Why trimming the fat from your catalog can actually unlock revenue instead of shrinking it.
There’s a persistent myth in distribution: more SKUs = more sales. But for those who’ve been in the trenches of ceramic part distribution or sheet glass stocking, the reality is more nuanced. In many cases, removing the right SKUs not only improves efficiency—it drives higher revenue.
Let’s break down how.
Imagine you’re a distributor of engineered ceramics with over 3,000 SKUs, from thermocouple protection tubes to precision zirconia inserts. You believe that your breadth of catalog is a competitive advantage. But over time, sales reps begin to complain: quoting takes too long, clients get confused between similar products, and warehouse errors go up. Meanwhile, your highest-margin items—the ones most clients actually reorder—are buried under less profitable or obsolete SKUs.
This was the case for a Pennsylvania-based technical ceramics distributor. A deep-dive SKU rationalization revealed that 47% of SKUs hadn’t been ordered in over 18 months. Worse, the 10 slowest SKUs had absorbed more than 20% of annual inbound freight costs due to small-lot custom imports. The company removed 400 low-impact SKUs and refocused sales teams around a slimmed-down catalog of 1,800 strategically grouped products. The result? Quoting speed improved by 30%, warehouse errors dropped, and sales rose 12% in the next fiscal year—driven by increased conversions and faster fulfillment.
In the glass industry, similar stories abound. A distributor specializing in commercial-grade safety glass found that five variations of frosted and sandblasted finishes—originally brought in to satisfy boutique designers—had become dead weight. After removing those SKUs and doubling down on two core finishes, they freed up both shelf space and working capital. They then reinvested in custom cutting and same-day pickup services for their top 25 clients—leading to a 17% bump in repeat orders.
Why does SKU removal drive sales?
It simplifies decision-making: Fewer choices reduce cognitive friction for buyers.
It sharpens marketing focus: Promos and digital assets can spotlight high-impact SKUs.
It enhances operational precision: From pick rates to cycle counting, every task gets easier.
It boosts trust: Customers get what they want, when they want it, with fewer errors or substitutions.
Of course, SKU removal must be strategic. Don’t just cut everything that’s not moving. Instead:
Look at margin contribution by SKU.
Assess how each SKU fits into your service model (e.g., does it drive bundle sales?).
Review client dependencies. If one SKU anchors a key account, find a transition plan.
:
More isn’t always better. In fact, in the world of glass, ceramics, and refractories distribution, too much choice can clog the pipeline. By carefully pruning your catalog, you create room to grow—more focused sales, stronger inventory control, and more satisfied customers. Done right, cutting SKUs is one of the most revenue-positive decisions you’ll make all year.
