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Old 09-13-2006, 10:07 AM   #1
Peter Creath
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Question "Limited first run"?

I just saw the TiVo News announcement of the S3, and I noticed something interesting:

Quote:
P.S. It's a limited first run, so hurry -- snag one of your own before the holiday madness!"
So how does this interact with the limited-time lifetime transfer option, in which you have to purchase by 12/31 and activate by 1/31? What happens if they run out? How limited is the supply?
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Old 09-13-2006, 10:15 AM   #2
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Classic marketing psychology. Scarcity principle in action.
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Old 09-13-2006, 10:15 AM   #3
TiVotion
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"Limited First Run" is marketing-speak for "You better buy this now, because it won't be around if you don't!" which generally means, "buy this at it's highest price now, because we'll make more money on it than we will when we have to reduce the price in a few months after all the early adopters have drank the Kool Aid." The mindset you are supposed to adopt is that the S3 will be impossible to buy come the holidays (like the Xbox 360 gimmick).

They won't run out. You'll be able to buy "the hottest digital video recorder ever for the holiday season".

The only difference is, you'll pay less for it. I'm not worried one bit about lack of supply, and that's why I'm not buying one now.
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Old 09-13-2006, 10:17 AM   #4
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This makes complete sense. Order a short run, price it high so you have enough profit to order larger subsequent runs and thus better profit util you can eventually lower the price at retail. It took a long time for the Series 2 to become affordable so I wonder how long it will take this one.
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Old 09-13-2006, 02:52 PM   #5
Peter Creath
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I'm familiar with the usual marketing tactics of advertising something as in "limited supply", but I was curious how they would handle the VIP transfer if they actually did run out. (After all, various other products, like the PS3, due out before the holidays are predicted to be in genuinely limited quantities.)

Would they extend the activation deadline if you placed the order by 12/31 and they were out of stock? TiVoPony?
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Old 09-13-2006, 02:58 PM   #6
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Well it does say purchased by 12/31, and activated by 1/31. So I guess the only problem with them being backordered in December would be if you received it after 1/31.
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Old 09-13-2006, 03:05 PM   #7
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Quote:
Originally Posted by TiVotion
"buy this at it's highest price now, because we'll make more money on it than we will when we have to reduce the price in a few months after all the early adopters have drank the Kool Aid."

Yummy! TiVo Kool-aid is my favorite flavor!
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Old 09-14-2006, 03:33 AM   #8
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That's an EXCELLENT idea for a promo - like a tradeshow thing. Little packets of powdered drink mix with the TiVo guy on them. :-)
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Old 09-14-2006, 03:42 AM   #9
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Quote:
Originally Posted by TiVotion
The mindset you are supposed to adopt is that the S3 will be impossible to buy come the holidays (like the Xbox 360 gimmick).
Yeah that was a real gimmick, thats why anyone who didn't pre-order way in advance was scrouging around trying to get 360s until March!
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Old 09-14-2006, 05:42 AM   #10
tunnelengineer
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Quote:
Originally Posted by TiVotion
"Limited First Run" is marketing-speak for "You better buy this now, because it won't be around if you don't!" which generally means, "buy this at it's highest price now, because we'll make more money on it than we will when we have to reduce the price in a few months after all the early adopters have drank the Kool Aid." The mindset you are supposed to adopt is that the S3 will be impossible to buy come the holidays (like the Xbox 360 gimmick).

They won't run out. You'll be able to buy "the hottest digital video recorder ever for the holiday season".

The only difference is, you'll pay less for it. I'm not worried one bit about lack of supply, and that's why I'm not buying one now.
If you aren't buying one why do you have a S3 listed in your sig as of tomorrow (9/15)?
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