The Definitive Guide to Business with Marcus Lemonis

Marcus Lemonis: Why your product isn't selling — and what to do about it

When you're selling products in retail stores, it's critical that they are visible to customers.

That makes securing prime shelf space top priority.

"The better the positioning, the better the product is selling," said turnaround king Marcus Lemonis on the latest episode of CNBC's "The Profit."

When Lemonis accompanied Max Kater, CEO of Murchison-Hume, to a local branch of The Container Store in Los Angeles, he noticed her fleet of non-toxic cleaning products wasn't placed well. The store was dedicating one shelf, second from the bottom, to Murchison-Hume.

Murchison-Hume’s cleaning products have been selling sluggishly on shelves at The Container Store. Due to problems with branding and price, the products have been placed on bottom-level shelves.
CNBC
Murchison-Hume’s cleaning products have been selling sluggishly on shelves at The Container Store. Due to problems with branding and price, the products have been placed on bottom-level shelves.

"I'm guessing it's there because of the actual sales results that exist and that's a function of the price, the branding, the messaging — all the things we need to fix," Lemonis explained to Kater.

Last year, Kater's company lost $477,000. It was struggling with brand identity and offering too many different kinds of products.

"What we need to make sure is that we narrow the products down to whatever's going to give [The Container Store] the fastest turn and the greatest margin," Lemonis advised.

Making such improvements on the product be it price, messaging, or product offering — can bring a product from a C position down at the bottom of the shelf to an A position right at eye level.

And that is a win-win for the business providing the product and the retail store selling it.