Another Way To Depict The Challenge

If a business discontinues too many existing items (or fails to introduce sufficient quantities of new items), we should be able to see the problem manifest via sales declines. Right?

Here is a scatter plot of number of items sold each year (>= $1,000) on the x-axis ... the y-axis shows us annual sales per item.

The three outliers on the bottom left of the chart? Those represent the past three months when this brand also decided to not spend money acquiring new customers, compounding their own challenges.

Otherwise, there's a clear relationship. Every additional item offered yields an ever-decreasing rate of demand/sales.

Is this good or bad? It almost looks bad.

Let's perform a multiplication.

• "Beans" generates $9,800 per item when it sells 2,700 items = $26.5 million.
• "Beans" generates $12,750 per item when it sells 1,900 items = $24.2 million.

In other words, fewer items = less demand/sales.

Pair it with a customer acquisition catastrophe in the past three months (largely caused by reductions in the marketing budget) and "Beans" has problems.

A group of Professionals appear to have harmed the business, all independently, on their own.

It will take a team of Professionals, working together, to rebuild "Beans".

Ready for your own customized "Categories" project? Contact me now (kevinh@minethatdata.com) ... click here for additional information.