Why are corporations Q4 revenue usually worse than Q3?

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Rhyme or reason for this trend?

One would think the public has more spending power or willing to spend due to the holidays (Q4).

Or due to more employees on vacation leaves etc. the rate of production slows down/not enough service staff?

In: Economics

10 Answers

Anonymous 0 Comments

As for how the holiday spending affects revenue, only certain types of companies see a big boost. If you don’t sell things people see as gifts or holiday decor/food, they are less likely to buy it because their money is going to buying gifts and other holiday stuff.

(sidenote: this is why you see so many products that have nothing to do with the holidays and make crappy gifts marketed as holiday stuff… if they cant convince people to buy it, they will have less profit during that time)

But even those companies might not have the bump you would think, because lots of people buy early and spread their purchases out, either so they don’t forget X asked for Y or because they cant afford to buy it all in a short period.

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