The Tet season presents an opportunity to boost sales, but an increase in revenue does not necessarily equate to an increase in profit. When customers tighten their spending, businesses may find themselves forced to lower prices, ramp up promotions, or sell higher volumes at thinner profit margins.
So, for the 2027 Tet season, should businesses prioritize revenue or profit? The answer depends on their specific business objectives, financial standing, and capacity to control costs.
Tet Business: Which Is More Important—Revenue or Profit?
If a business aims to expand its market share, retain customers, or increase sales volume, revenue may be the priority metric. However, if the business is facing cash flow pressure, high inventory levels, or rising costs, pursuing sales at any price can lead to diminishing returns—where selling more actually results in poorer performance.
Therefore, businesses need to define a primary objective along with corresponding financial constraints. For instance, one might set a goal to increase revenue while simultaneously ensuring a minimum profit margin. One should not set sales targets without asking: How much profit will the additional revenue generate?
Why might revenue increase while profit declines?
This situation typically stems from three main causes:
Shifts in purchasing behavior: Customers may switch to lower-priced products or only make purchases when promotions are offered. While sales volume increases, the profit margin per order decreases.
Rising sales-related costs: Expenses such as discounts, advertising, shipping, and seasonal labor can erode the profit generated.
Inefficient operations: Inaccurate demand forecasting, overstocking, or suboptimal order processing can drive up costs and lead to excess inventory following the Tet holiday. Businesses need to accurately identify the underlying causes before adjusting their plans. If purchasing power declines, they should re-examine their products.
How should KPIs be set for the Tet season?
Businesses do not need to track an excessive number of metrics. The three most important categories of KPIs (Key Performance Indicators) are:
Revenue and sales volume: Measuring sales outcomes and identifying which products and sales channels are the primary contributors.
Profit and profit margins: Assessing how much financial value is actually generated from the revenue.
Costs and inventory: Monitoring expenses related to promotions, delivery, and labor, as well as the volume of stock remaining after the peak period.
How should KPIs be set for the Tet season?
Businesses do not need to track an excessive number of metrics. The three most important categories of KPIs (Key Performance Indicators) are:
Revenue and sales volume: Measuring sales outcomes and identifying which products and sales channels are the primary contributors.
Profit and profit margins: Assessing how much financial value is actually generated from the revenue.
Costs and inventory: Monitoring expenses related to promotions, delivery, and labor, as well as the volume of stock remaining after the peak period.
What preparations are needed for the 2027 Tet season?
Before setting goals, businesses should evaluate three key areas:
Market: How much are customers still willing to spend? Which products are in genuine demand? Do not assume that purchasing power this year will be the same as last year.
Product Portfolio: Prioritize items with strong demand and appropriate profit margins. For products that require deep discounts to sell, carefully assess their viability before increasing production volume. Operational capacity: Forecast inventory, staffing, and logistics requirements to avoid unplanned costs, delivery delays, or excessive inventory levels following the Tet holiday.
Businesses should also pre-define warning thresholds—such as profit margins falling below an acceptable level or costs exceeding the budget. When these indicators emerge, timely adjustments must be made, rather than continuing to pursue revenue targets regardless of the situation.
Don’t just ask, “How much will we sell this Tet?”
For the 2027 Tet season, businesses need to keep a close eye on the market and strictly manage their operational efficiency. While increasing revenue may be a valid goal, it is only appropriate if the business fully understands the trade-offs required to achieve that outcome.
Before executing your plan, answer these three questions: What results do you aim to achieve? What level of profit are you willing to accept? And, should the market shift, what factors will prompt you to adjust your strategy? That is how businesses can not only increase their sales but also operate more efficiently.
