Product elimination

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A product elimination (including product elimination) is the removal of a product from the production program . Without product elimination, the range would become more and more extensive. That would have fatal consequences for the company's competitiveness and profit. This is particularly true of:

  • old products in the degeneration phase,
  • new products, especially flops.


The following criteria can be applied when checking whether a product should be eliminated:

  1. How high is the contribution margin ? (Carry out step contribution calculation)
  2. How high is the sales share of the product in the total sales?
  3. What is the turnover rate of the inventory?
  4. What is the market share ?
  5. How does the product affect the environment?
  6. Does the product represent an important addition to the range?
  7. Are other products dependent on this product? ( Composite effect )
  8. What associations does the product evoke?
  9. What service guarantees do I have?


Elimination candidates can be identified using the following methods:

See also