What to carry.
WHAT DRIVES RANGE DECISIONS
What customers demand Margin Turnover Supplier terms Storage space Cash available
WHAT TO ANALYSE
Each line by sales volume, margin and turnover.
WHAT THAT REVEALS
Lines that earn, and lines that occupy capital.
WHAT LEADING BRANDS PROVIDE
Demand that brings customers to you.
WHAT THEY COST
Thin margins, because everyone carries them.
WHAT SECONDARY BRANDS PROVIDE
Better margin.
WHAT THEY REQUIRE
Selling effort, because demand must be created.
WHAT TO BALANCE
Leading brands that attract, and better-margin lines that earn.
WHAT TO ESTABLISH
That representatives actively sell the better-margin lines.
WHY
They default to the easy ones otherwise.
WHAT TO AVOID
Adding lines without removing any.
WHY
Range expands indefinitely, consuming space and capital.
WHAT TO ESTABLISH
A review, periodically, removing what does not perform.
WHAT TO BE CAREFUL WITH
Taking on a new brand to please a supplier.
WHAT TO ESTABLISH BEFORE TAKING ANY NEW LINE
Whether there is demand What it will cost to stock What the supplier provides What minimum commitment applies
WHY MINIMUM COMMITMENTS MATTER
Brands frequently require a minimum purchase that becomes dead stock.
WHAT TO NEGOTIATE
A trial quantity, and return terms.
