Genius Idea for Seasonal Businesses
Summary
- I've noticed that businesses struggle with seasonal demand, like how fur coat sellers see a drop in summer.
- To tackle this issue, fur sellers came up with the concept of offering coat storage and conditioning services in the off-season.
- They effectively communicated the value of this service to customers, likening it to insuring a luxury car, which customers readily accepted.
- By providing repairs, sewing, and fur conditioning, they could extend the life of the coats significantly.
- This strategy effectively turned a traditional product into a service, creating an 'insurance product' that generates revenue year-round.
- I learned that it's crucial to think beyond the core product and find creative ways to serve customers and maintain cash flow all year.
- It's about understanding your customer's needs and offering them a no-brainer solution that aligns with the value of what they've already purchased.
Video
How To Take Action
- I suggest finding ways to give your product extra value during slow times. Like those fur coat sellers, think about what services can be added that make sense for your business.
- Make your services feel necessary, just like insuring a fancy car. Tell customers how it helps them in the long run, and they'll see it's a smart choice.
- For example, if you sell seasonal stuff, offer keeping and fixing up services for the off-season. This can keep money coming in all year.
- To start, list the problems your customers might have when they're not buying your main product. Then, come up with services that can fix those problems.
- Always show your customers how these added services help them get more out of what they already bought from you.
- Keep these solutions simple and budget-friendly, so even a small business can do them without spending a lot of time or money.
Quotes by Alex Hormozi
"They realized that in the summer they never had any demand cuz people aren't trying to buy fur coats in the summer"
– Alex Hormozi
"What can we sell to people that's still on brand for fur coats during the summer"
– Alex Hormozi
"We'll store and condition the coats for them"
– Alex Hormozi
"Make sure during the summer when you're not using the coat you bring it back here"
– Alex Hormozi
"We can make it last two three five times longer"
– Alex Hormozi
Full Transcript
they realized that in the summer they never had any demand cuz people aren't trying to buy fur coats in the summer and they're like huh what can we sell to people that's still on brand for fur coats during the summer and so they came up with a genius idea we'll store and condition the coats for them as they sold every single customer a coat they said hey every year make sure during the summer when you're not using the coat you bring it back here we can repair any damages we can sew things up we can condition the fur and we can make it last two three five times longer right if you're going to buy a $50,000 car you'd pay 100 bucks a month for insurance to insure the car of course right it's the same thing here overnight he created what I would consider an insurance product
