Deciding to discontinue a product is genuinely difficult, particularly when it’s a flagship product the business built its identity around, but attachment isn’t a genuine business case, and understanding what actually determines whether discontinuation is the right call matters more than emotional resistance to the decision.
These are the factors that genuinely determine whether a product should be discontinued.
Look at genuine, current performance, not history
A product’s genuine current sales, margin and demand trend, not its past performance or the emotional investment in launching it, should drive the discontinuation decision.
A product that was genuinely important two years ago isn’t automatically still important today; the current data needs to speak for itself.
Understand the genuine opportunity cost
Resources, shelf space, marketing attention, production capacity, tied up in an underperforming product carry a genuine opportunity cost, since they could otherwise support a better-performing product or a new opportunity.
This opportunity cost is often invisible until it’s explicitly calculated, which is why it’s worth doing deliberately rather than relying on a general sense that a product is still doing fine.
Consider genuine customer impact honestly
A small but genuinely loyal customer base for a product being considered for discontinuation deserves honest consideration, weighing their genuine value against the broader opportunity cost of keeping the product.
This doesn’t mean loyalty should prevent every discontinuation, but it should be a genuine factor in the decision, not ignored entirely.
Execute the genuine discontinuation properly
A well-managed discontinuation, clear communication, a reasonable wind-down period, alternatives offered where possible, protects customer relationships better than an abrupt, unexplained removal.
Our guide to why you need to share client success covers this, and communication should stay within the consumer protection standards set by the Department of Trade, Industry and Competition.
Frequently asked questions
Is attachment to a product a genuine reason to keep it?
No, a product’s genuine current performance should drive the decision, not emotional investment in it.
Should past performance justify keeping an underperforming product?
No, a product that was important in the past isn’t automatically still important today based on current data.
What is the genuine opportunity cost of keeping an underperforming product?
Resources like shelf space and marketing attention that could otherwise support a better-performing product.
Should loyal customers of a discontinued product be considered?
Yes, honestly, weighing their genuine value against the broader opportunity cost, though it shouldn’t automatically prevent discontinuation.
How should a discontinuation be executed?
With clear communication, a reasonable wind-down period, and alternatives offered where possible.
