Polygyan | Why toy sellers undersupply during peak demand!
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Why toy sellers undersupply during peak demand!

Why toy sellers undersupply during peak demand!

#Psychology #Behavioural Science & #Persuasion

A recurring problem that a lot of toy manufacturers face is low sales for 2–3 months after a festival. Parents buy their kids a ton of new toys during Christmas or Diwali, and aren’t ready to spend more on toys for the next 2–3 months. Hence the toy sales naturally observe a slump. But toy companies have come up with a very smart tactic to counter this effect — A mix of ‘artificial scarcity’ & the psychological effect of ‘indebtness’.

Running up to Christmas, they heavily publicise a particular toy all over TV, Social media & Newspapers. Their aim is to make the kids really want that particular toy. The kids naturally then pester their parents for this toy. The parents promise them that they would buy it for Christmas. Or buy it soon. But these toy manufacturers undersupply the stores with that toy to create an artificial scarcity! Why? Because when the parents can’t find it, they are forced to buy some other toy to pacify their kids. They had promised their kids that special toy, so this substitute has to be of a similarly high value. This helps companies move their other products.

But the kids don’t forget so easily. Plus the companies start running the ads again for that special toy once Christmas is over. It isn’t any toy, it is the hottest toy at the moment. So the kids go running back to their parents, reminding them of their promise. The parents feel ‘indebted’ because of this promise, go to the store and guess what! The special toy is available! This way the toy manufacturers are able to sustain the festive high demand for toys even 1–2 months after the festive season is over.

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