SKU Expansion

Strategic SKU expansion increases revenue without proportional effort increase.

Expansion Types

Horizontal Expansion

• Same niche, new variations
• Examples: New colors, sizes, themes
• Risk: Low (proven demand)
• Effort: Low (templates exist)

Vertical Expansion

• Same customer, new product category
• Examples: Wedding invitations -> wedding decorations
• Risk: Medium (new skills/suppliers needed)
• Effort: Medium

Seasonal Expansion

• Time-limited products for holidays/events
• Examples: Christmas, Halloween, back-to-school
• Risk: Low-Medium (predictable demand)
• Effort: Medium (time-sensitive)

Expansion Rules

1. New SKUs should leverage existing templates/processes