In the time of a global pandemic, it seems that there is not much we can do to reduce the unprecedented impact on our economy. But as sure we have seen an increase in people playing free online blackjack in Canada to kill time, there is some guidance to compensate for lost in-store revenue. While these may not necessarily apply to everyone or every company, they are going to help a number of companies.
Tip №1 – Promote the use of gift card
In most cases, selling gift cards will provide businesses with an immediate infusion of cash. It also ensures that the customer will return to the company in due time. Especially if you are operating with especially thin margins, selling gift cards now can your company keep going until the pandemic dies down?
You can even work alongside complementary local businesses or discount gift cards to further incentivize customers. If you have to reduce the risk of human contact altogether, a digital gift card program included in your email marketing and social media campaigns is sure to be a hit.
Tip №2 – Sell the underperforming stock at a discount
There is likely to be a decline in demand for non-essential retail. If you are a business in this category, you are especially vulnerable to oversupply. You don’t want to have a great deal of money tied up in deadstock or inventory. This might be the perfect moment to address it.
Perform an ABC inventory analysis with your reporting apps and/or inventory management system to prioritize products by how much value they create for your business. Do you have products that individually contribute much value? If so, sell these products first in an effort to reduce carrying costs. Selling these products to liquidation retailers, bundling them or even heavily discounting these products will be the smart move now. Even though it may seem counterintuitive to smart business right now, it leaves room for stock that moves and provides you with much-needed cash flow.
Tip №3 – Pause any standing order you may have
You don’t want to be stuck with inventory you cannot move, so slowing production down may be a good idea for some retailers. This depends on the type of business you run and current demand patterns. Contact suppliers and rethink standing orders for raw materials. Your supplier relationship should defer or cancel the order as soon as you know more.
Tip №4 – Develop a pre-order strategy
Customers know that local retailers are especially facing a very difficult time. In order to help support local small businesses and ensure that they have enough cash for the moment, we’ve seen a range of community-based initiatives. One of the more popular options has become to ask customers for popular pre-order products now and either pay the full amount or a deposit for a promise to deliver the product/service later.
Tip №5 – Reduce your shipping costs where possible
Shipping costs are able to drastically reduce your margins. If you want to make sure that you are keeping as much money as possible, the following is always a good idea:
● Try local shipping – If you have customers who are buying your product locally (or close), a local delivery option may be an option. These local shipping rates are often much cheaper, and you can set them up to be applied during checkout to customers in your selected zone in many specific programs.
● No more fancy packaging – Even though it may feel good to send your items in a much fancier package, Canada Post does offer free packaging. Alternatively, you can manually fulfil orders where possible. Especially if you primarily have local customers.
While the COVID-19 pandemic is likely to have lasting effects, using these tips or hints is going to help you reduce the economic impact.