Limited Time Offers Pull in Sales

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Playing hard to get can be an effective ploy in the dating game. Staying just a little out of reach or being unavailable can make a person more mysterious and desirable. Limited availability seems to work in the sales game, too.  That’s what many retailers are finding out by making some of their products seasonal. 

 

Time Magazine’s story, “Shamrock Shake Alert: Why We So Love Those Limited-Time Offers,” reported on several limited time offers and the companies that offer them. The title Shamrock Shake is offered by McDonalds only around St. Patrick’s Day. Are they really that tasty? Maybe not, but if you want something different, fun and part of the St. Patrick’s Day festivities, you have to get one in the limited time they are offered.

 

McDonalds McRib sandwiches are like the Brigadoon of fast food specialty sandwiches, appearing on the menu for a short time and then disappearing, only to reappear again at another time. LTOs are often geared towards holidays or special celebrations, like Father’s Day, Mardi Gras, Valentine’s Day. More and more companies use them for the simple reason that they work.

 

Could it be that consumers are really bored with the availability of just about everything that’s for sale? Why buy sheets and towels in January? Why? Because January is traditionally White Sale month. It’s the time of year people have been conditioned to flock to white sales, looking for a wide selection and low prices. Linens have little to do with the month of January other than a tradition that has been established—one that says you replenish your towels and sheets at the January White Sale sales.

 

These traditional LTOs become so much a part of holidays, times of the year or family traditions that the occasion isn’t the same without them. The closer you get to Thanksgiving, the more pumpkin, cloves, apple cider and other spices find their way into smoothies, shakes, cakes, donuts and of course, the traditional pumpkin pie. Even turkeys could be considered LTOs, and ones with great success. Just about everyone has to have one for Thanksgiving. Stores sell out fast, even though many families never eat turkey any other time of the year.

 

If companies want to boost sales, they can’t always add new products. But they can take familiar products and make them fit the holidays. Take men’s ties. While men’s fashions don’t vary a lot with style and color, ties are the way to make a statement. And they are so easily adaptable to the season or holiday. A man can wear the same suit and change his whole image just by wearing a tie with shamrocks for St. Patrick’s Day, reindeer on Christmas and Easter eggs and bunny rabbits for Easter. But if you want one of these LTOs, you have to get them before they’re gone or the holiday is over.

 

Besides being part of a holiday celebration, LTOs are a way to give permission to indulge. Sexy, silky lingerie, diamonds or long-stemmed roses for Valentine’s Day. People who wouldn’t spend $100 on flowers don’t think twice about plunking down the cash for a bouquet to show their love on Valentine’s Day. Give people a reason and add the urgency of limited availability and you’ve got a great combination to boost sales.

 

The ultimate LTOs are products that are being discontinued. When Hostess stopped making Twinkies, people who would have never eaten that combination of sponge cake and crème filling stormed the stores and bought boxes of them, merely because they wouldn’t be in the stores anymore. Perhaps the ultimate sales tactic would be to cycle products in and out, instead of having them displayed year after year. Unlimited availability can be boring. But a Limited Time Offer peaks interest and action.

 

Photo Courtesy of Freestockphotos.com/Dreamstime

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