As with any product-based business, it can be very easy for you, as a cabinet dealership or remodeling compant, to become accustomed to a core group of product offerings and continue selling the same products for years. However, just like any other product, cabinet product lines also go through a “life cycle.” Although the life cycles of your products don’t change as rapidly as those in, say, fashion or children’s toys, cabinets do indeed go through life cycles similar to those of other products. But how can you tell when a product is nearing the end of its life cycle? Here are the top 5 warning signs that your cabinet dealership should consider discontinuing a product line:
1. Square peg in a round hole
If a product no longer fits with your company’s specific focus, that’s a huge red flag indicating that it’s time to consider dropping that product line. When a product becomes out of place in comparison to the rest of your products, it creates dead weight for your company’s sales.
2. Can’t see the forest for the trees
Sometimes, adding new products creates a glut of options that prevents customers from making successful choices. When you add new products to your lineup, make sure that you also analyze the sales for older models, to see if older models should be removed from the lineup. Remember, a good customer experience will lead to successful sales!
3. No money, no problem?
A major warning sign that a product line should be discontinued can be found in sales reports. Is a product not making your company a profit? If your product isn’t turning a profit– whether it’s too expensive to make, or it’s simply not selling– it’s time to take a closer look at the value of keeping that line.
4. Downhill demand
If customer demand for a specific product declines sharply, or decreases steadily over time, that should indicate to your company’s decision-makers that the product line needs a reevaluation. Decreasing demand might be caused by a variety of reasons, but the eventual effect is the same: the product is no longer successful for your business.
5. Status quo or status no?
On occasion, a company must reevaluate all of their product offerings. In a decision whether to maintain the status quo or to alter the company’s strategic direction, it’s essential that product lines be examined closely. If your company decides to stray from their status quo, there’s a good chance that products will need to be discontinued, and new products introduced to better meet the company’s new needs.