How to Limit Quantity as a Marketing Strategy
A marketing strategy is a plan to boost interest in a product or service and ultimately the profitability of a business. One marketing strategy is to limit available quantities of a product when it is first released. The goal is to make buyers desperate to grab the product before it sells out. It is a risky marketing strategy but in some cases can effectively increase short-term demand.
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Instructions
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Estimate normal sales demand for the new product release. You can base this on your past sales levels of similar products or look at the sales reports from similar companies who have released similar products in the industry.
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Discount the normal sales level by a deep percentage to determine an available sales quantity to advertise as a part of your marketing strategy. You can base this percentage on your initial inventory or manufacturing order or simply select a random number, such as 50 percent of the first month's forecasted orders. For instance, if you estimate that a product would normally sell 1,000 units in the first month after release, you can advertise 500 units for sale.
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Add the news of your limited available units for sale to your marketing materials, including your website, fliers, email newsletters and print ads. For instance, you can advertise "500 Widgets Available -- First Come First Serve." As an alternative, if you don't want to advertise the exact stock available you can simply state "Limited Quantities" or "While Supplies Last."
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Notify customers in emails or on your website when the limited quantity you set has completely sold out. Provide customers with information on how they can place themselves on a waiting list or how to place an order in advance until more products are available for sale.
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Tips & Warnings
Do not keep customers waiting more than a month or two for more stock to be available, or you could lose their interest.
