Question :
How can I still make sales?

Question submitted 28/03/20 @ 01:23pm
Industry: Fashion
    • Up

      Tell us a bit more about your industry or line of business @Fire and we’d be ready to help

    • Up

      Hi Fire.

      I am going to take a stab and guess you might be in the business of selling products or services. There was a really good article written in The Register which is worth a read. Now, remember, I am a retail expert so view through that lens.

      Buy now, receive later: Is it okay to take shoppers’ payments and dispatch goods after lockdown? UPDATED

      Retailers must be incredibly confident if they are going to continue to sell (if they are a non-essential service) while in lockdown. Unfortunately, there are many businesses on a knives edge and whilst this might look appealing to generate cash flow, there are fish hooks they need to to be aware of.

      – Do you have the stock on hand?
      – Can you manage to monitor stock while you are selling it (so you don’t sell stuff they don’t have)?
      – If you don’t have the stock, when and where is it coming from?
      – Will it still come in a timely manner post-Covid?
      – Will the price possible need to change post-Covid if it is something you produce because material costs change? Will the customer pay the difference so you don’t lose out or will you wear that?
      – What happens it the customer changes their mind and wants a refund?
      – Will you be able to accommodate this (remember lots of customers circumstances will change in the coming weeks as businesses close).

      If you do continue to sell with the product/service to come later, I only hope that customers, continue to be kind if the pre-purchased items are no longer available or take a lot longer than was anticipated.

      Imagine the stress if post-Covid those customers have unreasonable demands asking for refunds and cancellations.

      You really need to consider if you cost structure is going to change as a result of Covid. Eg.if the product you are selling post-Covid might cost you more than you sold it for in-Covid?
      Not only will this tip your cash flow but also tip your state of mind.

      Some of what I have stated may not relate to your situation. There is no rule book for Covid but there is a rulebook for prudently managing businesses in tough times.

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