Now that the holiday season is over, many businesses are looking to reduce stock by running some sort of sale.
There’s no denying that the past few years have not been easy for retail businesses.
Why not make a concentrated and strategic push to increase sales and reduce the stock of old and out of season inventory?
If it has been a particularly hard year for you, you may be considering hiring a going out of business sales consultant in Canada.
If this is the case, let Silverman Consulting and Retail Services deliver success for you.
We will help you through this difficult time no matter what the reason for your decision to close up shop.
But if you’re not ready to throw in the towel just yet and you’re thinking of holding an end of season sale, be sure to do it right.
Why Run An End Of Season Sale?
There are many reasons to run an end of season sale:
- To liquidate your aged inventory
- To move seasonal items, for example at the end of the Christmas season
- To encourage regular customers to shop with you again after a busy season
- To reengage customers who have not visited your store in a while
- To target new customers by running a promotion
Does this sound like a good idea for your business?
Read on.
Common Mistakes With Running An End Of Season Sale
Let’s take a look at some of the most common mistakes business owners make when running an end of season sale.
1. Running Them Too Frequently
While a clearance sale is a great way to sell off older stock, your profitability margin on these items becomes considerably less.
One of the biggest mistakes you can make is to run a clearance sale too often.
If you hold a sale at the end of every season, for example, you may unintentionally begin to encourage your customers to wait until season’s end to buy from you.
In addition, you will attract customers who are only looking for a bargain.
They may become regular customers, but they will not support your business until there’s a deal.
Instead of racing to running an end of season sale, consider remerchandising your store – that can help draw more eyes to product that isn’t moving like you hope.
2. Not Having Enough Stock
Nothing looks worse than an empty sales floor during a clearance sale.
You want your sale to drive traffic, not drive it away.
Of course, a successful sale does aim to reduce your inventory.
But empty shelves suggest to the customer that they’ve missed out on the good stuff.
Don’t promote the sale unless you have adequate stock to run it.
3. Not Staffing Appropriately
A sale will likely bring in more traffic, and as a result you’ll need to have enough staff to handle the extra customers.
When everything is on sale, your customer may feel a sense of urgency, and they will be rooting through your products to find the best deals.
Do you notice that your sale bin is always the messiest area of the store?
Keeping your sales floor organized and well stocked goes a long way to moving your product.
So schedule your staff to tidy up the sales floor frequently.
A clean store is easier to shop and will also result in less damage to your stock.
How To Run A Successful End Of Season Sale
If you do it properly, an end of season sale can bring you extra revenue and attract new customers.
Let’s take a look at some of the best practices to keep in mind when planning your sale.
1. Have A Goal In Mind
A good sale works best if you promote it.
But make sure you know who you’re promoting it to.
Decide who to target with your end of season sale, and tailor the message accordingly.
If you have loyal customers who follow you on social media, spread the word that you want to reward their loyalty with some discounts.
Plan an email newsletter targeting customers who have not visited you in a while, to remind them of the great product you have on discount.
An end of season sale is a great way to attract new customers, so tailor some of your marketing to customers who will visit you for the first time.
Each of these three markets should have its own unique message.
A targeted ad campaign on Facebook or flyers in local businesses allow you to reach out to those who don’t currently follow you.
2. Know What You’re Selling
A sale is an opportunity to move the product that is not moving.
So don’t give preference to your fastest moving items, they will continue to sell.
Do your research and organize and discount your inventory appropriately before your sale begins.
Remember the money you make can hold you over during the softer months and can also be used to buy new faster moving inventory that will continue to make you money throughout the year.
If you are running a store wide sale, then merchandise the items you want to move into prime locations within your store.
Feature the products that you have the most of online and on your social media.
Use your inventory management system to identify the oldest inventory and decide which products you need to move the most.
3. Know When And How You’re Running Your Sale
You want your sale to be a success, which means spreading the word far and wide.
But to achieve your goals, it’s important to be clear about what you are selling, and for how long.
If you plan to run a sale on your website, make sure the end date is clear.
Plan to communicate with customers any way you can – mailing list, email, phone call, text, social media – before, during and on the final day of the sale.
Also, use the event to build your points of contact and collect more customers’ info and their preferred method of contact.
Place clear signage in your store that lets people know what is on sale.
And don’t forget about your employees.
Sometime your employees can be some of your best customers.
Make sure everyone understands the sale and feels comfortable answering the many questions they get from customers.
If you empower everyone with the right information, an end of season sale can be a fun event for all.
Get In Touch With Silverman Consulting And Retail Services Today
With careful planning, keeping in mind all of the points discussed above, an end of season sale can be a great success!
Perhaps it will give your business the boost it needs through a slower time of the year.
Or perhaps it is time for other options for your business.
If you have been considering a change and think it is time to move or close your business, our specialists at Silverman Consulting and Retail Services are the people to turn to.
The decision to close is a big one, so it’s time to get the experts involved.
If you want to book a consultation or simply have questions about the right options for you, contact us today.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069