Friday, December 31, 2010

Happy clam dancing.

If you had told me going into December, that I'd be within 10% of last year's sales this month, I'd have been as happy as a clam.

If you had told me that I'd be within 5% of last year, I'd have danced a jig. A happy clam dancing jig.

If you had told me I would actually exceed last year, well -- I'd have done an happy clam dancing ballet for you.

In the end, I'm saved from having to do a happy clam dancing ballet by a grand total of ----$112.42.

For goodness sake, if I'd known I was going to be that close, I'd have stayed late a couple of extra nights or something. This is a statistically insignificant percentage down from last year, less than 1/2 of 1%.

I think this is an especially good number since last year was the 4th month of a 7 month increase in business, so to match that is really accomplishing something.



When the national media reports 3 or 4% ups or downs as significant, a 10% drop may seem rather drastic. But actually, at least in my business, I tend to see regular increases or decreases in that range.

A 10% drop, in fact, is pretty easy to handle. A slight adjustment to my spending and everything is fine and no one will notice. Sometimes, I can even adjust mid-month and hit my goals. Even a 15% difference can be handled, if not quite as easily.

Now 20% differences or more, that's takes more effort not to be harmed. But, I fully expected a 20% drop.

Most of the last nine months have been in the easily adjustable range, except for two significant exceptions. In both August and Sept., I was down 25% or so, and what that meant was that my credit card balance did not get zeroed out like I prefer at the end of every busy season. I had to put that off until this Holiday Season.

Anyway, I went into this season planning for a15% decrease, with the flexibility in my mid-month spending to adjust down to 20% or up to 10%. When I saw Christmas was going to be better than I expected, I started making some extra boardgame and new book orders.

The biggest and most effective change I've made in the second half of this year, was to make my "savings" automatic. I have a set amount pulled out at the same time every month, so it is necessary for me to plan or budget for it.

It is turning out to be much easier to accomplish savings this way, than the way I've been trying to do it for years -- attempting to squeeze some profits out at the end of the month. Making it a solid part of my budget, and then needing only to meet that budget, has made a huge difference.

It meant, for instance, that this Christmas I was able to spend the extra profits I was making on more product, because I knew the savings were already taken care of.

Apparently I just needed that extra step -- the impersonal withdrawal of a set amount each month. Shrug. If it works, it works.


So I can take every bill I have, pay them in full, zero out the credit cards and lines of credit, and have a little pocket change left over.

I'll go into more detail later --

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