Bad Credit Business Financing: Taking Stock Of your Product Performance
Customers will ultimately dictate the path of a small business as it grows. While a brand can retain the same message and values, odds are good that as time goes on, customer feedback, market changes and the sculpting force of demand will see some products succeed and others either get tweaked or put out of production.
Each product on offer deserves to be looked at in its own right. From the bestseller to the least favorite offerings in your business, each product will cost money and time to put out there, so making sure that each is able to pull its own weight is important. Product quality is key to building word of mouth and brand recognition, so sacrificing some products in order to maintain a high standard is often a prudent trade off.
Analyze what makes popular products work. A bestseller works for various reasons. On the surface, the quality of the product itself should be considered. If a single product that you offer is selling because it is higher quality than your other offerings, then consider re-allocating some resources into improving the other products on offer, leveling the playing field and hopefully creating more sales. A bestselling product may also have potential to be improved further or elaborated into a premium product line, limited edition variation or other offering that plays on the popularity of the item while injecting an air of exclusivity to drive further sales.
Consider when to work on a poor seller and when to pull it. A poor selling product may not be hopeless, but it is important to determine whether or not improving it will take more effort than it is worth. Sometimes business owners will have to actively fight the urge to offer too many products, wanting to serve every possible customer demand when it would be in their best interest to pare down their offerings and improve their product quality and marketing. The same factors that make a product a best seller should be analyzed in order to discern what the issue is and if it can be fixed before making the decision to pull it. In addition, doing some opinion gathering among existing customers can help paint a better picture of what your customers think about the product in question.
Photo Credit to Orange County Archives on Flickr