Holidays are good for business, and you can increase your sales overnight with a bit of effort. That said, it is important to note that in order to increase sales during any holiday is usually easier said than done.
It takes a lot of planning on your part, and while it is no mean feat, it is certainly doable if you know how to go about it.
The 4th of July is right around the corner and is a perfect opportunity for you to increase sales and boost your business, that’s why we have created this short but sweet guide that’ll help you.
Why make a sale
For most businesses, daily revenue is bound to go down from time to time. Profits during the slow months are minimal and some business owners have a hard time keeping the business afloat when the revenue goes down.
There are many ways that owners can ensure that their business continues to generate revenue. Holding a sale is just one of the most effective ones.
A sale comes with many benefits. Aside from ensuring that your current customers keep coming back for more, a sale will also bring new customers to your door and ensure that you increase revenue for that day.
If new customers like what they see, then they will surely come back even when you are not having a sale. They will also be more likely to recommend your store to a friend and this translates to increased sales and higher profits.
A sale during the holidays makes sense for different reasons. These include:
- The customer is planning to buy, whether it is from you or your competitor. A sale makes sure they choose you.
- Consumers generally seek discounts and deals during the holiday season. Most of the consumers will settle for the provider offering the best specials even if they normally buy from a different store or supplier.
- It gives you a competitive advantage over others selling their products at normal prices.
Increase sales during the 4th of July
Sales-wise, July is not a great month, especially for retailers.
Sales tend to dip around this time and with the 4th of July holiday, things tend to be a bit sluggish, as people take a break to just chill. Don’t worry, this does not mean that you cannot make huge sales this time of year. If you pick the right products, you can increase sales in the days surrounding this National American holiday.
In just a week in July, you can make enough sales to cushion your business from the tough months ahead. First, you have to eliminate the pitfalls that have seen many fail to attract a decent flow of customers during a holiday sale.
These common mistakes include:
Failing to use social media
In this digital era, social media is a powerful tool that is quite affordable compared to other forms of marketing (or if you don’t run ads, it’s completely free).
Advertise your upcoming sale on social media and tailor the information well so it can reach your target audience. Include images of the products that are discounted with their respective prices.
Not creating a sense of urgency
You have to urge your customers to buy before the holiday season is over. Aside from letting your customers know that you are planning a sale, you need to push them to buy fast.
You can incorporate a timer that shows customers that they only have a limited time before the sale is over. If you have a website, create pop-ups that remind visitors of the upcoming sale and urge them to buy before it is too late.
Not offering the right products
What does this mean?
If you want to cash in on any holiday, you have to ensure that the discounted products are somehow related to the holiday when possible. You could also try lumping the products into a package and offer a bigger discount for the entire package. This way, you end up selling more products and making higher profits.
Just search for the most sold products during this holiday and concentrate more on those ones.
Now that you know some of the basic things you need to remember when making a sale, you need to implement a few tips that are sure to make you stand out and stay ahead of the competition.
Here are some things you can do to attract more customers and increase sales for your business:
Offer some freebies
This does not have to be anything big or fancy. Giving out anything, from glow sticks or some sunglasses with a patriotic swag, can go a long way in attracting customers.
You can even try to give the gifts in exchange for your client’s email (which can be used in your emailing campaign). Gifts can also be offered to loyal customers.
You can also make competitions or contests and offer some free products to the winner. The competition must be organized in a way that creates awareness of the products so that you can increase sales.
Freebies not only create a positive vibe when it comes to your brand, but it also makes potential clients want to try other products. A cheap freebie can increase sales in a single day.
Stock on holiday merchandise
Stock the things most people are likely to buy for the 4th of July. You have to ensure that your stock comes early enough so you can also take care of the early shoppers.
Your stock has to be well thought-out, especially if you’re dealing with products that are specifically designed for the holiday. You do not want to be stuck in August with loads of flags that you can’t sell.
You can even go a step further and decorate your storefront will patriotic colors and some flags. This will make it more attractive to anyone that walks by and will get their attention. And if you have great discounts, they might become paying customers.
Run a holiday discount
Everyone likes to pay less, so offering a discount is among the fastest ways to bring more customers to your store. You can run promotions or sales on your best selling products or those slow moving products that are simply tying your capital.
Running a sale does wonders to attract your regular crowd and earn you some new customers.
While a sale is great, you have to ensure that you are making profits.
If you calculate the cost of sales first, then you’ll be able to make an informed decision on how much of your profits you can give up.
This does not mean that you have to settle for lower profits, far from it. A well thought out sale can attract more customers to your business, increase sales, and earn you more profits at the end of the day.
Here is how you calculate the cost of sales
It is also known as the cost of goods sold. The cost of sales is simply the accumulation of direct costs that go into the products you sell. This means that your gross profits are affected by the costs of sales.
If you don’t want to sacrifice your profits when reducing prices, all you need to do is figure out a way of reducing your cost of sales.
To calculate your cost of sales (COS), use this basic Formula:
Cost of sales= starting stock+ purchases – Ending Stock
Let us say that your starting stock is $10,000, your purchases come to $7500, and your ending stock is $ 4,000, your cost of sales will be:
COS = $10,000+$7500-$4000
Learn more on how to calculate the cost of sales
Knowing your cost of sales will help you when you are making a sale, but also when you are making business decisions: once you calculate the cost of sale, it is easy to see the products that are not performing well.
Knowing your cost of sales will also make it easy for you to determine the right price for your products. By reasonably pricing your products, you will attract more customers, increase sales and consequently increase your business profits.
Start preparing yourself for the 4th of July
There is no doubt that sales can have quite an impact as far as increasing your business revenue is concerned. A short holiday, like the 4th of July, may seem insignificant but if you take advantage of it, you can make more sales than you have made in other months.
To ensure that you maximize the holiday fully, ensure that you are fully stocked a week before the holiday. You can even go a step further and put ads online (like on Google or Facebook).
In addition, you could put a banner on the discounts you are offering right in front of your store. You will increase sales and enjoy higher profits in no time at all.
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