How often have you seen a company add a sku to an already overflowing product portfolio in response to customer demand? Then, all of a sudden, the company has so many skus (and so few sales per sku) that no one can keep up and profitability plummets.
Chances are, you’ve seen it more than a time or two before. So, what do you do?
A wholesaler I know once said, “Enough is enough! We need to streamline and find out what customers really need and want, and how we can deliver on that.” I couldn’t agree more.
The steps they took were pragmatic and bold. Take a cue from them and try these in your particular situation:
- Analyze your sales and profitability at the sku level by customer.
- Identify which products or product groups are the most profitable and most effectively impact acquisition and/or retention.
- Talk with your customers and learn what they value most.
- Realign your brand portfolios.
- Cull what is not working.
- Identify portfolio gaps for development or acquisition.
- Recalibrate, recalibrate, recalibrate.
So, what happened with the wholesaler?
You guessed it.
No one complained that a sku was taken away. Customers actually appreciated participating in the evaluation and clarifying what was valued most. New energy was devoted to innovation. And, best of all, profits soared.
Do you find your business in a position where it could use a boost? Email me today for a free consultation.
Susan K Spaulding is an Author, Facilitator, Researcher, Strategist, Consultant, and Coach.
I work with businesses and leaders to take inventory, uncover the possibilities and navigate a path forward. Storytelling is fundamental to learning, teaching, connecting and inspiring.