Jon Ragatz Consulting Since 1999
  Product Line Reviews  

You probably know about Vilfredo Pareto - the nineteenth century Italian economist who first observed, in 1906,  that a small amount of causes are responsible for a large percentage of effect?  From this came the Pareto Principle, commonly referred to as the 80/20 rule.

This forms the basis for most quantitative product line reviews.  For example, I recently discovered that a client with just over 700 items derived over half of sales from just 28 (or to stay truer to Pareto, that 80% of sales came from just 14% of items).  In addition, over 550 each contributed less than one-tenth of one percent and collectively only 12%

 
 

of total sales.  Clearly, some important decisions had to be made, but simply discontinuing slower items is not always the best answer.  Some are new products, others may be extremely profitable, still others may be essential for secondary reasons, and so on.

At Jon Ragatz, Consulting, I can help you analyze products and customers and come up with appropriate strategies to help significantly improve your bottom line.  Associated benefits include freeing up management, sales and administrative time;  reducing warehouse space;  decreasing capital requirements;  and, allowing your company to concentrate on what it does best.

 
       
     
Contact me to discuss how I can help you review your product lines.
 

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