How to boost business when sales are slow
Ask FSB’s tips for keeping customers coming back year-round, even during the quiet seasons.
Lisa Jackson, Washington Terrace, Utah
I need a balance in my business. Some months I am swamped. Other months I have nothing. How can I market my services so that work comes in steadily, but slowly enough for me to handle each client with utmost care? Should I advertise a lot and put clients on a waiting list during busy times?
By Myrlande Davermann, Fortune Small Business contributor
Dear Lisa: First, figure out what drives your sudden business spikes. What generates the excess business when you’re swamped? Is that when you’re doing the most marketing? Once you know what prompts your business booms, you can create a marketing plan that will help optimize your schedule.
Putting your existing customers on a waiting list during busier periods may not be the way to go. Instead, you might want to hire some qualified contractors to help share the workload, suggests Kelly Davis, president of The Strategy Tree, an HR consulting firm.
“If you proactively build a team of talented individuals that are comfortable working on a contract basis, then you will have your team ready to deploy when you need their services,” she says.
If that isn’t a feasible option, Davis recommends looking into a date-specific direct mail campaign or advertisement. The goal is to encourage customers to use your services before a specific date, coinciding with a slower period for you.
Also, consider creating a customer referral program, she recommends. You can offer clients a bonus with each referral they make – but be sure to set out specific program parameters. Do you want to offer customers a cash bonus for referrals, or a discount on your services? Do referred customers need to remain a client of yours for a specific period of time before the bonus is paid?
“Many entrepreneurs make the mistake of forsaking their existing clientele in search of new customers. This mistake can cost you. So don’t do it,” says Thomas Freyvogel, an entrepreneur and business consultant.
Freyvogel agrees with Davis’s suggestion to offer referral incentives to your existing clientele. He also suggests giving out “preferred client” coupons discounting your services (again, during your slower times), sending out birthday coupons for a discount or free service, and offering incentives based on how long a client has stuck by you. For instance, you could offer customers a 10% discount after their first year with you, and a 20% discount after two years. Let your clients know that they are number one.
“You can always find new clients, but in order for the customer base to grow, you must hold on to your loyal fans,” Freyvogel advises.
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DiggI just wrote a long post that was discarded, don’t know it was great advice. Thanks for nothing
A local drive-in restaurant closes for winter, but leases their parking lot for Christmas tree sales.
our company can help your business by advertising 40 diffenet engine search like ” google, yahoo, yellowpage etc.
Depending on when your slow season is, government contracts can even things out…IF you have ample marketing resources to develop the business in the parts of the year outside the fiscal year’s fourth quarter, which tends to skew the spending with Use-or-lose money.
Remember: while federal fourth quarter is July – September, 46 of 50 states have fiscal years ending on June 30th.
Judy Bradt
Principal
Summit Insight
703 627 1074
http://www.summitinsight.com
Your last statment is the most important “you must hold on to your loyal fans”. My company spends all its efforts in helping companies stay better connected to its customers and prospects. The challenge we face is there are millions of Joe The Plumbers including painters, electricians, roofers, handymen that run their business on pen-paper-napkin-drywall which makes it next to impossible to stay connected with their customers in an efficient manner. The small business person must adapt to staying connected in the most speedy appealing way to their customers. We at http://www.MyOnlineToolbox.com spend all our efforts to do so for the contractor business that is by Americans for Americans.
Another tip is to use some of your businesses credit line to purchase advertising. Right now most typical businesses are running away from any expenses, but the big companies who will be here for the long haul are actually increasing their advertising budget to capture even more customers.
If you do not have business credit, I have used an online guide for Business Credit that helped me get a 30,000 credit card limit, without my personal credit guarantee in only a month. You can visit them at http://InsidersGuideToBusinessCredit.com.
I know the owner of a landscape architecture business. His primary customers are upscale homeowners, but that business tends to dry up during late summer and early winter. So each year at that time, he shifts his marketing focus to local businesses that are keen on keeping up appearances through the winter months. When spring rolls around and homeowners start thinking about pools and patios again, he shifts back.
You’ve got to make sure that your offering stays fresh and relevant all year round. If your main customer base is vanishing at certain times of the year, ask yourself if there’s a secondary base that can make up the difference.
Good luck!
This is a problem that effects a lot of our customers. They have seasonal businesses and they want to remain top of mind without spending marketing dollars on a year round basis. Our counsel is to invest in promotional products that will keep your brand top of mind. These are great for branding your company and reminding customer’s to think of your company when they are in the buying cycle. Be it magnets, pens, sticky-notes or even apparel these are marketing tools that customers keep and will have a long shelf life. With the today’s turbulent economy, it makes sense to spend marketing dollars on something that will last past a 30 second commercial. Check out Pinnacle Promotions for some ideas.
Something you learn after having been in business for a very long time is this- advertising works best when you’re already busy and feel like you can’t handle more customers. When things are slow, you can throw a lot of money at marketing, to very little effect.
Seasonality in business, especially smaller businesses, is the norm. You may never succeed in smoothing out the peaks & troughs. What yo do need to do is optimize those peaks so you can add as much to your bottom line as possible. Trying to convince people to spend money at a time they’re not thinking about your product is just too expensive for the minimal return.
And, as pointed out, definitely treat your best customers very well. Don’t ever put them on hold so you can take on new clients. Those returning customers are what keep you in business!
–Mike http://www.ChainReaction.com
I own a bustling small business, a private school advisory firm in New York City where getting into private preschools and K-12 is very, very difficult. Our biggest “seasons” are Feb-May and July-December. That said, I use the press and media to promote my business by providing press and media writers, producers and editors a great deal of news from the inside of the independent education industry — trends, theories, etc. AT ALL TIMES. There are a million stories out there about every type of business — go an research some in your own field and become well versed in them and you will have plenty of news (not to mention new expertise)
Amanda Uhry
Manhattan Private School Advisors
One thing that needs to be considered is the seasonality of your business. For example, if you are in the wedding industry your summer business is obviously going to boom more than in other times of the year. This doesn’t mean that money can’t be made. You just need to work harder and be more creative in attaining it.
I think this is very good advice.
You have to find out why you get spikes in business. Try surveying your customers and ask them.
I would like to offer you and all readers a free copy of my eBook, How to start a business from scratch…without having any.
http://www.sales-getter.com/FreeBook.htm
It addresses this and many more business situations.
Good luck,
LouieBernstein.com
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Consider building business credit while things are slow. This can help you avoid a similar situation in the future.
Sincerely,
Ilya Bodner
Small Business Owner
Initial Underwriting Group