How many products should you have in your collection?
How many products is too many for a small business to include in their range?
This is one of the questions that is most commonly asked by my coaching clients, who are all small businesses manufacturing in the UK.
Deciding which products are going into your collection is genuinely one of the hardest things for creative businesses to get to grips with, because when you love what you make, we all know that it is very easy to get a tad carried away.
Then before you know it you’ve spent all your money on product development and you’re stuck with half of it not selling. You then either develop even more products, thinking that is the solution to making more sales, or you get despondent and feel like throwing the towel in.
So here are my tips for developing a cohesive range…
Use data to make decisions
If you’ve already got sales under your belt, you already have the most valuable tool available to you – your own sales history. Look back at what has sold and use that information to help guide your decisions on what goes into your next collection.
Is there a pattern to what colours and styles have worked in the past? Are there some things that have not worked so well?
Include a range of price points
Within your product range it’s worth having a balance of price points too. Customers might aspire to your best piece but don’t have the means to buy it. Smaller items at a lower price point give them an option to buy into your brand without making the commitment of buying the hero pieces.
Likewise, having some items which are at a higher price point for customers with more to available cash to spend means you can increase your average order value and test out more premium-priced ideas.
Watch out for range duplication
Range duplication is when two products in a collection are doing the same job and the customer is forced to choose between one or the other. For instance, say you have a navy striped tote bag and a navy striped shopper in the same range, a customer is going pick one or the other rather than buying both, which means one of those products is simply cannibalising the sales of the other.
Add new products gradually, not all at once
Rather than developing a big new collection in one go, add new pieces gradually and see what people respond to first, then layer on new ideas over time.
Multiple drops of new products throughout the year builds far more excitement than one big launch that then goes quiet. Each new addition becomes a moment to talk to your customers and give them a reason to get excited about your brand.
Word of warning
Don’t be fooled into thinking that a bigger range of products will create more sales. In fact, the opposite is usually true. There have been studies done which prove that the more choice you give a customer, the more confused they get, and the less likely they are to buy anything at all.
More products in your collection will cost you more money
A bigger range will result in more samples to pay for, more fabric or materials to buy, more stock sitting around and more products to photograph. And if you drain all your cashflow on product development that will leave you with nothing to spend on marketing and advertising to sell the products that you’ve made.
Frequently Asked Questions
Fewer than most think. There is no magic number, but the principle is to start with as few pieces as possible, get known for one thing, and add gradually based on what sells. More products does not mean more sales; it usually means more cost and more confused customers.
What is range duplication and why does it matter?
Range duplication is when two products in a collection are doing the same job and the customer is forced to choose between one or the other. One product ends up cannibalising the sales of the other. Small businesses cannot afford that kind of waste in their range.
No. Launching with a large collection is one of the most common mistakes new brands make. It drains start-up budget, slows the launch down, and often means the founder runs out of steam before the products even reach customers. Start small, listen to what customers want, and build from there.
By looking at their own sales history first. The data on what has sold, which colours and styles have worked, and what has not moved is more valuable than any new idea. New pieces should complement what already sells, not replace it.
Research shows that the more choice a customer is given, the more confused they become and the less likely they are to buy anything at all. A focused, curated range makes it easier for customers to make a decision.
80% of revenue will typically come from 20% of products. This means a small business is better served by identifying and investing in their strongest performers than by continually expanding the range.
Customers who love a brand will not always have the budget for the hero piece. Lower price point items give them a way into the brand, while higher price point items serve customers with more to spend and increase average order value.
Cashflow. More products means more samples, more materials, more stock, and more photography costs. If all available cash goes into product development, there is nothing left to spend on marketing and selling what has already been made.
