Every item in your merchandise/product assortment has two key attributes.
- It is purchased by newer customers, average customers, or loyal customers.
- It either adds to the future value of customers, is neutral, or detracts from the future value of customers.
If you have to take a bath on an item because the cost of goods on the item skyrocket over the next few months (or it doesn’t, who knows), take a bath on items that appeal to newer/loyal customers and/or items that add to the future value of customers.
Perform the analytics and know exactly who each item appeals to … know if that item adds or detracts from future value.
