Retail Optimism on the Rise – What it Means for Your Business
According to recent surveys, sales optimism is at its highest level in eight years. Consumers are expected to spend more in the March quarter compared to the same period last year. Many small businesses are taking initiative and increasing their advertising efforts, extending their trading hours and investing in new technologies to increase efficiency. They are also introducing new pricing strategies, differentiating and localising their marketing and seeking out better management systems for keeping costs down.
As optimism rises, industry experts predict actual sales figures will rise as well. If you’re thinking about generating extra sales from marketing or innovation, you’ll benefit from a quick cash flow examination.
The main purpose of cash flow management is to assist business owners in setting goals for future expenditure in order to ensure that you have the right amount set aside for when it is required. By implementing a stricter cash flow management, businesses are better able to meet financial commitments as they fall due. If you look at the levels of working cash you have and what you have put aside, you’ll be able to make a smarter decision about how much to invest in trying to generate sales in light of this optimism.
Another key facet to think about is your pricing strategy. In order to determine which pricing strategy to employ during this period of optimism, you need to understand the market environment in which you operate your business and assess who your competitors are and how much they are charging in order to make a considered decision.
Most small businesses are implementing value driven pricing, setting prices based on what the consumer is likely to pay, and on the ‘value’ of the product or service. Consumers are now more conscious driven by what the values and benefits a product or service can offer.
It’s been a turbulent few years, but this level of optimism is encouraging. If you need some business planning advice or have further queries on business management, please contact The Quinn Group by calling 1300 QUINNS (784 667) or submit an online enquiry to organise a meeting with one of our professionals.