How to get a leg up on the competition and increase your odds of winning.
Every year Shopify has a competition where the top selling new stores win valuable time with some big name mentors. This year’s contest is the biggest yet: 5 winners will be flown by private jet to Richard Branson’s private retreat, Necker Island, to be mentored by Richard Branson, Seth Godin, Tim Ferriss, Daymond John, and Marie Forleo.
If you are thinking of entering the contest here are some “hacks” to help get a leg up on the competition and increase your odds of winning.
Concentrate your Sales into your Top Two Months
The Shopify Build-a-Business competition takes your top 2 months of sales to determine the winner. If you can manipulate your sales in such as way to concentrate them into a 2 month window you significantly increase your odds of winning. With the build-a-business contest, it doesn’t matter how many bad months you have as long as you have at least two dynamite months.
You need to be very strategic when picking the two months you want to put your focus on. Pick the two months where you expect your natural organic sales volume to be peaking.
In 2011 Coffee Joulies released an innovative and unique product that sold out almost immediately. As they were waiting for new stock to arrive they continued to take “pre-orders”. Once their product came back in stock, all those accumulated pre-orders were triggered into a single month giving them a huge single month sales volume, much higher than any other competing store, and sealing their win.
If you have a product that is unique and in demand, you can “fake” an out of stock situation, collect all the unfulfilled demand, and then bring the item back into stock at a strategic time and trigger all those sales in a single month.
Let’s say that you pick December to be one of your key months. You will want to offer a promotion in November that will encourage customers to delay their purchases to December 1st, and then another promotion at the end of December to encourage customers to make a purchase before the end of the month.
Delay Purchases to the Following Month
Advertise a sale starting on the 1st of the next month — During the last few days of November start advertising that “Starting Dec 1st – All items on sale for 1 day only!”.
Encourage Purchases Before End of Month
An example of a promotion encouraging customers to buy before the end of the month would be something along the lines of a “Free Shipping until the end of the month”.
Target Special Dates
If there are any special dates in your target month such as Mother’s Day, Father’s Day, Black Friday, Boxing Day, etc… Make sure to have strong promotions running around those dates to further boost your sales for the month.
The Build a Business competition usually runs from September to March. If you are selling a summer seasonal product such as Gas Grills or BBQs, then you are probably out of luck. You will be hitting your sales peaks long after the contest is over (and before the next one begins).
On the other hand if you are selling a Winter seasonal product then you are in good shape as your sales will be peaking at the right time. In 2013 CanadianIcons.ca won the 3rd annual competition due in big part to the nature of one of their products: The Canada Goose Arctic Parka (known as “The warmest jacket on earth”). While most merchants hit their peak with the Christmas rush, Canadian Icons continued to peak through January and February due to a cold Canadian winter. Those strong January and February months were key in their win.
Sacrifice Profits for Sales
Know your Profit Margins
and Leverage Google AdWords
You can use Google AdWords to “buy” extra sales. if you are willing to spend your entire profit margin to get a sale, then you should be able to outbid other advertisers and get a majority of the sales. This isn’t a great ongoing option to keep your business viable, but something to consider if you are trying to boost sales in a couple specific months. In particular, this works well if:
- You are selling a brand or product that has a pre-existing high search volume/demand on Google and;
- Your product has high margins or high lifetime customer value and;
- You have unlimited stock of this item.
Sacrificing your profits for higher sales volume may not be the best strategy if you are trying to run a profitable business. However if you think it’s the difference between making it to Necker Island or not, then it might be worth it!
Optimize your Order Size
Split orders into $1000 chunks
This year’s Build-a-Business competition will only count the first $1000 of any order. If you think your average order size may be above the $1000 mark consider encouraging customers to split purchases into multiple orders. This way their entire purchase counts towards your Build-a-Business “score” instead of just the first $1000.