Quote:
Originally Posted by MattTuck
I have to believe it is at the margin. Selling a replacement item to a repeat customer sounds good. But, if you are replacing a product that has failed, I'm not sure how likely you are to go with the same brand.
I think a good quality product is more likely to result in a consumer increasing the "share of closet" to that brand. Which probably pressures such companies to keep increasing SKUs. Which adds complexity and other issues to operating the business.
So, maybe you're right. If you are selling a high quality infrequent purchase product, you need to really think about where growth is going to come from. Same product to more (new) customers or new products to same customers.
This is where brand can become really important. A brand built around one product may not translate when you try to grow the SKUs.
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This is all true. For me, I could never offer a product that didn't meet my standards even it is costing me some repeat sales.
Extending SKU is expensive. So is pushing your brand and pushing into new markets. It's just damn hard to establish the brand, even with the best quality, superior products.
I'm trying though. And I can definitely empathize with Ibex's plight and issues.
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