Memorial Day is just around the corner and serves as the peak summer season kick-off. You’ve probably started your peak season hiring and training, but have you prepared financially?
Yeah! You are still reading and I promise that you’ll be grateful in September when you can have an extra $10 grand in the bank. I want you to spend one hour doing financial prep steps now that will maximize your financial opportunities during the peak summer season.
Step 1: Rate Check
If it has been over one year since you have raised rates for your business you need to select one service and implement a rate change. If you provide lodging services start there so you earn more revenue when you are full. This is crucial if you expect to have a wait list during the summer season, now is the time to increase rates!
How many pet nights do you expect over the summer season? Would an extra $4,000 in September make you happy? There are 100 peak boarding days during the season and if you have capacity for 50 pets and operate at 80% occupancy for the season that totals 4,000 pet nights. Raise your lodging rates $1 now and you can earn an extra $4,000 for the same amount of work.
Step 2: Make it Fun
Summer is a time for fun and for human kids this often means a trip to camp. You can replicate this fun for the four-legged kids and offer a special summer camp for your dogs that attend daycare.
Invite your regulars to enroll in summer camp (charge an extra fee) and offer a special activity for a period of 4-6 weeks. Keep the activities simple for your team and low cost for your business. Offer camp activities on slower mid-week days and consider these ideas:
- Easy dog tricks like shake, roll over or high five
- Mastering agility equipment like tunnels, jumps or high bar
- Introduce basic Fit Paws equipment for improved doggy fitness
- Paw art project
- Water park party (kiddie pool & sprinklers)
- BBQ or Frozen treat specials
Create a $99 camp package and book 35 dogs for the program and you can earn $3,500 in extra revenue. Be sure your staff time and cost per dog is 50% or less than the $99 fee charged per dog or increase the camp fee.
You can also create special summer fun activity packages for your pets that lodge with you. Create three different package options and be sure to give them fun names. Offer the package options to every client that makes a summer reservation and you’ll boost your summer revenue.
Lodging activity packages can have a big revenue impact and is something you can offer even if your lodging is all-inclusive. A $15 per night activity package sold on 25% of your pet nights can earn an extra $15,000 in revenue! Again, make sure the staff cost to provide package services is 50% or less than your rate.
Also be sure to take a lot of photos and post in social media the fun your Summer Campers and Lodgers are having at your business. The summer fun extra revenue does double duty as marketing as your business stands out as the fun place for pets to hang out!
Step 3: Cash Planning
This may be the most important step so don’t skip it. Decide now what you will do with the extra $10,000 cash earned during the peak summer season. The right decision is personal to you and your business, but following are some options to consider.
Save a portion to use if you have cash shortages during the fall before the Thanksgiving holiday peak week. Review your budget or prior year numbers to determine how much cash is needed and set that aside in savings.
Pay yourself a bonus! Yes, put yourself first and reward your planning and hard work during the summer with a bonus.
Reduce or pay-off credit card balances and other short-term debt in your business. Avoid future interest expense and start a new habit of using peak revenues to reduce debt balances.
Invest in staff training, attending a fall pet industry seminar or new equipment for your business that will increase future revenues. Once you’ve done the first three items prioritize options to invest in yourself, your team and future business revenues.
It’s smart business to spend time planning and maximizing your peak season revenue. Be sure to keep it fun for your guests and your team. Your reward will be the extra cash in the bank account in September.
Share your plans on maximizing summer fun and revenues in the comments. We would love to hear from you!