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The following columns were first featured in the Square Banking newsletter. Aja Evans and Keila Hill-Trawick are not employees or consultants of Square, and the views expressed in this article are solely those of the authors and are not endorsed by Square.
The holiday season — from the Black Friday-Cyber Monday weekend to Christmas, Hanukkah, and Kwanzaa — is when customers give to friends, family, and loved ones. How can Square sellers capitalize on the surge in consumer spending and engage customers? Two entrepreneurs share their most profitable tips, including creative offerings, easy financial planning hacks, and how to use smart holiday tactics year-round.
1. Capitalize on the holiday spirit
Todd Bross, owner of Ruckus Donuts in Rockland, Maine, sells donuts packaged in boxes designed for Christmas, New Year’s, or whatever holiday is coming up. He says it significantly boosts revenue: “[The themed box] might add 30 to 50% over what we would typically sell during that same period,” Bross says. They also make excellent gifts, encouraging customers to purchase more than they typically would.
Bross also uses the holidays to create an aura of exclusivity: for New Year’s, he makes a champagne-flavored limited-edition donut called the Auld Lang Syne, available just for New Year’s Day. Not only does it bring customers in the door (“they don’t want to wait another 364 days to get it”), it also becomes the reason customers want to return and try something new with each celebration.
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2. Prep the halls — early
Sisters Emily and Andrea Dornbusch, owners of Lovewell Tea and Coffee in Ventura, California, begin preparing for the holiday season in the summer.
Emily Dornbusch says she plans seasonal menus and store displays throughout the year by being attuned to her customers: “Success came from being flexible and staying sensitive to our customers’ needs.”
The Dornbuschs’ start stocking up on holiday merchandise — such as cards, sweatshirts, and other offerings — in the summer, as early as June. They apply the Profit First methodology (surfaced by the Square Readers Book Club!) to allocate funds automatically and manage their spending effectively. “It has been a game-changer for us,” she says. “It allows us to set aside funds for merchandise and holiday expenses well in advance, so we’re never caught off guard when the rush hits.”
Create a Square Savings folder so you’re ready for the holidays, taxes, or anything else.
3. Spread cheer through strategic collaborations
Successful holiday tactics can be used in your business after the holiday rush, too. To boost everyday sales, Ruckus Donuts has diversified its offerings via wholesale partnerships (in this case, offering branded donuts for corporate sales), which account for 10% of Ruckus’ revenue annually. “It’s nice that at the beginning of the week, you know you’ve already [had a certain amount of sales] before doing anything else,” said Bross. “Plus, it gives great exposure to people who may not be familiar with your main storefront.”
They also participate in community events and collaborate with other local businesses. Ruckus provides a local restaurant with unglazed donuts to use as buns for burgers, for example.“These additional revenue streams help mitigate the impact of seasonality, ensuring that the business remains profitable throughout the year,” Bross adds.
4. Get ahead of the holidays with Square tools
“Square products play a vital role in Lovewell’s day-to-day operations during the holiday season,” said Emily Dornbusch adding that Square Savings in particular was critical. “Using Square helps us confidently set aside money for big expenses like staff bonuses and merchandise, knowing we have a safety net.”
The Dornbuschs use the Square data analytics tools (tallying which seasonal items are popular with customers) to inform their menu creation, anticipate customer preferences, and make staffing decisions to manage holiday crowds.
Square Gift Cards and portable POS systems are also must-have tools for their pop-up events, making it easy for customers to earn loyalty rewards across both their stores.
Keep your customers coming back with rewards through Square Loyalty.
5. Holi-DIY
And if capitalizing on traditional holidays isn’t enough, you can always create special days in-store. Lovewell does just that, hosting Harry Potter (July 31) and Star Wars (May 4) days at their store. (Of course, themed offerings include Butterbeer and Patronus Elixir.) “They’re always a hit,” said Emily Dornbusch. “Creating these themed events with exclusive merchandise and fun menu items has really helped us connect with our customers and keep them coming back.”
Finance in Focus: Keep your team happy when it’s hectic
Aja Evans is a licensed mental health counselor who specializes in financial therapy. She owns and operates a private practice in New York City.
Customer service is the foundation of any successful business, and your staff are the cinder blocks. How do you continue to boost morale, keep talented seasonal staff, and provide a motivating place where people want to work, even during one of the busiest periods of the year?
Get staff involved. Ask your team for feedback, and take their suggestions for ways to improve the business. It not only allows them to feel heard but also gives them an opportunity to showcase their ideas. It lets them know you care about their perspective.
Check in. Make sure your staff knows that while they’re showing up for your dreams, you want to foster their growth as well. Ask them what their goals are, and take time to make sure they are getting more than just a paycheck. This goes a long way toward feeling valued.
Offer perks. Show your appreciation for their dedication through monetary raises or bonuses, a day off, or a fun staff outing or event. Let them know how grateful you are.
Good With Numbers: 3 money tips for extending your hours
Keila Hill-Trawick is founder and CEO of Little Fish Accounting, a boutique CPA firm dedicated to serving microbusinesses through accounting and tax support.
The holidays are around the corner, and you may be thinking about setting holiday hours to prepare for a potential rise in shoppers. Here are three things to keep in mind before you commit to keeping your doors open later.
- Think about the overhead. For example, the cost of paying employees and utilities to stay open longer may cut into the revenue expected from additional sales. You may want to start by offering extended hours on specific days, especially when you’re expecting higher than normal foot traffic.
- Consider the additional costs. You may require additional security to stay open late, or you may need to factor in paying multiple employees instead of just one.
- Have an online presence for 24-hour sales. Simple strategies like adding a QR code to your “closed” sign could offer potential customers the opportunity to buy from you even when there isn’t anyone available to take their order in person.
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