Seasonal Demand: How to Manage Shifts in Business

Seasonal demand is no stranger to home service businesses. Many home service industries see an influx of business in summer but slow down in winter (and vice versa). Knowing how to manage seasonal demand will keep your business afloat. Need help figuring out where to start? Let’s look.

What is seasonal demand?

Seasonal demand refers to the inconsistency in work you see throughout the year due to changes like the weather and seasonal activity.

For example, landscaping occurs in many parts of the country during the spring and summer but dramatically decreases in winter. Clients need their furnaces fixed in the winter but ignore these issues when it’s hot outside. Seasonal businesses get busy during certain months but taper off in others.

How does seasonal demand affect operations?

Seasonal demand is responsible for the ebbs and flows you see throughout the year. It will increase your workload in certain months and decrease it in others. It’s important to understand the pros and cons.

Pros of seasonal demand

• Increased demand. Certain months will see customer demand skyrocket. You’ll be busy providing quotes, managing jobs, and upselling services. Managing seasonal demand is essential to stay on top of everything.
• Maximized sales. More work means more sales. During these months, you’ll pull in most of your yearly revenue.
• Targeted marketing strategy. Offer promotions and start marketing before peak season. Being proactive lets you capitalize on seasonality and get ahead of the curve.
• Service diversity. During slower months, you can expand the services you offer to keep revenue flowing. This diversity is important for seasonal businesses like landscaping. What can you offer if you can’t maintain clients’ lawns during the winter? Jobs like leaf removal or Christmas light installations can keep your business running. 

Cons of seasonal demand

• Competition. You’ll have stiff competition with other businesses that offer the same services. Use effective pricing strategies to drive sales and remain competitive. Offering referral programs also helps attract and maintain new clients in competitive fields.
• Temporary staff. During peak periods, hiring temporary staff is often necessary. While more work gets covered, these team members are potentially unmotivated. They know they won’t be sticking around and may slack off. Keeping employees engaged and happy while working is essential so they’re reliable.
• Slow cash flow. Less work equals less income, so it’s essential to know how to predict seasonal fluctuations. You can offer clients incentives like paying deposits to secure projects. Forecasting and managing seasonal demand in advance makes dealing with lulls in work easier.

How to forecast and manage seasonal demand

Managing seasonal demand is necessary. Many business owners know the basics, but how do you stay afloat year-round? Let’s break things down.

1. Forecast seasonal sales based on past data

You’ll need historical data from past business years to accurately predict upcoming seasons. Past sales and project numbers will show when the busiest season is. Then, you can see how much work to expect and how many resources you’ll need. You’ll also see when work slows down.

This information allows you to plan a ramp-up period, divide resources and staff, and prepare for the off-season.

Forecasting seasonal demand is much easier if you use field service management software to run your business. A tool like Jobber allows you to find and leverage key business metrics.

Look for these types of reports to get help with your forecasting:

• Financial reports: Including profit and loss, invoice details, and payment details to help you see revenue trends over time.
• Work reports: Job and visit details reports can show you trends in job completion and employee productivity.
• Client reports: Client and property details reports give insights into client behavior and seasonal demand.