Perfect Product Mix

We often talk about the importance of product mix, right product mix etc. What exactly is this product mix? In layman terms, product mix is the sum total of all the product items and its variants offered by an organisation. An appropriate product mix will can not only keep your customers satisfied but also provoke them in repeat purchasing.

There are few items which are not at all influenced by changes in the market or introduction of new items. Operators must make sure that they offer these products in order to have continuous sales and maximise profits over a period of time. Operators also need to rotate the products offered from time to time. This is known as category management. This helps in offering a wide variety of products to customers and thereby gains their attention.

Category management simplifies product selection at warehouse and thus makes sure that operators have complete control over the entire process. Operators can also control costs and mobilise resources successfully. This process when implemented in your business allows you to reap huge profits and save immensely. The three main areas where such savings are possible are:

• Category management is successful in reducing number of stock keeping units at the warehouse. Hence you need to invest only little amount in purchasing stock.

• Because of close monitoring efficiency and performance of route drivers and warehouse labourers increases. Thus overall profitability increases.

• A good product mix will ensure higher sales and profitability from different vending locations.

The main aim of implementing this process is to select fast moving products for your vending machines. Once you stock your machine with these products your sales will automatically pick up. This is also effective in reducing your investment in inventory. It has been observed that category management has succeeded in reducing inventory cost by 40%.

So what else are you waiting for, choose the perfect product mix and reap huge benefits.