How Many New Items?

FYI - when you sign up for a Category Development project, you receive the "Class Of" analysis we're discussing in this series (click here).

Ok, here's our table.

There is a relationship hidden in the table.

• 594 items = $8.0 million in new item sales.
• 235 items = $3.9 million in new item sales.
• 579 items = $9.5 million in new item sales.
• 603 items = $8.7 million in new item sales.

Graphically, the relationship looks like this:

Here we have our friendly law of diminishing returns ... it appears practically everywhere once you know how to look for it.

The first 100 new items generate about $2.0 million in sales.

The next 100 new items generate about $1.5 million in sales.

The next 100 new items generate about $1.4 million in sales.

The relationship progresses from there. The first three hundred new items get you just shy of $5.0 million ... while the next three hundred new items add about $3.8 million.

If you needed to get ten million in sales from new items next year, you'd need 700 new items next year.

So yeah, this stuff is really useful!