How Can Businesses Handle A Seasonal Spike In Sales?

A spike in sales can sometimes feel like a blessing and a curse. While you might appreciate the increase in profits, accommodating a shift in consumer spending habits can feel challenging if you are not prepared – a common concern for owners of small businesses just starting. However, you can make the most of this opportunity by forecasting, organizing, and planning accordingly. You may even find yourself able to maximize your sales by introducing seasonal offerings and innovative new products. 

In this guide, we dive deeper into how you can handle a seasonal spike in sales as a business to help you on your way to achieving sustainable growth and expansion.

Forecast Sales And Plan Accordingly

Forecasting is essential in business. Every successful entrepreneur knows just how important it is to have data-backed predictions to aid in their strategizing and decision-making processes. However, there are different forecasting techniques that will be appropriate for your business. For example, intuitive forecasting works well for small startups trading for under a year, with data that’s too limited to identify seasonal trends. In contrast, time series forecasting can be a good option for companies with access to at least a year’s worth of historical data.

You will want to make sure the data you are assessing to create your forecast is high quality – it should be accurate, complete, consistent, timely, and valid, and should not contain duplicate figures. Equipped with an accurate data-driven forecast, you can then plan your inventory accordingly, ensuring you have enough stock to meet the predicted increase in demand.

Use Inventory Management Software

Any spike in sales can be tricky to handle without inventory management tools, particularly if you are introducing new products or promotions that could further boost your sales alongside the influence of seasonal trends. By using software that is able to automate inventory management processes, you free up much of your time to focus on other tasks. Plus, these tools can help to further maximize your profits by reducing labor costs.

Tools that can be useful include point-of-sale (POS) systems, which allow you to track your products as they sell and will automate the reordering process in response. For warehouse inventory management, you may want to look for a system that uses barcoding or radio-frequency identification (RFID) capabilities. Unlike barcoding tools, RFID will allow you to track inventory without the need for scanner hardware.

Introduce Seasonal Offerings

Once you know how you are going to meet the spike in consumer demand during seasonal periods, you may want to start thinking about how you can scale your offerings. Annual shopping events like Black Friday and Cyber Monday offer a chance to promote your products with offers and sales. At the same time, seasonal holidays like Christmas provide a great opportunity to introduce new, on-trend, or even themed products and services to your market. 

You will want to launch your new products and promotions prior to the start of the season, to maintain a competitive position in the market. The data gathered during the forecasting process will help indicate the kinds of products your customers are looking for at any given time throughout the year.

Remember to promote your business and products in line with current consumer spending habits. For example, during cold weather periods, shopping from home tends to be favoured by consumers – so you will want to ensure your online marketing strategy is on point during the winter months. Stay on top of economic trends and keep an eye on your competitors’ marketing strategies to gain a competitive edge.

Embrace The Increase To Grow Your Business

While it can be challenging, particularly for new businesses, a seasonal spike in sales can also feel very exciting and be a wonderful opportunity to expand your business’s presence and solidify your place in the market. So long as you have the stock you need – and the employees and tools needed to help manage it – you can rise to this challenge easily. Equipped with an accurate forecast, specialist software, and a solid strategy for meeting the increased demand, you will have a great foundation to expand your business.

Looking for more tips and insights to help your business thrive? Subscribe to the Heroshe blog today to stay ahead of the curve with expert advice tailored to your needs.