June 07, 2017

Annual Demand From New And Existing Items

I've got a story to tell you today ... look at annual demand from existing item (items being sold for at least one year):

We easily discern that Management "did something" ... most likely they discontinued the sale of a handful of existing items, somewhere in early fall 2014. Look at what happened to demand when they did that? By early fall 2015, the trend stabilized.

When this happens, the only way to offset demand losses is to grow demand from new items, right? What does the image look like for new items?

Just like that, we have our story.
  1. In early fall 2014, Management decided to discontinue many "existing" items, causing sales among existing items to decline.
  2. Around October 2014, Management ramped-up new item development, and sales increased nicely, somewhat offsetting declines in existing items.
  3. In late spring 2016, Management cut back on new item development or failed to find high-selling new items. New item demand dropped significantly, and existing item demand did not increase.
  4. This is why the business is struggling in the past six months.
These are easy, simple, quick diagnostics you can run on your business at any time. Just do it! You'll give Management hope, because you will quickly discern why your business is not meeting sales targets, and the results are immediately actionable.

Go run these diagnostics, right now, ok??!!

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