A critical component of a well-established business is a loyal customer base. Whether a company is introducing a new version of a flagship product or an entirely new line, the success of the company’s product is ultimately dependent upon how well it is received by customers.
In many cases, brands or companies will create excitement around a product before its official launch by pre-selling items. This serves as a reliable business tactic, allowing companies to generate revenue which can be used for subsequent production and product testing. Thus, advance sales can aid with creating buzz around a product but make it all-the-more important that customer satisfaction is fulfilled.
One consideration with pre-selling products, therefore, is the degree of risk that exists with selling products which are not yet available to ship. Fortunately, there are proactive steps a company can take to mitigate such risks while profitably marketing a unique product.
Include Protective Language in Listings
Typically, product pre-sales occur on either company websites or through a crowdfunding source. Regardless of which platform an organization employs, the inclusion of the correct wording is of great importance. A company must ensure that it is undoubtedly clear to customers that the product in question is not presently in stock, and that it will ship at a later date.
In order to protect a business from an influx of negative reviews and refund requests, it is beneficial to provide a range of potential delivery dates. That way, customers do not develop unrealistic expectations surrounding a product’s arrival time. In addition, it may prove favorable to a company to disclose to customers what factors play into such unpredictability. Whether the reason for it is quality control testing or order volume, customers will appreciate transparency offered by a company they are giving business to.
Prepare Products for Production Runs
When strategizing for a pre-sale campaign, the greatest mistakes companies make involve underestimating the time that each stage of the manufacturing process will take. This is especially true in crowdsourcing scenarios where new concepts and designs are incorporated.
Out of caution, a business should only begin to actively market a pre-sale product once product testing has been completed and manufacturing arrangements have been secured. Otherwise, production costs could fluctuate after orders have already been accepted and yet again, the company could face delays in delivering the product to customers. The greater the amount of pre-sales a company makes, the greater the impact of delays will be.
Companies working with offshore manufacturers may need to take further action to ensure manufacturers are held accountable in the event of a breach, as well. In particular, such companies should inquire about the necessary steps to avoid intellectual property infringement.
Overall, there are several factors to take into consideration when a growing business wants to pre-sell a product. Hiring legal support to review the risks involved in the process can help the company mitigate liability and reduce challenges in the later product launch. For more information, contact Arnett Law Group, LLC, at (312) 561-5660 or visit our website at www.arnettlawgroup.com.
