Over-Diversification

Two to three years ago, as the recession was taking hold and the industry was battening down the hatches, we were told that diversification of the products we sell was one of the ways we could make sure our revenue streams remain flowing.

The idea was good in principle, but is diversification leading us to take our eye off the ball? What I mean by this is that our staple products of windows, doors and conservatories may have been slightly overshadowed by the effort to establish new products into the portfolio. 

New products often take time to establish, within the company. It takes time for the public to recognise, which often means to draw them in, low profit margins have to be applied if the product is a small one. Large products can demand a larger margin, but in a recession where people are tightening their belts, big ticket purchases are few and far between.

I'm not against diversifying the range of products we sell. But I do think that if we add new products to the range, they need to be in conjunction with the staple set of products and services sold. Some could be in danger of putting too much effort into new products and leaving windows and doors behind, which to me is dangerous. 


Personally, I'll stick with my windows, doors and conservatories - it makes up the bulk of our work and it's working for us right now.


Feedback welcome!


PS: I will make more a conscious effort on here and Twitter in the future!