Firstly, what is pre-ordering?
Put simply and briefly pre-ordering is where your business places an order for an item prior to its release in the market.
It is a widely used practice these days by companies large and small who sell to retailers and even those that sell directly to the public. Their aim is simply to attract more consumers while allowing them to study the demand for their products. Doing this before releasing them into the market makes great economic sense.
Why is pre-order popular with purchasers?
Pre-orders have gradually gained in popularity amongst buyers over the last few years. It allows them to book their own order and delivery of the product well in advance. That means that when it is released, there is an assurance that they will get it at the price they secured it!
Usually, it is a fruitful practice for ordering popular items that you know will be off the shelf as soon as they are released. This has been particularly popular in areas such as:
- top-ranking video games,
- new books by famous authors l
- new mobile handsets
- new mobile and laptop accessories
Secondly, pre-orders have gained popularity because the companies will often offer heavy discounts. If no discount is being offered, they may sweeten the deal with extra goodies when you order the item in advance. This ensures that it is a win-win situation for all.
- The manufacturer has advance orders
- The retailers secure in-demand products,
- The buyers can access their new stuff easily and quickly.
What are some other Advantages of Pre-orders?
Predict Product Demand
Another way pre-ordering can be used to your advantage is to gauge costumer interest in a particular product. Rather than ordering a large quantity of stock with the potential to become dead stock, you can offer a limited pre order. In doing so, if customers are no longer interested you don’t waste money purchasing safety stock.
Pre orders also allow for you to create a revenue while products are on backorder. This will eventually help you calculate the optimal reorder point going forward.
Create Opportunities
It is always good to grab the products that you want as quickly as you are able too. It is not unusual that only a few or a very limited stock is specifically allocated for pre-orders.
Both, retailers and consumers have to be on the lookout and buy the things they need as soon as pre-ordering gets started. When you begin the pre-ordering process for the first time you may find that there are larger variety of products and more of them, this creates opportunities for more sales, more customers and more interest. If you don’t you may find yourself missing out on the opportunity.
However, one of the biggest advantages of pre-ordering is the fact that you lock in a price. In some cases, it may occur that upon release of a product a manufacturer increases the price. If you have pre-ordered then you will not be adversely affected by that price increase.
How Can Mobile Source Group help You?
We have access to the product that you want and by using our buying power you can stay one step ahead of your competitors! Our network is vast and extends internationally so you know you are in great hands when you work with us to source your product!
Please reach out to us to discuss your needs and how we can help. We can talk you through the process of pre-ordering and will make the whole experience as smooth as we can. You can email us at sales@mobilesourcegroup.com or telephone 07 3139 1559.
