smallbusiness.co.uk: Helping your business think big

SMEs are rejecting discounting in the run up to Christmas and hope to maximise sales by focusing on customer service.

According to a poll by SmallBusiness.co.uk, 41 per cent of respondents say an emphasis on service will be their main strategy for exploiting the Christmas rush, with 20 per cent concentrating on internet selling and 13 per cent opting for discounting.

Ian Middleton, managing director of Argenteus Jewellery, says: ‘Service is everything. It’s important to keep the atmosphere happy and festive, the last thing you want is disgruntled consumers. Christmas can be a great time for new customers. If you get it right, they’ll be coming back next year.’

Neil Sansom, marketing director of online clothes company MandMDirect, anticipates be a tough Christmas for retailers. ‘The landscape will be very competitive. As such I expect to see a last minute surge in people shopping, as consumers hold out for the best deal. We will probably give some extra discounts, because if we didn’t customers might go elsewhere for value,’ he adds.

Of the 103 respondents, 19 per cent said their tactic would simply be to ask Santa for a good year, while 2 per cent believed it was still too early to think about.

According to business consultant Begbies Traynor, last month saw a sharp rise in retailers in serious financial distress, leading the firm to suggest that this Christmas could be worse than last year for retailers.