Determining how many products should be offered in a collection or product line is a crucial decision that requires a thoughtful and strategic approach.

Here are steps to help you determine the right number of products for your collection or product line:

FOR START-UP BUSINESSES

1. Define Your Collection’s Purpose and Goals:

Begin by clearly defining the purpose and objectives of your collection. What is the collection meant to achieve? Is it designed to cater to a specific customer segment, address a particular need, or align with a certain brand image?

2. Understand Your Target Audience and Analyze Market Demand:

Conduct market research to understand your target audience’s preferences, needs, and buying behavior. Are they looking for variety or simplicity? Some consumers prefer having many choices, while others may feel overwhelmed by too many options. Tailor your collection size to suit your target audience.

3. Testing and Feedback:

Start with a smaller collection and gather market feedback. Analyze sales data, customer comments, and reviews. Adjust your collection based on this feedback to meet actual customer preferences.

4. Consider Competitive Landscape:

Analyze your competitors and their product offerings. Identify gaps in the market or opportunities to differentiate your collection.

FOR ENSTABLISHED BUSINESSES

1. Analyze Your Sales

Look at your sales from the last years and check how your customers are buying your product line. What is the maximum number of different products any customer bought from you? What is the average number of products they usually buy from you?

2. Align with Brand Strategy and Analyze the Market:

Ensure that the number of products aligns with your brand’s positioning and strategy. Some brands thrive on offering a limited, curated selection, while others may benefit from a broader range of products.

Keep monitoring your competitors, their product offerings, and the changes they make. Analyze the market and identify opportunities. Be competitive in terms of variety and quality.

3. Evaluate Production and Supply Chain:

Assess your production capabilities and supply chain. Determine if you can efficiently manufacture, stock, and distribute the desired number of products without compromising quality or incurring excessive costs.

4. Budget and Resources:

Factor in your budget and available resources for marketing, inventory management, and product development. Expanding the collection requires additional investment.

5. Sales Profitability and Cluster Analysis:

Considering all the above, and clustering your customers for the different products they buy, which are the most profitable clusters to serve? And is it worthy to serve all of them? Can I reduce the product offering while keeping most of the current business?

6. Regular Review and Adaptation:

Continuously monitor market dynamics, customer feedback, and sales performance. Be prepared to adapt your collection to changing circumstances and trends.

Remember that the ideal number of products in your collection should strike a balance between meeting customer needs and preferences, aligning with your brand strategy, and being operationally feasible. Flexibility and adaptability are key as market conditions evolve.

There is no secret rule nor a perfect number. But generally the less the better.