Adding Product Lines to Your Business

Vince DiCecco is a dynamic and sought-after seminar speaker and author, with particular interest in business management/development and marketing subjects. With over 20 years experience in sales, marketing and training, he is presently an independent consultant to businesses looking to sharpen their competitive edge. Vince addresses a wide range of topics focused on nurturing customer loyalty while improving profitability. He may be reached via email at vince@ypbt.com.

Regardless of the product lines you want to bring on to expand your offerings, you have to take a good hard look at what is the profit margin for that line of products. If you’re going to add products to your mix, then you’ll want to consider the going rate of profitability for that new product line. Think about your gross profit margin. The gross profit margin is similar to your pulse — keep a finger on your pulse to know what direction your business is heading. Will the new product line dilute your gross profit margin or enhance it? Prices may need to be raised in order to maintain your gross profit margin if it’s going up. It could go up if the demand for the product is greater. 

—Vince DiCecco, Your Personal Business Trainer

Read more about Inviting New Products into the Mix.