I know there are plenty of ways to manipulate wait-list numbers and sales figures but I learned something today that I didn’t know. I’m definitely doing a long stare at one well-known chain, here.
So, when you read that a product has sold out in 2 hours, or one day or any other seemingly incredible time span, which of course, makes you immediately want one, it could be because there were only ever a few in stock. And, what’s more, brands have to pay for the privilege of having almost no stock so that they can claim a miracle sell-out. If they have larger units of stock, the brands don’t pay anything because they won’t get a super-fast sell out claim.
It’s even been known for certain brands to buy their own stock from a website – a good investment for them if they can then tag the product with No.1 Best Seller or similar. It’s how some brands make the ‘one sold every minute type claim.’
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Who knew?! Honestly, sometimes the beauty industry is just embarassing.
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14 comments
*Cough* MAC *Cough*
I always suspected that sometimes companies make to little of a certain product to sell out, but I had no idea about a brand buying its own products.
That is so weird and it makes you wonder at how big are their margins if they can afford to do this just for marketing purposes.
I recently took an econ class and learned that sometimes, producers lose money when they make enough for all consumers. The refrain “but they’d make more money if they sell more” isn’t in fact true because there is an ideal quantity point for most goods. Having said that, the hype hype hype factor is something completely different. The micro-release leaves a bad taste in consumer’s mouths and it gets very wearing if it happens too much.
It’s like the girl who cried wolf.
I think this is what Victoria Beckham does with her clothes as well, if not now then certainly when she launched the line. She’d only make a tiny amount of everything so it could be a guaranteed sell-out.
Ha, yes Kathrine, I was going to say I’m sure it’s not just a beauty industry thing. There was the time those super expensive VB bags sold out on a well known ecom site and the rumour was that they’d only bought two. I guess brands could always buy them and then return them. What a faff!
As for the supply/demand sweet spot. Two words: Hermes Birkin!
Suddenly those MAC online only launches that sellout within two hours of being up make sense. Although they’re still really annoying!
I think that this strategy backfires and creates bad will towards the brand. If you get a customer’s attention but then fail to follow through and make the product available why should the customer continue to be interested.
As MAC has been mentioned already. I still get MAC emails but haven’t opened one for over a year because the good stuff has always sold out by the time I get to a counter. Navabi are currently annoying me to the point when I may not bother with them because the really pretty pieces that they highlight in their emails sell out before I can order.
:O Its totally annoying as well! I dont bother any more there is too many lovely brands and too much choice to be loyal to one or care about their selling claims. Sold out? Ill just go elsewhere… xo
Aforementioned brand doesn’t happen to begin with M and end with AC does it! The reality is we all just want cute lipstick or pretty blushes to wear and add to our collections, & it’s beyond frustrating when the same items are on Ebay for 3x the price a few days later. Why cause so much frustration?!
http://beckyalyssasbeautybox.wordpress.com
Lots of people have mentioned that brand… but it wasn’t the one had in mind!
This time last week everyone was getting excited about the Banana Republic and Roland Mouret Collaboration collection, a week on and there’s no coverage, not even an article in the Daily Mail about how the dresses are selling (or not) on ebay. It seems like the whole thing has been forgotten – the collection sold out quickly but there is no lasting buzz.
It just seems silly to me – surely the end game is selling lots of products, not just creating a tonne of hype for something nobody can actually get their hands on to purchase? So odd. Interesting that eveyone’s mentioning MAC – I know that’s not the brand Jane was alluding to, but for me, the fact that their collections sell out so quickly has totally put me off. I hardly even look at the new collections because I know by the time I’ve decided what I want and had a chance to swatch it, I probably won’t be able to get it anyway, so I don’t bother and spend my money on more available products. Great thought-provoking post Jane 🙂
Gem x | flutter and sparkle
Now I’m eager to know who! Either way, what a blog post!! I’ve never thought about this concept before!
Stephanie
http://missstephanieusher.blogspot.co.uk/
http://www.bloglovin.com/blog/3436251
xxxx
Every brand does this to a degree, but I want yo put Boots into the mix. However the sales reps spinning a few lies don’t help – went to YSL yesterday to get colour matched for sample and they asked for my detals, “as we are running low on stock” but my eagle eyed friend spotted he still had 5 boxes worth!