Profitable product mix: Specialization versus wide product portfolio
Basically, a variety of materials can be processed with a laser and thus many customer requests can be realized. To begin with, a wide range of laser-engraved products is certainly a great way to find out which items appeal to the market and which products can be used to earn good money. Whether a specialization in certain products and materials takes place over time or a deliberately broad portfolio is offered, is a strategic decision for every company. This decision is significantly influenced by the competitive situation in the region in which you operate: Are you the sole provider of laser services? Or is there already a specialist for e.g. glass engraving or wedding decorations around the corner?
As an entrepreneur, you should carefully consider your business model and weigh the advantages and disadvantages for yourself.
In terms of specialization, the workload and output can be optimized as best as possible, as the applications are always similar and you develop into a true specialist. Thus, set-up times are minimized and profit maximized. From a broad product portfolio through to individual customer projects and individual pieces, however, although you’re not a specialist in a certain area, customers for custom-made items are willing to pay more, which in turn leads to higher margins.