Increasing and decreasing the product range

A product range is the set of different products a business sells. As a business evolves, its aims and objectives may change, and it may increase or decrease its range.

Increasing the product range

A business may widen its range to satisfy demand in a growing market, because customers already want something it does not sell. A new flavour, size or colour can attract more customers. Selling several products helps spread risk: if one sells badly, the others still bring in income. Every extra product is also a chance to increase sales, as existing customers may buy more than one item.

For example, a skateboard maker might add scooters, helmets and pads. Its riders buy pads as well as decks, and parents have more gift choices.

However, a wider range raises costs and complexity: more stock to buy and store, extra equipment and more training. It can also dilute the brand if cheap items sit alongside premium ones, so customers are unsure what the business stands for, and keeping quality high is harder.

Decreasing the product range

A business may shrink its range when products are selling poorly or underperforming. Dropping them saves money tied up in stock and packaging, and lets staff focus on core products that sell best.

For example, a stationery company might stop making printed diaries once most customers use phone calendars. Dropping them frees cash and space for notebooks that still sell well.

Cutting back can reduce costs and simplify operations, but a business may lose customers and sales if shoppers take their spending elsewhere. A smaller range is not always failure: it can be a deliberate way to focus on the most profitable products.