Seasonal Production and Storage: Planning for Off-Season Demand

Jam makers surge in summer harvest. Holiday bakers peak in November-December. Off-season means no production and no income. But with strategic storage and planning, you can produce year-round and smooth your cash flow. This guide teaches you seasonal strategy.

The Seasonality Challenge

Peak season revenue: Product in high demand. Easy to sell. Higher prices justified. Example: jam makers in August-September

Off-season gap: 4-6 months with no production. No income unless you had inventory. Cash flow suffers.

Storage cost: Refrigeration, facility rental, insurance. Can cost $300-$1,500/month depending on volume and facility

Strategy: Over-produce during peak season and store. Sell from inventory during off-season. ROI on storage costs vs. year-round income is usually positive.

Storage Strategy Comparison

No Storage (Seasonal Only)

Pros: No storage costs. No inventory carrying costs.

Cons: 6-month income gap. Constant cash flow stress.

Home Freezer/Pantry Storage

Cost: $0-$50/month (incremental electricity).

Capacity: Limited. 100-200 units max depending on product.

Best for: Small-scale makers who can manage at home

Commercial Storage Facility

Cost: $300-$1,500/month depending on climate control and size.

Capacity: 1,000+ units. Professional environment.

Best for: Production at scale where storage cost ROI is clear

Storage ROI Example (Jam Maker)

Peak season (3 months): Make 1,200 jars at $0.50 profit each = $600 profit

Off-season inventory sales: Sell 800 jars from storage at same profit = $400 additional

Storage cost: $600/year (3 months × $200/month)

ROI: $400 off-season profit - $600 storage = -$200 net

BUT: You now have year-round income instead of 6-month gap. Better for cash flow and employee retention.

Key Takeaways

✓ Peak season: Over-produce 30-50% above typical monthly sales

✓ Home storage feasible for 100-200 units; use commercial for larger volumes

✓ Storage cost: $0-$50/month (home) or $300-$1,500/month (commercial)

✓ Calculate off-season profit to justify storage investment

✓ Year-round inventory smooths cash flow and enables consistent income

Plan Seasonality. Build Year-Round Revenue.

TrueCraft tracks seasonal demand and storage inventory.

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