What’s the Deal With Pre-Orders?

How pre-orders can help small businesses grow

You have probably heard of the term “pre-order” as writers, information technology companies, and other companies that have a considerable following from customers around the globe markets their new publications, products, or services before the actual launch. To many, placing an order on such items is the best way to ensure that they are guaranteed immediate shipment on release. Hence, they have the privilege of being one of the first groups to use them and prevent instances where the items run out before they have purchased them. However, it is not common for people to think that pre-orders can help small businesses grow. The following is how this is possible.

Accurate Sell Predictions

One of the challenges that face small businesses striving to grow is the need to ensure that they optimize all of their processes to avoid unnecessary losses. Such a business ought to know precisely how much to invest in each of its business operation segments. Requiring customers to place pre-orders is one way of achieving leanness in business operation because it gives the company a clear record of the demand size. As a result, the initial capital size to be allocated for the initial production runs is well optimized. Through pre-orders, a business can produce products or services on demand, reducing the cost of inventories and over-production.

Effective Marketing Strategy

Marketing is a challenging process, yet it is one methodology that a small business can use to its advantage a beat seemingly bigger companies if it is well utilized. One way of doing so is making good use of pre-order incentives or pre-order bonuses. This can be as simple as lowering the commodity price just before it is released to encourage more people to reserve their copy. This strategy can be made more effective by reducing the cost and requiring only a fraction of the total price to make the reservation. This will encourage many people to pre-order the product and complete their transaction shortly after releasing the product because they have already paid for part of it.

As given by the economic principles that relate price to demand, the tactic is good enough to ensure a robust initial sale of a product or service. It is also useful in encouraging further sales after the release as those customers who love to wait for positive reviews from people who have ever used a product or a service before they decide to purchase it develop faith in the brand. It is nevertheless an excellent tactic to enable a small business to raise enough capital for further productions or other reinvestments to ensure a smooth continuous flow of operations. As a result, it is an excellent methodology for spreading the brand of a new business.


With a good application of creativity, the idea for pre-orders can benefit small businesses in a big way. It can increase operation efficiency, hence encouraging leanness and smart investment and work as a good marketing strategy. However, it is critical to combine it with honesty, reliability, and quality to ensure that the population having faith and trust in the brand keeps increasing.

Share on facebook
Share on twitter
Share on linkedin

Follow Us

Subscribe to Newsletter