Off Season Selling

Many companies that sell seasonal things have seasonal lows. Things like lawn equipment which doesn't sell good in winter obviously. To boost sales companies use sales promotions. By putting things on sale or offering awesome deals during these low seasons companies can level off production and sales to be more stable all year.

Do they still make money during these times or do they have spillover from more productive seasons and this is just to keep operations level. If they don't have spillover and they are still making money during off seasons why don't they do these sales promotions during the most productive times of year and up sales there when demand is high. Could this overall make them more profitable yearly.

I think the main reason companies try to level operations is because employment, they want to keep employees working year around and not have to hire seasonal workers or pay overtime during peak seasons. But if profits for the entire year are higher by running more sales promotions during peak seasons this could potentially allow a company to do some unique things. Like raising employees yearly incomes and letting them have most the winter off in the case of lawn equipment. Then during peak seasons working employees with no likeliness of slow operations. Or if sales promotions create huge demand in the peak seasons maybe work employees year around to prepare for those seasons. These all entail some risky hard economic analysis but its something to think about.

Here is some info. about increasing sales in off seasons

http://www.entrepreneurchic.com/how-to-increase-your-sales-in-slow-seasons/