Impacts Of Seasonal Demand On Your Business
Your personal finances are affected by different seasons throughout the year. For example, you may spend more around the holiday season, or a little more in the summer when you book vacations.
You might also find you spend less in between these times, so you still manage to balance your finances out.
You might be hit with sudden emergency expenses and look at utilising a short term loan to get you through it. However, your business can be just as impacted by similar changes, and it might not be so easy to get back on track.
Here are some of the impacts seasonal demands can have on your business.
One of the most common problems businesses face throughout the year is a decrease in customers. If you’re situated in a relatively small place, you may notice that during the summer you have fewer customers on a more regular basis.
This could be because they’ve gone on vacation themselves, or they’re out enjoying the sunny weather.
Summer can be a hard time for a lot of businesses unless you’re geared towards this time of year.
You may notice an influx of customers who take away their products instead of staying inside too. Generally, if people are taken away, they will purchase less as they don’t want to carry it all with them.
If you run an online business, you still might see a decrease in customers, as vacations take precedent over online shopping at this time of year. This means you might have to change your approach to try and attract more customers.
On the other hand, some seasonal changes can bring about a massive increase in custom. The holiday season is the best example of this, as people spend more on gifts during the winter months than any other time of the year.
These busier periods can help to make up for any losses you made during the warmer months, so it’s essential that you really drive sales when the holidays approach.
Just like customers, your staff will want to take some time off as well for vacations. Typically, they may want to do so in the summer, and this can be a benefit to you.
If you have more staff on holiday, you don’t need to worry about overstaffing a quiet day.
However, you might find this hinders you during busier seasons, so you want to make sure you have the appropriate number of staff on hand. Although everyone will want time off during the holiday season, try to ensure you aren’t left short-staffed when you need them the most.
The supply chain can change through the year too and this can have a direct impact on your business.
For example, if you rely on local produce or materials, the seasons may dictate when they’re available. This may mean that when they’re out of season, you pay more, and when they’re at their peak, you pay less.
You might notice stock being less available during busier times of the year as well, so make sure you always have a good stock of what you need.
Your marketing should reflect the time of year if you want it to be the most effective. It’s not good running the same advert all year round if it doesn’t correlate to the season. The winter and summer months are the perfect time to change up your advertising.
If you find that you’re a lot quieter in the middle of the year, it might be a good idea to invest a little more into your marketing.
This way you can reach more potential customers as your current one has been reduced. In the holiday season, you should try and update your marketing to reflect the time of year.
However, as most businesses are busier at this time, you might not need to spend as much on marketing.
When you’re in the peak of the busiest months for your business, you might miss the quieter times.
However, embracing the challenge will allow your business to grow even more. Although you may face quieter times during the year, don’t let them get you down either.
Use those moments to reflect and discover new ways to boost your business so you’re better equipped to deal with the seasonal demands.
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