Highlighting Process of Assortment Planning
Assortment planning is the efficient method used by wholesalers to decide which products variations to import or sell out in the coming seasons. The assortment plan involves identifying plan parameters, identifying targets, create assortment, evaluate, and execute.
Traders plan the assortment based on two dimensions
- Breath/Width: the number of product kinds and categories
- Depth: the number of variations in every category/product.
Assortment planning is all about making the right decision about the products in an online business such as what kind of products the business will sell, how much quantity it will stock, and keeping in view the latest market trends. It begins with the types of products that customers want to see in the market. The next important part is to select the right quantity of products you want to order at the first time. The reason is if you order too much less quantity, you will probably be going to miss the sales opportunity. Customers do not wait for long, it’s up to you that how will you grab your customer’s attention.
Secondly, if you order too much extra quantity of products, you will probably be going to face a loss in your business. When there will be no customer to buy your products then you might need to sell your products at less price or discounted price to get rid of them. Ordering too many products will also make your business suffer because the market trend changes rapidly. Following the market, the trend is very important because customers mostly wish for a trendy product. That is why assortment planning plays an important role in buying and selling products.
How Assortment Planning Is Beneficial For Retailers?
Assortment planning is very beneficial for retailers as it tells the estimate of profit for a business. A retailer knows how many amounts of products to order through assortment planning. There are very few chances to face a loss. Assortment planning will tell the retailers about the market trends that are what is in fashion. It tells the estimated quantity of products a retailer should order for the sales for the profit margin. Retailers also consider two terms for the products. One is the width and the other is the depth of the product. Width is the number of categories of products and depth is the quantity of each product of a single category. A clear understanding of business targets, expectations, and mission is the foundation of effective assortment planning in trading.
Tips for Improving Assortment Plan
The efficiency of a successful assortment plan depends on multiple techniques that a retailer must consider:
- Understand Market Trends
Before jumping into a new business or making an assortment plan for an existing business, you should research the trendy product. Do proper in-depth market research for getting know-how of what is trending among the customers and what products are getting more sales and 5 stars feedback.
- Lead Plan in Real-Time
It is significant to run an assortment plan in real-time. The use of intelligence tools in retail helps in suggesting the effect of decreasing or increasing certain products from the market, handling the visibility of items, and managing discounts at the right time. It is recommended to sell your products at a little less price than your competitor’s price but not much less than you will be left with no profit.
- Combine Styles to Sell
The style or varieties of product lines vary from brand to brand but things must be kept in mind while making an assortment plan. Use trend-forward styles, styles from previous seasons, current season styles, and use attractive colors in every product range. In addition to that, try to avoid seasonal products because seasonal products only get sold for one season, not for the whole year. Get more information at thenevadaview.com, So try to research about the product that is unique and also matches the customer demand. After researching, it is important to build a rough plan to estimate your sales and profit.
- Manage the Product Quantity
Quantity of products is very essential for a successful business. So mark the estimated width and depth for a product. Try to deal in fewer categories as when you deal in too many categories, it will be a little messy to make a good assortment plan.
Customer’s expectations are increasing for the retailers day by day, therefore; a well-maintained assortment plan is a basic need. Making an assortment plan is the best decision for a better business. If you have an assortment plan, you will already get to know your profits and you will be confident in what you are dealing with.