Peaks and campaigns.
WHAT SEASONALITY DOES
Concentrates sales into periods, with quiet times between.
WHAT TO ESTABLISH
Your own pattern, from records.
WHY FROM RECORDS
Recollection exaggerates both peaks and troughs.
WHAT TO PLAN FOR PEAKS
Stock, ordered early enough Additional staff Extended hours, if justified Cash to fund the stock
WHY CASH FIRST
Peak stock is paid for before the peak.
WHAT TO PLAN FOR TROUGHS
Reduced ordering Reduced staffing Cash reserves
WHAT TO AVOID
Ordering peak quantities too late Being left with seasonal stock afterwards
WHAT TO DO ABOUT LEFTOVER SEASONAL STOCK
Clear it promptly.
WHY PROMPTLY
Its value falls the longer you hold it.
WHAT PROMOTIONS ARE FOR
Attracting customers Clearing stock Increasing transaction value
WHAT TO ESTABLISH BEFORE ANY PROMOTION
What it is for, and what result would justify it.
WHAT TO CALCULATE
The margin sacrificed, and the volume needed to compensate.
WHAT TO AVOID
Discounting items that sell well anyway Promotions that train customers to wait
WHY THAT SECOND POINT
Regular discounting makes full price feel unreasonable.
WHAT TO MEASURE
Sales during and after the promotion.
WHY AFTERWARDS
Promotions frequently pull forward sales rather than creating them.
