I’ve touched briefly on seasonal sales and it can get brutal for other times of the year when a business isn’t profitable. The problem is that this year, it is anybody’s guess (or everybody will guess correctly-sales will be down) as to how sales will be going. With business problems in the news, housing issues starting to get addressed, and the upcoming election, it might be rough for sales.
People will be holding onto whatever cash they have, some may have been laid off and others are waiting for the hammer to fall. Money will be tight.
My own take on the situation is that the following things might sell well this year for the holidays:
1. Anything under $40 for kids that is the next big thing or at least this season’s big thing, er except for tech items (I talk about tech later on in the post). People will still splurge for something if it is reasonably priced for their kids.
2. Popular video games that are sequels of hits that already have sold well or anything that is part of a popular licensing franchise (Barbie, Star Wars, etc). People find money for things that they want.
3. Chocolate. Anything made from chocolate will sell, unless the people who are getting the gifts have diabetes, are trying to lose weight (they still will take the chocolate – trust me), or are allergic to chocolate.
4. Things to help people cope with financial anxiety, tax preparation or making money. This will be true if whatever it is that is being sold is under $25. That seems to be a magic price point at the holidays.
5. Big screen monitors and tvs that were last year’s models. If the prices have dropped a lot, people will still find some money to buy things that they really don’t need but want to buy because they will be feeling better. Nothing fits the bill better than big screen tvs. Do people really need to spend between $800 and $4000 for a movie experience in their house if they are having a hard time making their mortgage payments? Of course not but that won’t stop them from blowing their cash on it anyways.
6. Inexpensive vacations. The price of gasoline has dropped a little bit here in the United States and some people are driving a little more. People still will be flying at holiday time (though not as much) and it could be some people will head for warmer climates or other countries if the price is right.
The next item isn’t really an item but a generalization:
7. Incoming tourists from other countries might do a lot of shopping here. Because the valuation of the dollar is low, we are getting a lot of Canadians, Europeans and Asians who are starting to come back here to shop. Unique items that are not available elsewhere or discount name brand items might sell well.
8. Clothing if it is priced inexpensively. Clothing can be reused (unless it has a Christmas Santa on it or a Hanukkah menorah) year round and is always a crowd pleaser if you can nail the fashion sense for the purpose who is the recipient of the gift.
9. Electronic gear. I am lumping new cell phones, iPods, and the latest tech in this category but the caveat going with it is that I don’t think people will upgrade as quickly to the latest tech because their wallets are tight. There are others though who always must have the “latest and greatest”.
I am sure there are other items. What can you think of?
Let me be the first to wish you one of many Early Happy Holidays and try to save SOME money!
Kim Isaac Greenblatt
Kim Isaac Greenblatt explains some things that might sell well for the holidays in his blog, profitable.