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As we sell software globally we are often viewed as a global barometer of the software development market by our partners. Many of you contact me during the year to ask why our sales are so strong in Japan in March? Or why are our sales to US Govt customers so large in Aug & Sep each year and then low in October? Others ask why sales in Europe have slowed so much in August, or dipped in the US in July?
The answers are usually varied based on the time of year, the market conditions and the countries or regions involved - so here is some background information for you to consider when you are looking at the shape of your sales and where they are coming from!
First - think about business days in the month - in some months we have 10 weekend days and 20 business days - in other months we have 8 weekend days and 22 or 23 business days. If you are selling to businesses, not to consumers, sales tend to happen on weekdays or business days not weekends. You may be wondering why your sales are up 5%, 10% or 15% in one month compared to other months and the reason may be very straightforward - it may be down to the number of business days in that month. One way to smooth this out is to compare quarters or 3 month periods, as this tends to smooth out the effect.
Second - think about holidays in the month - these can vary by country and region, so you will see different effects in different parts of the world. In the US the July 4th holiday and the Thanksgiving holiday in November will mean a lot of US businesses are shut and customers will be away. These people may also take additional holidays themselves either side of these major holidays causing the whole week to slow down sales wise. This may be obvious to you if you are sat in the USA - but if you are in Europe or Asia/Pac you may not realise that these holidays are impacting your sales.
The same is true in other parts of the world, but at different times - the Japanese have a major holiday in Golden Week each year which falls in early May each year. In Europe most people tend to take at least 2 weeks summer holiday or vacation in August and in Nordic countries that could be 4 weeks. These holidays will have a major impact on your sales patterns - with weaker sales in Japan in May, weaker sales in Europe in August, weaker sales in North America in July etc.
Third - think about buying patterns and understand how your corporate customers may have their purchasing habits shaped by their budget years and periods. In Japan companies run their budget years to the end of March - so usually the sales in Japan in March are larger than normal, as people try and spend their budget before the Financial Year End. Most Japanese companies report their results every 6 months or in half-years, so you will also see a rise in sales in Japan in September too.
US customers often buy more heavily as they approach a quarter end - so historically you may see stronger sales in Mar, Jun, Sep & Dec from the US each year. Not all US customers follow the same patterns though - US Govt Customers will follow their own budget year and hence spend accordingly. A typical US Govt purchaser has a budget that runs up to the end of September each year - this results in them spending more money in August & September to make sure they use their budget in full and don't forget to buy the products they need. As soon as October comes - things tend to go quiet as they await their new budget and new projects for the year.
Seasonality also comes into sales results - as people in Europe return to work in September they tend to pick up new projects, re-start their daily tasks and so quote requests rise and orders start to flow. This can take a few weeks to get up and running - so early September can be quiet, but late September and October can be very busy! You see similar patterns to this in Jan and Feb each year - as people return to work and get their new projects and priorities sorted out.
A current example - this week many German and UK customers have their school children at home on a half-term break - this means some of them take time off work too and sales may slow in these countries as a result. Plus 31st Oct and 1st Nov are public holidays in Germany... so sales will be lower as a result from that part of the world.
If you ever want to discuss your sales patterns or are trying to understand what is underlying the pattern you are seeing - feel free to get in touch with us to ask why - there is usually a straightforward answer.
To discuss this further, please email: harryk@componentsource.com |
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| Do you want to boost your sales? Here is an immediate quick fix to falling sales! Update your software and launch a new version... our customers always like to see new features and functionality - so a new release always boosts your sales. The opposite is also true - if you fail to update your software product customers start to think you are not focused on it and not interested in adding to the functionality. They have no need to buy an upgrade or a renewal - they may even decide to stop buying support & maintenance. Worse still - they may go and evaluate new alternative products and stop using your software entirely. To avoid this and to boost your sales - regularly update your software!
To discuss this topic further email: harryk@componentsource.com |
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Did you know that ComponentSource was 16 years old in October?
Yes - we were founded in October 1995 and sold our first product license to a customer in February 1996 in Europe. In those days the products that we sold were encrypted onto a CD and you called us to buy the product and get an unlock key to decrypt the product off the CD onto your system for installation. In 1997/8 we launched a full eCommerce service on our Web site and you could download the products you purchased immediately on-line and then install them. |
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Market News
We had the second biggest sales month in our company history in Sep 2011!
Who says it is all gloom and doom in the global economy? Maybe our customers have worked out that software tools and software components built by specialists can help you save, time, money and improve productivity with new apps!
To see the latest new products we have to offer look here - every day:
More info: ComponentSource News
ComponentSource US News
US Govt Sales! You can grow your sales to US Govt customers by using ComponentSource to supply your US Govt customers. We do this through our GSA Schedule agreement and this makes it easier for US Govt customers to buy your software as we are a pre-approved supplier. To take part in the GSA sales opportunity - you just need to sign a Letter of Supply (LoS) for us and we will add your products to the agreement and to the various approved product price lists, Web sites and eMalls that US Govt buyers use to purchase your products. To discuss this further - please contact Chris Brooke: chrisb@componentsource.com
More info: GSA Schedule
European, Middle East & Africa News
Are you thinking about how to grow your sales in EMEA in 2012? We have lots of ways to help you reach new customers in Europe. With pricing in: EUR, GBP, DKK, SEK, NOK, CHF & ZAR and local bank accounts for customers to pay into we are well set up to handle complex international purchasing in Europe. Plus we have some great marketing vehicles that you can use in: English, French, German, Italian and Spanish. To discuss this further, please contact Harry Kelly: harryk@componentsource.com
More info: Software Product Marketing Campaigns
Asia/Pac News
What are your plans to market and sell to customers in PR China, Hong Kong or Taiwan? We can help you reach this new expanding market with our Mandarin and Cantonese speaking account managers, our Chinese Web site and our Chinese Email Newsletters. To discuss this further please email Scott Sata: scotts@componentsource.co.jp
More info: ComponentSource (Simplified Chinese)
More info: ComponentSource (Traditional Chinese) |
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