How Many Products Should Food Entrepreneurs Sell?
Why less (choice) means more sales. Have you ever heard of “Choice Overload” or the “Paradox of Choice”?
It’s a paradox because the more choice you offer your customers, the more sales you should make. Right?
But research has shown that choice actually can be demotivating and get in the way of sales. Why?
What is the Paradox of Choice
The Paradox of Choice suggests that the more options you give people, the more time they’ll take to select a choice. Unfortunately, this may not be something they’re prepared to do.
First, food entrepreneurs have a tendency to want to sell everything. If you’re a bakery you want to sell all baked goods. Are you a hot sauce manufacturer? Do you want a wide range of hot sauces? If you make popcorn, is your first desire to sell as many flavors of popcorn and possible?
Second, when people have too many choices, the reality of choice shifts to no choice. And as choices keep growing the negativity creeps in. Too many choices can contribute to bad decisions, anxiety, stress, and dissatisfaction. Oh, yes, and no sales.
We Are Creatures of Habit
Consumers tend to return to the products they usually buy, not even noticing 75% of the items competing for their attention and their dollars.
Can you catch the attention of the consumers in your community? If you can, there a chance they will fall in love with your products, making you a household name.
When 24 varieties of jams were available for sale; the large array of jams attracted more people. The table with a small array of 6 jams fostered the same number of samplers. And in both cases, people tasted about the same number of jams on average.
Thirty percent of people exposed to the small array of jams actually bought a jar; only 3% of those exposed to the large array of jams did so.
The jam experiment proved a large array of options discourage consumers from buying.
Reduce your selection. Master food production of your product. The goal is to become the best at what you do and limit the amazing products you offer for sale.
Less is more, but make sure the less is a superior choice!
If you have not watched the Jam Experiment, here it is!