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Wednesday 6 March 2013

Don't Waste Your Space On Non-Profitable

The way the stores make their money is quite simple, they provide consumers with temptations. They pay close attention to both their customers' needs and what they will buy. Consumers also tend to forget that all stores are interested in one thing - profits.

The stores purchase exactly what they predict their customer will buy, put it on a shelf and tell you all about it. They don't care if you already have another one that's still good or if you need it or not. All they care about is whether or not you'll buy it. If for some reason the product doesn't sell they will cut the price so it is even more tempting for you. If marking it down doesn't work they get rid of it. Even though the store spent money on their inventory, they do not waste precious shelf space on anything that is not currently useful for them, that is to say... making them money.

So what does this have to do with you?
First of all, just because a store stocks, it doesn't mean you have to buy it. The store's goal is to sell their products to you not make you happy. You do not have to buy the "newest and brightest" just because it is available. Give yourself permission to take control and ask yourself if you really need the product and how you will use it. Ask yourself if there is something that you already have that will work instead. Ask yourself if it will end up sitting on your shelf.

Second, imagine you were a store manager and take a few minutes to look around your office. Are there things in there that are beyond their shelf life? Are there things that you already own that will never be used? Are you wasting your space on things that are not profitable for you?

Sure some of the products you have may be "good" and there is nothing to say you can't use them but if you would prefer to have this year's model then recognize that last year's model isn't worth anything and let it go. The money you spent is already gone, now it's about shelf space.

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