Happy 4th of July!
If you worked for me at Toy House, today would be a paid holiday. Same with New Year’s Day, Easter, Memorial Day, Labor Day, Thanksgiving, and Christmas. We only had two unpaid days we were closed—the Sundays before Memorial and Labor Day. Nine closed days, seven paid holidays.
Yeah, I lost business being closed those days.
Yeah I gained business being closed those days.
Yeah, I increased payroll being closed those days.
Yeah, I decreased payroll being closed those days.
First, understand that my store was in a downtown of a city surrounded by over one hundred lakes. No one was downtown. No one was going downtown on Memorial Day, 4th of July or Labor Day. If you are near the beach or amusement park, or river where the fireworks are going off, you might be better off being open.
The other holidays I lost business, especially Thanksgiving and New Years—days that many other retailers are open. At the same time, because I made a big deal out of giving my staff paid time off to be with their families, I actually gained loyalty from my customers who shared those values. Giving up business to be good to my staff made my brand stronger and helped me build trust among my customers. They realized our store was not driven only by the almighty dollar.
The key was letting my customers know why I was closed and what I was doing.
As for payroll, sure paid holidays are payroll with no income. I could be closed without offering pay. Then again, the biggest expense in payroll long-term is employee turnover. Take care of your staff and they’ll take care of you. Plus, it reinforced my values of putting my staff’s needs near the top of the list. My customers saw that and appreciated it. My staff truly appreciated it. In the long run it was a win-win all around.
You don’t have to be closed for holidays. In fact, you might be in a situation where you can’t be closed. I’m not telling you to be closed, either. I’m telling you to be true to your values and make sure your customers know exactly what you value. You’ll attract more customers that share those values, which will more than make up for any sales you might sacrifice or expenses you might add on in the process.
PS If you’re gonna be open on those holidays, make it special for both your staff and your customers. They both are in your store instead of out celebrating. Go all out and celebrate in style. If I was open today, I’d be grilling hot dogs out front and singing patriotic songs.