If a company can convince a bunch people to pre-order a product, and hence shift some of the production and inventory risk onto their consumers, why wouldn't they?
If a company can convince a bunch people to pre-order a product, and hence shift some of the production and inventory risk onto their consumers, why wouldn't they?
Also, pre-ordering, an indication of demand, can place a company in a better position with suppliers in securing needed materials & parts for production.
His body's not a canvas, and he wasn't raised by apes.
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If you actually have confidence in your design and your product, you build it and they will come. If you don’t, your product is probably not offering something better that what is already out there and you are just jumping on the bandwagon to cut into the market.
I think a better idea would be to do a loaner trip where people get to hear the product and sign up if they like it. Some have done this. Or build on demand. Nectar can make you one over the weekend.
Imagine a TV producer doing a ‘pre-order’ for a Breaking Bad type series so he can hire actors and directors.
I guess it just indicates that there are way too many choices yet people still want more.
To be clear, I'm not saying I like the whole dynamic around pre-orders or that I'm defending the practice. I'm just pointing out that from a corporate finance and accounting perspective, it's a no-brainer if you have the option. And the evidence is abundantly clear that in the emotion-driven world of audiophile gear, they have that option.
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