Christmas: A time for selling, extra hiring
It’s the season to be merry and make money, too.
For many small entrepreneurs, the holiday season usually brings brisk business and a spike in revenues.
As early as August or September, entrepreneurs focus on making sales and making sure they have inventory of the right kind, quality and quantity to optimize sales.
Higher production means stocking up on labor supply. Back-up capital is, of course, required to get the supplies and hire the extra help needed to cope with increased business.
Thinking up incentives to entice customers to their doors is another challenge entrepreneurs have to face during the season.
THE BISTRO Group COO Jean Paul Manuud
Chito and Aida Madrono of 13 PM Enterprises, maker of Eureka board games and educational toys, confirm the last quarter of the year is truly peak season for them.
As early as October, various department and book stores carrying their brand begin to place their orders.
“Believe it or not,” Aida said, “the demand extends up to January, since young people have extra spending money from all the Christmas ‘loot’ they receive.”
Cecil Pagdanganan of Golden Sun Flowers and Décor Shop in Pasig City, for her part, estimated that revenues surge by about 300 percent from October through December.
Much of the extra income comes from the manufacture and sale of fabric poinsettias, Christmas balls, crystals, sequins and lanterns.
Her shop accepts holiday-decorating projects from residential villages like Forbes Park and Valle Verde and institutional clients like United Coconut Planters Bank.
Cecil is so upbeat about prospects this year that she expanded her store to the unit next door to accommodate displays of Christmas trees, Nativity dioramas and giant parols.
It is also peak season for Cagayan-de-Oro based Vivian Libao, owner of Puyo Handicrafts, who recalled that she and her weavers and sewers began preparing for the season’s inventory in October.
Not all entrepreneurs, however, get to enjoy the holiday windfall.
One exception is Ian Carandang of Sebastian’s Ice Cream, recognized as the first artisanal ice cream in the country.
He explained that Christmas is not a busy time for him because ice cream, unlike cakes and cookies, does not travel well.
For Mity de la Pena of Snack Shack, a fast-rising burger joint in Metro Manila, Christmas season is always an unstable month.
Business can be slow since students, who dominate the customer demographic, are preoccupied with culminating activities.
How do entrepreneurs cope with rising sales?
The Madronos avoid hiring additional help by asking their workers to work overtime.
It makes sense, Aida said.
“If we get in new workers, it will take time to train them before they become fully productive. Our core people are experienced workers who can be counted on to turn in high output; never mind the premium we pay for overtime,” she added.
The biggest challenge is coordinating production and delivery of outputs from sub-contractors.
“We job out our plastic parts, injection, machining, and silkscreening. We also have home workers who clean, polish, and buff parts. It can be a nightmare synchronizing the diverse processes into a smooth work flow,” she said.
For her part, Cecil has trained workers who are ready to join her when she bags big projects like a wedding or a debut.
Christmas is an opportunity to give these stand-by staff members full-time work for at least a few months.
Capital outlay, however, can be problem for Cecil.
Her “50-percent-downpayment policy” pays for most of the material costs. When she gets cash-strapped, she goes to a moneylender for fast, no-hassle credit.
Like Cecil, Vivian has a back-up labor force that works with Puyo Handicrafts on a part-time, on-call basis.
Both Eureka products and Puyo handicrafts see little need for promotion.
The toy company is secure in its position in its market niche, while the craft firm has had buyers looking for its products, especially the less expensive items.
Golden Sun Flowers and Decors uses Facebook and Sulit.com to maximize its exposure.
Most effective for her by far, however, is word of mouth.
Sebastian’s, meanwhile, introduces a Christmas-themed ice cream flavor every holiday season.
This year, in addition to the queso de bola, puto bumbong and bibingka espesyal mainstays, Ian released Food for the Gods and dark chocolate peppermint specials.
As these entrepreneurs keep up with heightened demand, they also make sure to take care of their people.
All the entrepreneurs hold Christmas parties and give 13th month pay and other incentives to their people. Most distribute Noche Buena grocery bags.
Puyo and Snack Shack take advantage of the parties to recognize exceptional employees.
At 13 PM, employees get more financial perks when the business is especially good.
As Vivian says, “Christmas is a time for giving back,” which Mity echoes with: “It’s a special time for all of us so we make sure our people feel the holidays in spirit and practice.”
(For more entrepreneurial stories, visit www.serdef.org.)
