How to Maximize Your Margins with the Right Product Assortment
Once you’ve identified your best-selling products, ideally by determining sellable velocity, the next step is to dig deep into your product assortment margins.
Treez Sr. Data Product Manager Elling Hofland shows you how to do that within Retail Analytics in this clip from our January webinar, Dank Data: How to Drive Dispensary Profitability & Operational Efficiency.
Optimization opportunities jump out when you compare your product line’s performance against its profit margin and average retail price, like an A/B test for mid-priced cartridges.
Elling suggests extracting a few lower performers with lower margins in the same category as high-margin, high-performing products. Run a month-long experiment where you don’t stock one of those products in the low group. Check your Product Line Performance 30 days later and reassess whether that product needs to be on your shelves.
You can also use a Product Line Performance assessment to decide your strategy as a new product joins the market. Take the new product’s margins and compare them to your current inventory’s Product Line Performance. How many units would you need to sell to be profitable? Can your market support the prices required? Should you hustle for market share in a buzzy brand race or should you avoid a race to the bottom?
The answers to these questions are found inside your own store’s product line performance.
"Typically I have to pull ten different spreadsheets and put it all together to get that data. So being able to see it visually like that gets me super excited,” Jeremy Johnson from Dispense said.
With Retail Analytics, Treez provides dashboards with every major role in mind. Product Line Performance gives your inventory managers total clarity into margins and inventory, by brand, product, or product type. Sales numbers, inventory, and what quantities to order are digestible and on mobile devices, and are available on a single-view dashboard, instead of needing to toggle back and forth between multiple dashboards.
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