“In a chronically leaking boat, energy devoted to changing vessels is more productive than energy devoted to patching leaks.” -Warren Buffett
Seasonal sales changes
It’s January, so I know many of you are experiencing the beginning of the year revenue drop. Though some businesses thrive in the winter (I’m looking at you HVAC technicians), many of us experience a seasonal drop in sales this time of year. Our instinct is to fight this drop in sales with vigorous cuts to our retail prices, ads, and flash sales. Or sometimes we crawl into the fetal position debating our life choices, depending on your fight v flight tendency. But I’d like to suggest an alternative.
We’re going to look at a place called SeaWorld as an example. Amusement and Theme Parks notoriously struggle in the cold months. In the north especially, most parks even close when Fall starts rolling around the corner. I live in Texas, so not all of them close that early. But, statistically, people don’t want to spend all day with the wind in their face when the wind is freezing.
SeaWorld though, had a plan.
Christmas lights.
SeaWorld San Antonio boasts one of the largest Christmas light displays in the STATE. My mother was thrilled given my 6-year-old’s current obsession with sea creatures and coral. So, when she and my stepdad came to visit for the holiday season, we all packed up in a rental car and went to SeaWorld.
And it. Was. Frigid.
The funny thing is, she was here in the summer—and we didn’t go to SeaWorld then.
Lesson #1: Lean Into It
Amusement Parks are an extreme example. Though most of us do experience a flexibility to our revenue through seasonal changes, we don’t actually have to close up shop because the weatherman said it would be too cold or too hot today. But there is something very important to learn here.
Stop changing your prices for the season. If it is successful most of the year, it is successful. Stop changing it because people aren’t shopping right now, and PLEASE stop underselling its value hoping people will be impulsive enough to buy it. They might. But unless you have a 98% profit margin, you shouldn’t be slashing your prices and cutting into your profit to make sales. Reportedly, Coca-Cola disagrees. with the price in a vending machine getting lower in the Winter and higher in the Summer. But let’s be honest. They probably do have a 98% profit margin. They can afford it. #goals
Change what you’re offering.
Some products are not for Valentine’s Day, or Christmas or the beach. That’s OK. If you really want to fight a drop in revenue during a seasonal change, make something that is.
There is not slash great enough to the price of a SeaWorld ticket that would have made that New Year’s, water-filled trip make sense to me. Even if they had cut the price in HALF. I would’ve reacted with “but, why?”
But Christmas lights combined with something else my son also loves? That is a no-brainer. And even though I froze to death, it didn’t matter. We had an incredible time.
Offer something people do want this time of year.
Lesson #2: Take Advantage of Less Revenue
Yep. That’s what I meant to say.
Less revenue means fewer sales, fewer customers/clients, and my favorite—less busy.
I’m not suggesting to put your feet up and enjoy the time off, though I do always recommend that. But entrepreneurs are often a flurry of ideas and initiatives buzzing around with no time to make them happen.
Your slow seasons are a gift.
Some of my most successful products were made during my slow seasons. I’m a big fan of passive income. Start now. If you’ve wanted to add a new service, but needed to find and hire someone to do them at your clinic, start now. If you have three pages of an unfinished informational book on your computer, finish it now.
You have been given the gift of time. Which is in HIGH DEMAND with entrepreneurs and business owners of every variety. You don’t have to prop your feet up to enjoy the slow seasons. Self-motivate, and get to work!
If you aren't going to get to that big project you’ve wanted to do for years now…then when will you?
If you do get to it now, maybe next year’s slow season, won’t be quite so slow.
Lesson #3: It is just a slow season.
A flexibility to revenue throughout the year, does not a failing business make. You have not drowned, and (as my favorite girl band of the month Joseph would say) burn the white flag. This is not the time for giving up.
This. Is. Normal.
You got this.
We are all waiting for your next idea.
-Krissy J <3