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Retail Game: Developing Strategy for Channel Partners

August 25, 2010

Did you ever notice that your grocery market’s sale items are usually in the back of the store? Grocery stores are very sophisticated at knowing what products drive traffic to their store – some times at a loss. They are also very good at tempting you to buy their most profitable items such as produce and flowers. The market also fills their low volume shelf space with high margin slow movers such as a laundry basket. Why is this relevant to a Solution Provider? Because you need to think about your business with the same strategic process?

For example, is Hardware a “Traffic Builder”  (the on sale turkey), Manages Services the “Winner” (Bakery item that you can only get here), Video Conferencing the “Sleeper” (would you like to try our meatloaf) and the Printers the “Loser” (Doughnut)?

The first step is to break your products and services into different buckets. Then make a chart and place the name of the product or service into a category. This is a great activity for a management offsite. It will help you develop your strategy and help you to differentiate over your competition.

Look for future postings that will present you with ideas for “Winners” and “Sleepers” to add to your assortment.  Also, How to Differentiate Your Business (make a competitive partner’s “Winner” your “Traffic”) and Do you want Fries with that….

How do you categorize your revenue “buckets”?

This blog will be about one thing and that’s helping you run a more profitable business.

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