Holidays promote capitalism and the sale of goods and services. A majority of Holidays are centered around ‘gift giving.’ Because of this, a lot of retailers typically offer some of the best deals and promos during them. Below, we will talk about some of the ways the holidays promote sales of products.
How Holidays Promote Sales:
- People Have Time Off.
One of the main reasons a lot of retailers look to offer some of their best deals during the holidays has to do with the fact that people generally have time off from work during them. Because people have time off during the holidays, it is generally something that they look to take advantage of. Meaning, they are much more likely to have time to go out and shop. This alone makes it much more likely that people are going to buy things.
Another big way that holidays promote sales of products is through direct and increased competition. Retailers are constantly engaged in competition for the customer’s business. As a result, they are incentivized to offer better deals when their competition is doing so. This leads to better pricing during the holidays which in turn results in better sales numbers.
- Gift Giving.
The entire practice of gift giving leads people to buy more during the holidays. While people generally purchase things for themselves, a lot of people take much more pleasure in buying things for others as a gift. Therefore, it encourages people to go out and buy things which results in many more sales for businesses during these times. Because more people are interested in buying things for others during holidays, it is a time when the sales skyrocket for many businesses as a whole.
Another big reason the holidays promote sales of products has to do with the fact that a majority of people are generally spending the holidays traveling. Not only do people tend to purchase more things while they are traveling, but they are also going to be meeting up with friends and family that they might not see very often. Therefore, they are going to be much more willing and able to spend more money on experiences, products, and services during these times.
- Holiday Bonuses.
Another reason a lot of people are generally more prone to buy more products and services during the holidays has to do with the fact that a lot of employers tend to give out holiday bonuses. The employers that give out holiday bonuses offer employees much more discretionary income to work with that they are able to purchase things with.
- Gift Card Giving.
A lot of people tend to give gift cards as a present which encourages spending. Because a gift card can only be used at a specific retailer, it is going to encourage the sale of their products. This is why gift cards are such a good option for retailers because you are making a sale without forgoing the product for some time. Gift cards really encourage spending because it doesn’t feel as if you are necessarily spending money on your own so a lot of people will be more willing and able to purchase products that would normally be out of their respective price range if they were paying with another method of payment.
Overall, there are plenty of reasons sales tend to go up significantly during the holidays. Not only do people have time off which allows them to go out and spend money, but they are encouraged to give gifts to their friends and family during these times.