Accountants have a habit of informing marketing people that some items or services in the portfolio aren't profitable and should be eliminated. Believe it at your own risk! Consider the following examples:
Sales of "fire-rated" board were modest compared to other types in the plasterboard sector a few years ago, and the profit margin was smaller than on most other goods. What if, on the other hand, that product line was a strategically significant component of a larger purchase?
The response - a real circumstance we discovered after talking to a lot of consumers - was that it was just not worth it to acquire that one component from a different supplier when it was easier to buy the entire order from somewhere else, especially when costs were so low and service was comparable.
Another example from a different industry: a big grocery chain "rationalised" its product line by removing one type of morning marmalade and replacing it with a "reduced sugar" version from the same supplier. The old selection was preserved by the competitor supermarket. This isn't the first time a product has been rationalised across many categories, such as bread, pet food, and toilet paper.
As a result, disgruntled consumers simply switched supermarkets so they could continue to buy their favourite products, despite being creatures of habit and long-time users of that chain.
Another example is:
Because some sealants sold in such little quantities, a hardware chain streamlined its sealant selection. This was despite the fact that the item was normally purchased as part of a package deal. You already know what will happen. Certain consumers considered that brand and item to be "strategically vital," so they simply switched suppliers or, horror of horrors, bought it online instead.
Humans are mainly creatures of habit, regardless of categorization. We grow familiar with a particular store, its layout, product variety, and people in most areas. The same may be said about products and services, and there must typically be a strong cause for the shift. It happens for a variety of reasons, including a promoted item from a different store, loyalty points, a change in employees, and, most importantly, the inability to purchase trusted and known things.
If the encounter is favourable, it does not take long to form a comfortable relationship with the new provider, and this is true for both Internet and traditional "bricks and mortar" businesses.
It's possible that the new experience will outweigh the previous warm sentiments. Goodbye and best wishes.
Don't lose consumers due to product rationalisation: If a consumer has a pleasant experience with a new provider, it doesn't take long to form a comfortable relationship with them, and this applies to both Internet and conventional "bricks and mortar" shops.
