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Deciding on whether to discontinue a product should not be made hastily. You chose that product in the first place for a reason. However, if the product doesn’t benefit your company anymore or is taking resources away from a superior product, then it might be time to let go.
Sep 27, 2023 · Indicators it’s Time to Discontinue a Product: Declining Sales: Perhaps the most obvious sign is a consistent and substantial decline in a product’s sales. While belief in an idea is ...
- Total Costs. When deciding whether or not to discontinue a product, the decision should include the total costs, not just per-unit costs. You should review the fixed manufacturing costs, selling costs, transportation and storage costs, customer service costs and any other cost you can tie to the product.
- Opportunity Costs. It may come as a surprise that in addition to direct financial costs, maintaining a product also has opportunity costs. The time you spend keeping a product up to date could be put towards researching and launching a new product.
- Desired Rates of Return. As a subset of opportunity costs, you should also calculate your desired rate of return. Set goals for both profit margin and overall return on investment based on both your other product lines and benchmarks in your industry.
- Employee Morale. If you're leaning towards discontinuing a product, it's important to consider employee morale. If you suddenly shut down a product line and lay off workers, your remaining workers will feel less secure in their jobs, and their performance may decrease as a result.
Jul 28, 2020 · It can be hard to know when the right time to discontinue a service or product is, especially if you offer many. Some owners will continue selling a product because it was the original or maybe they have high hopes that a product will make a comeback.
Aug 12, 2024 · The inventory at each Costco warehouse is constantly changing. This insider tip will tell you when a product is on its way out.
- Gabby Romero
- Associate Editor
- info@delish.com
- 17 min
Sep 18, 2008 · Effective immediately, the entire Salon Selectives line has been discontinued, and retailers will begin to phase out existing product.
People also ask
When is it time to discontinue a product?
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Should you discontinue a product after a drop in demand?
Should you discontinue a product line?
Savvy business owners discontinue products all the time, but it’s never wise to make the decision spontaneously. Asking yourself these five thoughtful questions can help you make the right move—both for your customers and your bottom line.
