Have you ever stared at a shelf full of items, unsure of which one to choose? According to Columbia Business School professor Sheena Iyengar, who also consults with major brands across the globe, consumers suffer from a “choice overload problem.” Too many choices lead to indecision, and in the retail space there is an overwhelming number of options. Iyengar advises businesses to simply cut the number of products they offer.
In a TED talk given by Iyengar, she cites two examples of how greater profits were reaped by offering less. Procter & Gamble cut their varieties of Head & Shoulders shampoos from 26 to 15 and saw profits go up by 10 percent. The second example Iyengar mentioned was the Golden Cat Corporation. When they chose to cut their 10 worst-selling cat litters, they saw an increase in their profits totaling 87 percent.
Take a cue from the research Iyengar has done. By providing fewer choices, you help make your customers’ decision-making process simpler, allowing them to purchase more.
Have you analyzed your product catalog lately? Which offered products are your worst
A few industry examples:
- Manufacturing: Cutting the lowest-selling products reduces the costs wasted on labor and the equipment that is dedicated to those products.
- Retail: Removing the products that don’t sell as well will increase your shelf space for products that turn over quickly, increasing your cash flow.
- Service: If you have a service-based business, try packaging some of those unique services into your regular offerings. This reduces the list of choices while at the same time increasing your price point.
At Wax Family Printing, we are happy to offer a wide range of products and services, but we don’t want our customers ever to feel overwhelmed. We are ready to talk customers through every step of the decision-making process, and we won’t overload you with unneeded information or irrelevant solutions.
Contact us to see how we can help simplify your printing and sign decisions. Call us at (615) 893-4290 or email email@example.com.