We’re into a new year and you still have a chance – a chance to re-tool and get the bottom line in an upswing. But what really caused the dip in your profits last year? If you do nothing else, examine your product relevance. Do you ask yourself if the product is going to be alive and well in the marketplace in the next five- to ten years? What’s the measure of product need/relevance? Usage.
Let’s face it: product is king. If a company didn’t have a profitable product, there’s a problem. It’s either relevant, or not; progressive or obsolete; or on a deadly decline for some unknown reason (like, there is something better out there).
Businesses have to examine and assess products from what customers are wanting. If you have not assessed or examined your products against customers’ feedback (and non-customers’ feedback), well, you are in deep doo-doo. It’s the beginning of the end.
But, when do products become obsolete? Every product must have a decline at some point. (Typewriters, White Out gunk, floppy disks, two-inch video cassettes, music cassettes, just to name a few). What inventory of yours is not selling and costing you big-time in warehouse inventory? If you don’t know, you better. And, stay aware of what your customers, as well as your competitors, are telling you.