Getting your business ready for the January sales.
As many business owners come to the end of a challenging year, there’s a light at the end of the tunnel lifting up their spirits: January sales.
Generally speaking, many businesses may experience a shift as the clock strikes midnight on New Year’s Eve. Consumers often begin spending at a higher rate, helping to increase business profits for the start of the calendar year.
If you’re an entrepreneur, you may be wondering what you can expect come January, and how you may be able to best capitalise on this boost in demand. Which means you may want to consider utilising the power of a double-digit sales event, like the 11.11 Alibaba Singles Day.
Here are four must-know facts for entrepreneurs about increasing sales in January, as well as pulling off a sales event:
1. Economic momentum may pick up in the new year
If your business has struggled with financial difficulties due to the impacts of Covid-19, there is hope for 2021. Many financial experts believe that the economy is starting to rebound after it’s first recession in decades, so it’s time to get into a forward-thinking mindset as January approaches.
The latest economic update from Bank of Queensland (BoQ) stated that it is widely agreed that the economy is improving thanks to many businesses reopening.
“Business and consumer confidence is on the up. The fiscal stimulus has been substantial. GDP growth will be strong in H2 of this year. So the economy will enter the New Year with a fair bit of momentum,” noted the BoQ report.
“Consumers agree that things are picking up. They believe that the economy will get better next year. And they are particularly optimistic about the medium-term outlook.”
Entrepreneurs who’ve experienced financial uncertainty throughout 2020 may be able to feel optimistic again, as the chances of double-digit sales in January are up thanks to this momentum.
2. Increased profits are helped by double-digit sale events
If you’re an entrepreneur you may be curious as to how you can boost your sales in January. One of the easiest ways to do so is through an online sales event.
Major events, such as Alibaba’s November Singles Day is a great example of how one company was able to turn an exercise in brand awareness into a $2.5 billion phenomenon. And it goes without saying that the success of this event comes down to the great discounts, and the finality of it being a single-day event.
And many Aussie brands have caught on, with New Years sales events essential in boosting January profits. Only this year Australian appliances brand, Winning Appliances, reported double-digit sales growth in January - despite a volatile retail environment. This was attributed to new year's sale events, as shoppers are making resolutions for the new year and shopping for themselves again - as opposed to family Christmas spending.
If you have an ecommerce business, with only a few weeks to go until January now may be the time to consider holding a January sales event. You may want to attempt your own double-digit sales event by holding it on 01.01.
Not sure what to sell? Typically, businesses may scramble to dump November/December sales stock in January, and customers know this and may go looking for bargains. Even consider discounting excess winter stock, for example, as we move into peak-summer.
3. It doesn’t have to be one day
While a double-digit sales event makes for a catchy and memorable headline, your business may also find success by extending the event for longer than a day.
Stuart Rammage, ecommerce director at UK-based Dixons Carphone, recommends week-long events for the best results.
“Fixed periods offer more sustained value… Running offers for the whole week is what we’ve found works best – maximising sales and ensuring the offer mix is right to drive footfall but not impact margin,” said Mr Rammage.
While the success of Singles Day has every ecommerce business keen to take a piece of the sales-event pie, it’s worth considering how you can get the best bang for your buck. Perhaps with the marketing and branding involved with a single day of sales, you may find it more profitable to extend the event for a week? Or, if your business turns five next year, for example, a five-day-long event could be a great way to increase brand awareness and boost your January profits.
As long as customers feel like they’re getting a limited time discount, the event may find success.
4. Any business can capitalise on New Year's Resolutions
Speaking of 2021 optimism, one of the biggest pushes for January spending are New Year’s Resolutions.
It goes without saying that spring-summer months are more lucrative for health-based businesses, such as gyms and yoga studios. But how can your business capitalise on the resolutions phenomenon to boost your January sales? You may need to think out of the box.
Your clients will naturally ‘resolve’ to keep expenses down in 2021. If your business involves ongoing services, consider offering discounted prices for new customers and clients during the first month(s) of 2021 - even if they join on a particular day, like a 01.01 sales event. Consider also offering free shipping or reduced fees in January to help encourage customers and clients to sign with you.
Whatever you decide, consider gaming the psychology of consumers and clients in January by capitalising on the New Year’s Resolution mindset.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].