locals who want a get-away weekend during the off-season.

Before implementing any discounting strategy, however, you should consider the impact it will have on your revenue and bottom line. The goal of increasing sales must always be balanced against the need to maintain margins. Higher sales with nonexistent margins or losses is a recipe for business failure.

Expand Your Horizons
You may be able use the Internet to market to customers worldwide year-round.

A retailer that sells snow skis and snowboards, for example, could set up an online store where enthusiasts on the other side of the world could buy from him. In this way, the seller “follows the season” around the globe.

(Posted September 2007)

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