TVM-itʼs really that simple
How much Time do you have- What Value do you delivery-How much Money does it return.
Discovering what products or service you sell the most is not really the question, the true question is what product or service do I sell that requires the least about of time- creates the most value for the customer and returns the greatest profit for the business. Itʼs that simple.
Here are some steps to understand TVM( time, value,money) products or services.If you are using POS systems, Estimating Software or spreadsheets- use the data you collect to determine the following:
- Top 10 selling products
- Top 10 most profitable
- Space require to sell each product ( sq.footage)
- Inventory turns per product ( number of times you turn the product in ayear)
The data collected will help you determine what products are selling. I realize this in elementary but this exercise should be performed over and over to make sure you are focused on results and not using the dart board mentality (DBM)- The DBM is hoping you make a bullseye every time you throw that dart. Itʼs easier to be consistence in reaching the bullseye with research about customer behavior not wild throws at thewall.
Once you have determined what sells the most with the least amount of effect, its time to deliver the message to the customer through marketing.