Friday, November 19, 2010

How is merchandising relevant to an entrepreneur?

How is merchandising relevant to an entrepreneur? 

In order to answer this I need to first define what is an entrepreneur. By definition an entrepreneur is someone who solves a problem or provide a solution for a profit. The key word here is profit.

Based on numerous research for an entrepreneur there are only 3 ways that you can increase your profit. You can argue all you want but there are only 3 ways you can do it. The 3 ways are:

1. Increase the number of clients that the entrepreneur has.
2. Increase the frequency that the clients spend with the entrepreneur.
3. Increase the amount that the clients spend with the entrepreneur.

If you look at the 3 ways listed above hence merchandising is definitely relevant to an entrepreneur. Through the proper and right merchandising campaign, an entrepreneur can effectively promote it's brand and increase it's number of clients resulting in more profit.

A wide range of merchandise can be used to encourage higher frequency of purchase from the same clients resulting also in more profits. And finally merchandise is a fantastic way for you to do up selling, cross selling and back end selling so that the entrepreneur can increase the amount a client will spend. This will definitely help to boost profit.

One of the best example would have to be McDonalds with their Happy Meals. They really milk is such that they produce merchandise with every possible hit movies or cartoons.

In short, YES! Merchandising is very mich relevant to an entrepreneur.

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