Sunday, July 22, 2012

I love summer business.

I do so love the business in summer in Bend.

We get, I don't know, double? the number of walk-ins? Not only walk-ins, but tourists who are in the mood to spend money! Lovely.

Over the last two days, (Friday and Saturday) we did about two and a half times the normal business (yeah, yeah, it was a street closure. So sue me.) But when I examined what I would actually need to replace, it came in about 20% of what sold.

That's what I'm looking for.

I get the full profit margin from something that I don't have to replace. Whereas, anything I have to re-buy, is much less helpful. During the slow months, I'd say probably 80% of what sells needs to be replaced.

So how does this happen? And why doesn't it happen the rest of the year?

Because almost all those extra customers are new to the store. Everything in the store is new to them. Including stuff I've had around for years, including stuff I can't reorder even if I wanted to, including stuff that is dated. It's bonus. They get what they want, and I get to clear out some room.

Ironically, I tend to sell the "usual suspects" during the slow months. The steady, evergreen product that sells slowly but surely, and simply must be replaced as soon as possible. So not only are sales less, but so are the profits.

I'm pretty sure downtown Bend wouldn't be a viable place if it wasn't for summer and Christmas.
I can take those profits and pay off debts, firm up the inventory, and save for the slow months.

It took me years to realize that I could actually order less material in the busy months, instead of more. It's very counter-intuitive. I then tend to order more material in the slow months. It just works better.

There have been years when I ordered hardly anything in July and August, but then would be forced to order so much stuff in September, that it would wipe out the fall. So this year, I'm trying to replace the evergreens as they sell, so I don't face the big chunk at the end of summer.

If I had any advice for new businesses downtown, it would be to watch out for this pattern. Don't think the summer business is normal, and the rest of the year abnormal, unless you want to be constantly frustrated...

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