A diverse product range can capture varied market segments, but the behind-the-scenes challenges of sourcing components for these products can strain resources and costs.
Delving deeper, every hard-to-procure component not only pushes up your expenses but potentially disrupts your production timelines, risking promised delivery dates and jeopardizing customer trust. On the surface, offering a wide range of products might appear as a strategy to capture market share, but if it comes at the cost of consistent delays and heightened expenditures, it can lead to eroding customer loyalty and potentially diminishing returns.
It’s a delicate balancing act – securing market share through diverse offerings, versus ensuring cost-efficiency and supply consistency. Therefore, regularly evaluating your product offerings, at least annually, is crucial. By phasing out products reliant on elusive components, you can prioritize those with assured supply chains, resulting in a more streamlined operation and consistent market performance.
In conclusion, it’s about smart choices. Sometimes, focusing on fewer, easily-manageable products can lead to better profitability, sustained market presence, and a reputation for reliability. After all, a loyal customer base built on trust and consistency can often outweigh the fleeting gains from a broad but unpredictable product range.
See our top 20 free advice for rapidly reducing supplier costs