New Items and Demand Elasticity

Remember our table from yesterday?

I want to show you something ... look at projected four-year value of new items based on how many new items are introduced during a quarter:

What does the graph tell you?

Well, if you offer a small number of new items, you get a lot of demand per item.

If you offer a large number of new items, you get a small amount of demand per item.

There's a relationship here ... and tomorrow, we'll see how much long-term demand you get based on how many new items you offer per quarter.