Competition
What term refers to other businesses trying to attract the same customers?
Competition
What does marketability measure?
The ease with which a product can be sold.
What is profitability?
Profitability is the amount of money made from sales.
Define consumability in the context of retail.
Consumability refers to how quickly products are used up.
What are seasonal goods?
Seasonal goods are products that sell well at certain times of the year.
How can a small store differentiate itself from a big-box retailer?
By offering additional services or unique products.
Name a product that typically has high marketability.
The latest smartphone.
Why is it important to understand the profit margin of products?
Understanding profit margins helps determine pricing and inventory.
Give an example of a product with high consumability.
A bag of coffee beans
Toilet Paper
Milk
Bottled Water
Name a product that is considered seasonal.
Skis or swimsuits.
What is a strategy that involves selling unique items that large retailers might overlook?
Partner with a local business, or make your own merchandise.
What type of products should a retailer have to attract customers?
Retailers should have some very marketable items.
Compare the profitability of grocery items to that of electronics.
Grocery items typically have low profitability compared to electronics.
Why is it beneficial for retailers to sell consumable products?
It encourages repeat purchases and builds customer loyalty.
How do seasonal goods impact a retailer's inventory strategy?
They require careful inventory management and discounting strategies.
Describe consultative selling and its importance in retail.
Consultative selling is important to match products to customer needs.
How can predicting popularity impact a retail store's inventory?
It helps avoid overstocking unpopular items.
How does selling high-margin items influence retail strategies?
Selling high-margin items can sustain business with fewer sales.
How does consumability influence customer loyalty?
Loyal customers return frequently, creating more sales opportunities.
What challenges do retailers face when selling seasonal goods?
They may need to discount items heavily to clear them out.
How does competition affect pricing strategies in retail?
It can force retailers to adjust prices or offer unique value propositions.
What is the relationship between marketability and profitability?
Higher marketability can lead to higher profitability.
What can retailers do if they have low profitability products?
They can analyze costs, optimize pricing, or discontinue low-margin items.
Discuss the implications of low consumability products for inventory management.
They face challenges with inventory turnover and potential waste.
How can discounts on seasonal items benefit retailers?
Discounts can help move inventory quickly before it becomes unsellable.