My business suddenly tanked

TwinsMommy

Wed, Apr 03 2024, 12:42 am

I sell something that people want/need even in leaner times so I'm not seeing a change but I know more luxury businesses are affected.

What is your business--- inventory based or a service? Do your clients re-order? Like is it a product needed again and again or is it a one time service and you don't generally have repeat clients? If you DO have repeat clients, incentivize them to spend now and to refer a friend....?

amother

Wed, Apr 03 2024, 10:22 am

TwinsMommy wrote:

I’m in the simcha industry
It’s a service business

But looking around in the tri state area, I don’t see ppl skimping on their weddings and simchos. Weddings are still extremely lavish

I won’t say exactly what I do so as not to give away who I am
My competition don’t seem to be struggling but at same time I doubt they think I am struggling

It’s been rlly tough

amother

Calendula

Wed, Apr 03 2024, 11:07 am

I am so sorry for you. It's really tough, I've been there. Business can really have its ups and downs. I don't know what your business is so I can't be specific, but I would do "gentle" advertising to a targeted audience. So for example if you have a current client tell them that you are running a promotion and if they refer someone else each get certain $ or % discount. whichever sounds better for your business. Also I would reach out to old clients who were happy (it's hard I know) and tell them something similar. Once you have a client base you have to dind ways of getting them back or incentivizing them to send others.

You can also team up with ppl who run a similar business so for example if you sell personalized cookies, reach out to party planners and tell them to send clients to you and you will give a special discount.

amother

Freesia

Wed, Apr 03 2024, 11:30 am

I am also in the simcha industry
My earnings have decreased by $10,000 the last 2 months
I don't think it's that people are suddenly cutting back
I think people have poor loyalty and will order online not locally

TwinsMommy

Wed, Apr 03 2024, 1:31 pm

Is it Jewish specific like a band with Simcha music or something where you can advertise outside the frum community like photography or party planning? Think outside the frum box. My best clients aren't Jewish.

amother

DarkGreen

Wed, Apr 03 2024, 2:26 pm

Can you think about what might have changed?
Is it a style that changed, that your business didn't move along with?
Is your price point too high or low?
Did you ever get feedback from costumers?

amother

Iris

Wed, Apr 03 2024, 3:43 pm

amother DarkGreen wrote:

Can you think about what might have changed?
Is it a style that changed, that your business didn't move along with?
Is your price point too high or low?
Did you ever get feedback from costumers?

These are all good questions.
Reminds me of a current situation IRL. My friend is making a Simcha. She reached out to a party planner and didn't get quick responses. The planner, after 2 weeks, finally gave her a quote and told her that she won't be around when the event is but that her presence didn't matter anyway. My friend was, reasonably, concerned and asked who's making sure the party is set up correctly. No real response. Needless to say, this planner will not be making any money off my friend. I wonder if she's considering all her pesach costs and questioning why her income is going down as expenses increase... So my point to you is what are you doing differently? If nothing, try reaching out to past clients to wish them a easy pesach and ask if they were satisfied with your services. It's a good way to pound your business network and also remind people that you're still there.

amother

Alyssum

Wed, Apr 03 2024, 4:06 pm

My husband is in the Simcha industry too.

Firstly there are always seasons, in his particular niche January and February are the leanest months every year.

Secondly the economy is hitting a lot of middle class people now. So you still see huge high end events but it's mostly wealthier people hosting those. If your target client base into more has been slightly balebatish but not really rich, then it could be that your market essentially lost half is potential customers.

Whatever the reason, I bench you that it should turn around quickly! You may benefit from targeted advertising and promotional pricing to get your name out there again.

amother

Lotus

Wed, Apr 03 2024, 4:15 pm

Many things in the frum world are trend based and move along quickly.

I know someone who went into the meat board line and was SWAMPED for about a year. Now it’s mostly out of style. Same for cured tuna Etc.

I also have a relative that was doing party planning and was raking it in for about 5 years. Now he’s at 0. People aren’t throwing as many parties as they were the last few years. Party culture has died down a little. Money and overall Oct 7 plays a role.

amother

Thu, Apr 04 2024, 12:10 am

I’m mostly catered toward weddings, bar mitzvah, vorts - the like

People aren’t slowing down on tht.
And even the balabetish families, which is most my clientele, are still making somewhat fancier simchos.

I’ve tried many times to think with my partner what could possibly have suddenly gone wrong and always turn up blank.
I honestly just have to hold on to my emunah that this is what Hashem decided on RH business will profit this year. And maybe next year will be different

DrMom

Thu, Apr 04 2024, 12:26 am

amother OP wrote:

Do you know who people are going to for this service instead of you? Assuming there is still a market for this service, this is probably the most important piece of information you need to understand why your business is drying up.

Do you know if a competitor has dropped prices?

If you cannot complete on price, can you offer something in your service to make you stand out to justify the extra cost?

Can you pivot to an adjacent product, or move up the value chain and offer your original product + an added service?

amother

Cantaloupe

Thu, Apr 04 2024, 12:52 am

It's not always price based, especially for that crowd. I used to work for a company in the simcha business and we had one main competition in our large city. They were more in demand with certain types of clientele because they were more expensive and they treated their clients horribly. For some reason it made people feel like they were more exclusive and special. I literally had clients tell me, you're too nice, if you would be nasty like her you would have more business. Or, why are you that much cheaper than her, what's wrong with your products? Mind you, we also weren't cheap, but we were cheaper, so we were considered inferior.

amother

Cantaloupe

Thu, Apr 04 2024, 12:54 am

amother Alyssum wrote:

In the business I worked for January and February were also always quieter. Op, hopefully this is just the typical January, February simcha slump and things will improve soon.

mandr

Thu, Apr 04 2024, 1:36 am

Op I’m with you! The same is happening with my business, also a service but not in the simcha line. The last six months’ sales were steadily dropping. There’s a recession going on and it’s affecting all my clients so it trickles down to me as well.