Decreasing the number of products sold can improve profits.

Question

Quizplus · Accepted Answer

Too many products can limit economies of scale, make administration difficult and result in cannibalization.
Key Takeaway: Think of the dynamics of a company that has too many product lines that are similar. We recall one case where a snack machine vendor was sourcing products from so many different vendors, they had little buying power. Consolidating their power as a buyer was the key to unlocking profitability.

Decreasing the Number of Products Sold Can Improve Profits