Impact of Seasonality on Your Dog Daycare's Finances
Last Updated: June 19, 2023 • Visit Blog Homepage
According to the American Pet Products Association (APPA), the pet care industry is estimated to be worth over $100 billion, with dog daycares and kennels accounting for a significant portion of this figure. However, the demand for these services is not constant throughout the year, and there are certain times when you can expect to experience a surge or drop in demand.
The summer months, for instance, are typically slow for many dog daycares as many people go on vacation and take their dogs with them. On the other hand, the holiday season is a busy time as many families travel, leaving their dogs in the care of professional facilities. This can result in increased demand and higher revenue, but also higher costs, such as increased staff requirements and the cost of holiday decorations and treats. You're also going to be investing more in staff during your busy months and less during your slow months. Here are a few tips to help you make the most of the changing demand for your services:
Analyze Your Historical DataReview your financial records from the past few years to identify patterns in demand and revenue. Use this information to plan your staffing and inventory levels accordingly. Print out a monthly revenue report from your last 12 months and take a look at where you have peaks and where you have valleys. Try to dig into the data a bit to figure out what was the reason for those highs and lows. More often than not, your great months are going to be when most people have vacation, and your slower months will be when most people are at home.
Offer Promotions and DiscountsDuring slow periods, consider offering promotions or discounts to encourage people to bring their dogs to your daycare. This can help maintain your revenue and build customer loyalty. Giving discounts can be a great way to encourage loyalty from your best clients. Instead of giving out financial discounts, since your clients might get upset when the price goes up again, look into giving out free services, like a free bath with daycare or a free night of boarding when you buy three, for example. These can be great ways to get some extra business when times are slow.
Plan Ahead for Holiday StaffingDuring the busy holiday season, you may need to hire additional staff to accommodate the increased demand. Plan ahead and budget for these expenses so that you are prepared when the time comes. If you know you're going to need extra employees during the summer months, make sure to put that money aside in the Spring so that you're not taken by shock when you have to start shelling out employee wages in the summer.
Maximize Your Online PresenceIn today's digital age, having a strong online presence is critical to the success of your business. Make sure your website and social media channels are up-to-date and actively promoting your services. This can help you reach new customers and increase your visibility, especially during slow periods. If your business isn't on Facebook yet, it would be a good idea to start a page and start promoting your business more often. Post pictures of dogs playing in the back yard, start a pet of the week photo contests, etc. These will help you gain some traction on the newsfeeds of potential clients that might help fill the gaps when things get slow.
Offer Additional ServicesConsider offering additional services, such as grooming or training, to help offset any drop in demand for your daycare services. This can help maintain your revenue and attract new customers. If you're a boarding facility, the easiest thing you can add is daycare. You already have the facility, you might as well start offering daycare during the day for pet parents that don't want to leave their dog at home the whole day. It's a great way to boost your income and it won't take too much work.
Manage Your CostsRegardless of the season, it is important to manage your costs and expenses effectively. This includes monitoring your inventory levels, controlling staffing costs, and reducing energy usage, among other things. Make it a point to install energy-efficient appliances in your facility, as this can save a lot of money. Each little bit will add up to help you save money during the rest of the year.
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