How To Deal With A Massive (And Unexpected) Surge In Sales

For most of the time, your sales hum along as normal, moving around very little. But sometimes, massive spikes can come your way that completely takes you by surprise. And when that happens, it can be hard to take advantage of the windfall. 

In this post, we take a look at some of the ways small businesses can deal with massive surges in sales and meet demand. 

Use Data Analysis

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It can often seem like sales surges come out of nowhere. But if you have the right data in front of you, you can usually predict them in advance. 

Take demand planning, for instance. Most companies just keep a spreadsheet in their backroom telling them how much stock they sold last year, and how much they need to order this time around, based on seasonal trends. 

This method of planning is okay most of the time. But it doesn’t work when things suddenly change – as they did during the coronavirus pandemic. 

Today, though, you can now get demand planning solutions that integrate with multiple data streams across the supply chain in real-time. Some even use machine learning. This way, you can better predict what’s coming down the pike and avoid nasty surprises. 

Outsource Excess Capacity

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Here’s another pro tip: outsource your requirement for spare capacity. 

You never know when demand is going to shoot through the roof. But, at the same time, it is expensive to maintain spare capacity when you don’t need it. 

The trick here is to outsource your excess needs to third-party companies and then use them as and when you require them. 

Take vehicles, for instance. Most of the time, you can meet all your deliveries just using your in-house fleet. But sometimes, you might need to call on trucks from providers, such as Flex Fleet. Critically – you only pay for the capacity that you need, so you don’t wind up with mountains of idle equipment, waiting for demand spikes that may never arrive. 

Create A Surge Plan

Surges in demand will probably happen in the lifetime of your business. So it’s a good idea to create a plan spelling out the responsibilities of every person in your organisation. 

A surge plan might include things like developing relationships with secondary suppliers or having a pool of people standing by who can come and work for you when things start getting a little out of hand. 

You’ll also want to think about how long surges are likely to last. Demand usually ebbs and flows according to circumstances. So think practically about what might happen. If demand remains high for a long time, it could mean changing your underlying business model, whereas if it is fleeting, then you can probably meet it just using emergency measures. 

Focus On Cross-Selling

Lastly, surging demand is a great opportunity to focus your efforts on cross-selling and upselling. Ideally, you want to preserve items you have in stock by encouraging customers to buy more profitable and higher-margin lines. This way, you can reduce the likelihood you’ll have to turn customers away.