Pre-order incentive

A pre-order is an order placed for an item that has not yet been released. The idea for pre-orders came because people found it hard to get popular items in stores because of their popularity. Companies then had the idea to allow customers to reserve their own personal copy before its release, which has been a huge success.

Pre-orders allow consumers to guarantee immediate shipment on release, manufacturers can gauge how much demand there will be and thus the size of initial production runs, and sellers can be assured of minimum sales. Additionally, high pre-order rates can be used to increase sales further.

Pre-order incentive, also known as pre-order bonus, is a marketing tactic in which a retailer or manufacturer/publisher of a product (usually a book or video game) encourages buyers to reserve a copy of the product at the store prior to its release.

Reasons vary, but typically, publishers wish to ensure strong initial sales for a product, and the offered incentive is used to induce shoppers who might otherwise wait for positive reviews or a specific shopping period, like the holiday season, to commit to a purchase. Having paid for part or all of the purchase when placing the order, the consumers will usually complete the transaction shortly after the product's release, often on its first day in stores. Individual stores or retail chains may also offer bonuses for a popularly anticipated product to ensure that the customer chooses to buy at that location, rather than from a competitor.

The pre-order bonus may be as simple as a discount on the item's purchase price or other related merchandise, another marketing strategy, or it may be an actual item or set of items. The items may be related merchandise or exclusive items available only through the pre-order program.

Until around 2000, the primary distribution method for video games were through physical media such as CD-ROMs, DVDs, or game cartridges, including packaging and instruction manuals. Preparing enough copies for vendors to purchase and sell to consumers on the release day required a significant amount of market forecasting. Episodes in the industry's past, such as the 1983 video game crash, had made publishers wary of producing in great excess to avoid the situation that led to the Atari video game burial. On the other hand, having too few copies available at the game's launch can lead to consumer dissatisfaction.

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