If your company’s sales results were a dance floor, how would it look? Are the numbers jumping off the page, dazzling you with their lively performances? Or are they slow, sluggish — perhaps even disappearing entirely? To keep the party moving, every business needs to regularly remix its line of products or services.
There are many potential causes of a sales slowdown. But these troubles aren’t all bad — they can help you shape the sound of your revised offerings. Start with the obvious: Are your customers drifting away? Conduct market research to find out whether they still like what you’re selling or if their needs have changed. Evolution is normal, so be ready to adjust your menu to keep pace.
Also look into how long you’ve been offering the same products or services, and whether you’ve saturated the market. Some things have enduring value, but demand for others can wane as new products take the spotlight. Regular evaluations can help you decide whether you should:
- Test a product or service in a different market or geographic area;
- “Reinvent” a product or service (for instance, by repackaging or renaming it); or
- Discontinue it.
Finally, don’t ignore the economy — both national and local. Market conditions can influence the sales of even the strongest products or services. Try to bolster the strongest ones, but also consider discontinuing weak ones or adding new ones that reflect the strength of the local economy.
“When I first started in public accounting, our firm had a chain of women’s clothing stores as a client. The owner would hawk the sales numbers like crazy. When a particular item was not moving in store A, he would hop in his van and take it to store B. If an item was selling like hotcakes in store A, he would move inventory of that item from other stores to store A. Worked like a charm.” Michael Febrey, CPA
An effective remix of your products or services can turn a sad song into a happy tune. For help making the right tweaks, please give us a call.