Saks Gloweli Business Tip – Cannibalize your own Sales
Cannibalization is the disminishment of the sales of one’s own product through the introduction of a competing product. But it is better to suffer a loss at one’s own hands than to have a competitor introduces a product that takes away those same sales.
Putting an improved product on the market does not necessary mean your older product must be discontinued. Because development, tooling and other costs for the older products have been covered, the old product can be sold at a considerably lower price than the new product, giving the customers the option of buying the old product at a low price or the new product at a higher price. It is important, however, that the new product offers something that the older one does not in order to prevent confusion or resentment among customers.
By Sid Mewara, Managing Director, Saks Gloweli Consulting Saks Gloweli Consulting is a management strategy consulting firm based out of Shenzhen and Hong Kong that helps clients grow their business www.saks-gloweli.com