It’s on again!
The race to Valentines and the most profitable busy season of the year! To increase your profitability this year, simply follow this easy formula:
- Check your sales from last year.
- Pre-book 70% of last year’s sales at incredibly low pre-season prices.
- Buy the remainder as the season gets closer.
Super easy and sensible!
Profitability is about buying. Plain and simple. The market will always only bear what it will, and someone can always undercut your prices in order to steal your clients. Does that mean that we should always endeavor to be the lowest price on the block? No. Low prices are a great way to move millions of items, but if you move a million items at a penny per unit profit, was it worth it?
As a wise man once told me “You don’t make money selling, you make money buying”. Sounds kind of backwards, doesn’t it? It’s not. Breaking it down, you’ll notice that he said “make money”. He didn’t say “create sales”, “market product”, or “run a business”. That’s not the focus here. The focus is how to “make money”. Profitability is key to running a successful business, and that’s what he was talking about.
A prime example of “buying low and selling high” is pre-booking product for Valentines.
Assume you are trying to anticipate Valentines sales for this upcoming year. No one knows the future, but if you can imagine that your sales this year will be similar to your sales from last year, then there’s no need for prognostication.
Simply take 70% of your sales from last year and pre-purchase that amount during the pre-book phase of the market. Glass and supplies are items that don’t change radically from year to year, so pre-booking similar items to last year’s sales makes sense. Especially this time of year, before the season starts. Roses are always the top sellers, and foliages and fillers hardly ever change. Traditional items like these are where you can really increase your profitability. Once peak purchasing (say 2 weeks prior to Vday) begins, prices will be at their high for the year. Saving 30% on your purchasing now can make a huge difference in your overall yearly profits.
Thanks so much for visiting us on our new webpage, and we hope you come back often. Take a look around, and tell us how much you like what you see?
Here’s a quick tour:
On the right is our calendar, and all the special sales, holidays, and floral holiday dates. Check this feed whenever you come here to see what’s coming up!
Just below that is a fun little feature called “Ask the Experts.” Here at Halls we pride … Read More