Easy Opportunities For Manufacturers

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We visit retailers almost every day to purchase products that are often not even available. Consequently, the effect is threefold:

Customers are disappointed and frustrated.

The retailer loses the opportunity to sell exactly the product the client wanted to buy.

The manufacturer; who stocks this product in a warehouse…

… is often not aware of the issue!

Sadly, the manufacturers simply don’t seem to look at the right place when it comes to analysing sales.


Bob, sales manager for a manufacturing company of portable computers, makes the monthly audit with his leading account manager Max Power:

“Well done Max! Your stats are good and we have an increase of 3% over last year. Next month we’ll have to focus on promos for the Holidays…”

Meanwhile John, smart shopper, visits a local store to purchase the brand new portable manufactured by Bob and Max’s company… Weird… the product is not available…  With the help of the dealer, he chooses a product of the competitor…

And there you go! One missed opportunity for Bob and Max…


Only  an anecdote  you’ll say?… Well not really…

Picture this:

Bob and Max’s company distributes portable computers in 2000 stores.

For each sale, the company generates a 75$ profit.

Every 2nd day in 5% of the stores, at least one person buys a competitor’s product because the desired product is not available.

Let’s do the math!

2000 stores X 5/100 (stores with product not in stock)

X 75$ (profit per sale)

X 180 days (number of days with a lost opportunity)

The result: a shortfall of 1, 350,000.00$.

Now let’s imagine that Bob and Max had clear information and statistics which allowed them to see that even with the increase in sales:

Their product didn’t sell for months in 5% of the stores.

The product should be in stock.

I bet they would know exactly what to do!

I bet there would also be less and less Johns buying the competitor’s products!

There are multiple ways, some easier than others, for manufacturers to take advantage of the opportunities and contribute to the costumers’ satisfaction.


What’s really important is to look in the right direction.


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