Each year, Valentine’s Day earnings reach an average of $13.19 billion.
That’s a big chunk of change! If you are a retail business (specifically a candy, flower or jewellery store) it is probably one of the busiest times of the year. But how can you ensure this year’s Valentine’s Day earnings are top notch? Leveraging your POS system is a good place to start. Here are five steps to make certain you’re maximizing your sales this V-Day.
Run Reports From Last Year
Unless it’s your first year in business, if you’ve been using a POS system, you should have valuable data from this time last year to reference. During the weeks before Christmas, we walked you through how to forecast trends for the holiday season. Though it might seem tedious, do the same for this time of year and determine your year-to-date sales volume compared to last year. Establishing a baseline can allow you to determine what you should expect from this year’s Valentine’s Day rush and what you can improve to increase sales throughout the holiday. By way of example, if you know that sales are up 20% from this time last year, it’s reasonable to expect that sales on Valentine’s Day will be as well. Take this information and apply it to the stock you’ll be ordering. You want to make certain you have sufficient stock that you don’t sell out, but not too much that you’ll be bogged down with items you can’t sell. If you’re looking for a little assistance with inventory, here’s how to show your inventory who’s boss.
If you’ve been diligently collecting email addresses together with your iPad-based POS, this listing is solid gold, so use it! You’re already coming up with amazing Valentine’s Day promotions and sales; so don’t keep them to yourself! The sooner you let your faithful (and new) customers know about discounts on your shop, the better. The worst thing you can do is announce promotions too late and miss out on business because your loyal customers already finished their shopping.
Send out one email a week prior to your promotion begins after which a follow-up email a couple of days before Valentine’s Days. Because the only thing worse than leaving your shopping to the last minute, is denying Valentine’s Day completely! If you need some guidance on how to use email marketing to boost sales, we’ve got your back. Checkout Email Marketing Matters: 5 Tips for Success.
Offer Coupons At The Bottom Of Your Receipts
Another great way to keep your clients in the loop and get them excited about a holiday is to market upcoming promotions in the bottom of receipts. You can also give new and loyal customers with coupons that they can use along with already-existing discounts. Trust us on this one; there is nothing clients like more than a discount in addition to a discount! We love them, do not you?
It is great to be able to forecast exactly what you anticipate for your Valentine’s Day sales, but it’s also important to know if these sales will happen. You might be expecting to make X dollar amount, but do you know what days of the week or what hours of the day are most profitable? In order to live up to your expectations, you need to be ready for when those clients come a-knocking. This means having a good sense of what your busiest days and times are in your store. Have a look at your current busiest days and times and make certain you have plenty additional staff scheduled to work those shifts.
It’s also important to be able to expect a rush. So if Saturdays have a tendency to be a slower day for you, but last year you saw a surge the day before the holiday, it’s best to expect it might happen again this year. So be prepared and program a few extra employees for this particular day.
Then…Use Your Strongest Employees
We have said it before, but we’ll say it again: You’re workers are your number one resource in conducting a smarter and more profitable business. And we hate to say it, but not all employees are creating equal. Though everyone on your staff has their own unique strengths, some are likely to be faster on their feet and thus more effective during peak hours. To ascertain who your most valuable employees are, run a’sales by employee’ report. The ones that are top-notch on your employees are the ones you will want to have on hand when things get hectic. So leverage those workers by offering them an additional change or asking them to switch to a busier one. You might need to make it worth their while, but if you describe it is because they’re a top employee, they’ll feel proud of their work and be more inclined to oblige. Next, if you’re looking for more information on staff direction, have a look at our post on how worker reporting with your POS can change your business.
Know Your Top Customers
You now know who your best workers are, but how well do you know your top clients? Using you POS, take a look to find out who your most loyal patrons are and make a note in each of their accounts. Next time they are in the store and checking out, ask them if they had anything particular in mind for Valentine’s Day and if there’s anything you can do to help them surprise their special someone. This won’t only give you a good idea for what you should be ordering, but it is great customer service. Your employees will be touched by the gesture and more likely to go back to your shop to make that special purchase.
Remember, much of preparing for the holidays is trial and error. The longer you are in business, the easier it will seem. And though there may be no scientific equation for maximizing your Valentine’s Day sales, if there was a magic wand, your POS system could just be it.
HERE ARE The TIPS FOR SAVING MONEY WITH YOUR POS
There are great suggestions and tips for saving money for business owners, and then there are bad ones.
Leveraging your iPad-based POS system, however, is almost always a wise bet for store owners. So sit back, relax, and absorb our understanding so that you can start saving some cash.
1. Check Sales By Hour
Periodically checking your sales by hour can be one of the easiest ways to save your organization money. The important thing here is to remember that just because a day is profitable, doesn’t mean all hours of the day were. Recognize that your slower hours of the day — specifically the first and last few — instead of making you money, might actually be costing you money. Then, look at your earnings for that period of time. Are you making money? If you are not earning any money, or just dollars more than your overhead, it might make sense to close your store early, or open afterwards. You will not only save money, but can devote that time to company (or personal) tasks you have been meaning to handle.
2. Say Bye-Bye To Your Accountant
By using an accounting solution that works together with your point of sale applications, you’ll have access to clean and easy-to-understand reporting. You’ll no longer have to pay an accountant $65 an hour to arrange this information. You will save money by leveraging your POS and will become more familiar with the finances of your company. That is always a plus.
Pay Attention to Cost of Goods Sold (COGS) In Relation To Gross Profit
These are two numbers that if you are not paying attention to, you should start noticing ASAP. Examining your COGS (the quantity of money you pay to get an item) and gross profit, can save you money in the short term and drastically increase your gains down the road. Just because you earn $5 off both item A (which cost $95 and you sell for $100) and item B (which costs $5 and you sell for $10), doesn’t mean these things are made equal. It’s true that your gross profit from each item is $5, but how much did you need to spend up front to acquire every single? That’s the catch. If you’re spending $5 on the next item, you’re more likely able to buy a terrific number of item B than A, finally having the choice to sell more product and make more money. Cha-ching!
3. Bring Revenue Ideas To Save Money at Tax Time
No one likes tax season, including accountants. But by pulling accurate sales data in the POS system, you not only are simplifying the tax process for yourself, but also possibly saving yourself money. Rather than having to take the time to figure your final gross receipts, it is possible to simply pull the info out of your POS sales report and be confident in its accuracy. When both the gross receipts and the returns and allowances figures are correct, you can be certain you’re neither over or underpaying in your taxes.
Because, when it comes to taxes, Uncle Sam doesn’t mess around. He anticipates precision and will go after those that slack. Pulling reports from your POS system will minimize human error and help you avoid steep penalties. Want to find out more about POS and tax time? Check out our post on how POS software can save you money at tax time.