Craft Focus - Dec 2017/Jan 2018 (Issue 64)

With the New Year just around the corner, it’s hard to believe how fast 2017 has gone. And, for craft retailers, as the Christmas season draws to a close, attention will turn to one thing – the January sales! The January sales have almost become a holiday of their own, but before you start slashing your prices it’s important to take a step back and think about the pros and cons of running a sale event. In this issue, we talk about how to make the most of New Year price cuts. Kick off the New Year The January sales can be the perfect kick-start to a new year. They’re a great opportunity to sell off your older stock and clear some shelf space for any new products you spot at the 2018 trade shows, such as CHSI Stitches. Customers look forward to the January sales and will anticipate offers and savings. Some crafty ones (pardon the pun) might even have put some money to one side to secure some bargains. So, this seasonal opportunity can offer craft businesses the potential to increase sales revenue at an otherwise quiet time of the year. Competitive pressure While these sales are hugely popular, they’re also very competitive. There’s often a lot of pressure to offer the best deals, so be careful not to drive your prices down too much in a bid to compete with larger businesses. You need to stand out from the competition. Do you have big reductions on a limited amount of stock? Are you running a quirky deal? For example, if a customer spends over a certain amount can they get a free gift with their purchase? Can customers be entered into a prize draw every time they purchase? Everyone loves a freebie so think about adding value for your customers! January sales are also very time-consuming in my experience. Running a sale of this magnitude doesn’t just happen by itself. It takes time and effort to prepare for one, which can sometimes be tricky alongside all your other Christmas activity, and hopefully the time for you to have a break too. Decide on your main offers So, if you do decide to go ahead with a January sale, how can you make sure you do it right? • First off, think about which deals you want to shout about, select two or three key offers that will really get your customers talking. • Word of mouth is a powerful thing so let your regular customers know what you’ve got coming up and with any luck they’ll spread the word for you. • Shout about what you’re doing on social media as well, you could even create a Facebook event for your sale period to reach a wider audience. Building on sales Once you’ve got customers through the door wow them with your great customer service, even during very busy periods, to encourage them to shop with you beyond the sale season. It’s also a great opportunity to build out your customer database to use in future marketing activity. So, think about how you can build this into your sales activity. Could customers get a little extra discount if they complete a contact form or a one-of-a-kind discount for filling in a survey? This doesn’t have to be limited to your store either, think about replicating this if you sell online as well. Finally, while it might be a discount sale, it’s also the perfect chance to up-sell. Try to encourage further spending wherever you can. For example, you could offer a percentage off products such as card and paper if a customer purchases dies or pens. Think about combining complementary products to create special deals and make sure you tailor your offers to your customers to encourage further spending. In short, the January sales can be hugely beneficial to your craft business, but only if you plan and deliver them right. Hopefully these tips will help you along the way to making sure you get the most out of them. That way you can relax knowing everything is in hand and enjoy those left-over mince pies! Sara Davies MBE, founder of Crafter’s Companion, discusses how to take advantage of the January sales how to avoid the January blues Sara Davies MBE, founder of Crafter’s Companion and Durham-born craft entrepreneur, crafterscompaniontrade.co.uk business tips craft focus 105