Short YouTube clip (Mike Andes) arguing that seasonal businesses often fail because they run advertising during the off-season when demand is low, which raises customer acquisition cost (CAC). He advises shifting marketing spend to periods when CAC is lowest and demand is highest to maximize budget efficiency.
Seasonal businesses fail because they spend money on ads at the wrong time. And this just frustrates me so much. When you spend a whole bunch of money on advertising during the off season to stay busy at a time when you have unproductive labor and the guys aren't moving quickly, you're just losing money hand over fist because your customer acquisition cost is inverse of your demand. The goal is to spend as much of your marketing budget as possible. When customer acquisition cost is at its lowest point and demand is at its highest point. That's the goal.
