Notes from a shop

1) You can only sell products that have value for your customers.

2) The price that something is sold at reflects the value to the customer, not the cost to you.

3) Sometimes when mistakes are made, losses must be taken.

There is no reason to stock products that your customer base is not interested in. High-ticket items, while cool, can be a waste of space and money. 5% of inventory for high-ticket stock is acceptable, and oftentimes good practice, but 40% of inventory is outrageous. Inventory distributions should roughly match sales distributions. The stock that constitutes 80% of sales should constitute 80% of inventory; likewise, stock that constitutes 5% of sales should constitute 5% of inventory. Fluctuations will, of course, occur, and adjustments may be necessary, but the percentages should roughly align.
Products that have little to no value for the customer should not be stocked; they will not be sold. Determining whether an item will have value to the customer requires good judgement. There is no substitute for good judgement.

Your costs do not create value for the customer.

When misjudgments occur, the item must still be sold. If the value to the customer is less than your cost, a loss must be taken.