This is the most common example, but just like the products mentioned above, everything has a seasonality , so it’s important to be aware of it , more about Dispensary POS Software .
High demand seasonality
Among the changes in the market is the positive seasonality . The moment is of happiness for the sellers, because it is the best moment. A good example of a high demand seasonality is the pre-World Cup. Since the 1970 World Cup, televisions have been widely sold throughout the year, especially in May and June, in the run- up to the competition. This is when television manufacturers and vendors need to be alert if they are to make a big profit, as they will be in great demand .
The moment, however, requires calmness, for what should become profit can become loss. Positive seasonality requires the seller to have a sense of how much he will sell. A good alternative is to make a comparison with the previous year – in the case of television producers, with the previous World Cup – to get a sense of how much will be sold.
If this balance does not exist – for lack of information or just because the company is still new to the market – a good alternative is to analyze the competition . The tip here is knowing how to ask, because a producer with a different scale than yours may not be a good parameter for you.
All of this work will prevent you from having a stopped inventory if sales don’t materialize. And having stock is the same as standing money, limiting you from making other investments .
Be careful about positive seasonality, as overproduction can force you to do promotions that are not very favorable to you. (Image: Unsplash)
Low demand seasonality
Unlike positive seasonality , negative is that period when output will be down . Recalling the example given above about ice cream: in summer the ice cream will be high, but in winter? Of course there are regions where summer (in addition to being more intense) is longer lasting, where we can barely feel the difference when winter comes; but not all places are like this.
An alternative for those who sell products with such high seasonality is also to work with “inverse” products. An ice cream parlor, for example, could produce hot coffees and chocolates. Of course, these products will not be sold as much as the beloved ice cream, but they can be a way out to keep the cashier from almost standing still .
The tip here is that your “alternative” product complements your main product. That way, when one is down , the other is up, alternating together. It won’t do much good if you have two products up for six months if in the other half of the year both are down.
There are cases of small seasonality that must also be taken into account. The easiest example is that of the butcher on Good Friday. If the butcher doesn’t work with fish every day of the year, making an investment just for that particular day could be a bad deal. This is because he will need to spend money on a product that is not sure if it will be sold, as his clientele often buy the fish elsewhere .
This added to the fact that the red meat movement will be low or even zero ; It is important to note that it may be a good option to open the market.
The tip is planning
To be able to surf in positive seasonality and know how to circumvent the negative, it is important to know your company through planning . When you know when their output will go up / down , you can maneuver to make more profits and avoid losses . There are platforms today that can help you prepare for seasonal periods.