When it comes to making tough decisions about your business, it can be hard to know what to do. If you’re feeling like you need to make changes to your product line, especially whether or not to remove products in order to save money, don’t worry – you’re not alone. Here are a few tips on how to decide if that’s the right step for you.
The most important thing to remember is that removing products from your line should always be a last resort. If there are ways you can reduce costs without eliminating any items, that’s always the preferable option. However, if you find yourself in a situation where you need to make cuts, here are a few things to consider.
Assess your inventory.
Take a look at what you currently have in stock and see which items are selling the best. You may want to consider discontinuing products that aren’t moving over the past year to two years – or even within a shorter time frame because obviously, they have not made you a profit sitting on the shelves.
Evaluate your production costs.
One of the first things you’ll want to consider is whether the product is profitable. If it’s not making money, then there’s no reason to keep it in your lineup. Compare the cost of producing each item with how much revenue it brings in – if the numbers don’t add up, it might be time to let that product go, or search for more cost-effect ways to produce the item.
Another important factor in evaluating your product’s costs is your pricing. Do your competitors have a comparable product and is it selling? How much is it selling for? You may need to adjust your asking price or you may find that your version of the product is outdated.
Consider your customer base.
It’s always important to think about who your customer is and what they want. If you’re getting feedback that certain products aren’t resonating with customers or that you have received complaints, it might be time to consider eliminating them.
Another thing to consider is that if you have a product or two that hasn’t moved in a while, yet you think that your customers really need it, want it, but aren’t sure why they haven’t bought it, you could add it to another item or empty old stock, using that item as a bonus with purchase. If there seems to be an increase in sales for the bundle, you might have a reason to continue producing the time that has been stagnant. However, it’s very likely that making several thousands of these particular products again may land you back where you started – many unsold products on the shelves.
Making tough choices about your business can be difficult, but if done thoughtfully, it can ultimately help you save money, thus increasing your revenue and growing your company.