As is the case for any retailer, the fresh, new inventory is what brings regular customers back, and brings new customers in more often - whether online or in the store. If sales are flattening out instead of growing consistently, it's time to take a serious look at product development. Here are a few critical questions to analyze before creating new products:
Which products are newest in the store? How long has the old product been offered? If you compare the total sales reports to each piece of merchandise, what are your strongest players? What are your weakest? As any retailer needs fresh merchandise regularly, and it is best to eliminate the weakest products from the line-up to make room for new items. Of course new items are a gamble until you have sales numbers to measure your shoppers’ reactions to them, but that’s reason to start with the smallest possible quantity on the first order. If the new item is a hit, then by all means order more… and then more… and finally, more!
Any retailer following this formula will see sales volume rocket towards the stratosphere (There are other conditions that may hinder sales, such as poor personalities among the staff, etc, but we trust the bad eggs are not allowed to remain in the egg carton to spoil the rest).
Look at the sample items enclosed objectively. What of the samples are already represented in the store? Which items have a purely function purpose? Which have an aesthetic purpose? Which ones serve both purposes to your customers? Now consider the niche market that each item serves among your customer base. Is there a customer profile who visits the store (other than young children), but rarely purchases anything to your knowledge? What kind of items need to be added to attract their spending dollars as well?
This may seem like a lot to digest, but it’s a winning formula in retail. Good luck coming over to the winning side of product management, and feel free to contact Keystone Specialties for help.
