Unlike brands that flood the market and rely on markdowns, Norwegian Wool carefully controls its distribution channels and production quantities. This ensures a high percentage of items sell at full price, creating real margins and a "fear of missing out" that drives early-season sales.
Plant Material vets its hard-good suppliers based on their online pricing strategy. If a brand allows its products to be sold at wholesale prices directly to consumers online, the company won't carry them, proactively protecting its ability to compete and maintain retail margins.
Instead of discounting old inventory, Larroudé offers a pre-order discount on new collections, similar to an early-bird airline ticket. This "direct-to-demand" model incentivizes customers to commit early, which funds production, eliminates excess inventory risk, and improves the brand's cash flow and profitability.
Inspired by the "Mad Men" 'It's Toasted' pitch, Norwegian Wool markets its production processes, like letting fabric rest for a month. These details, often taken for granted internally, become powerful narrative tools that convey quality, craftsmanship, and a compelling story to customers.
Norwegian Wool avoids inflating prices just to offer discounts later. By maintaining price integrity, they build trust with customers who know they're paying the "real price." This prevents buyer's remorse and reinforces the brand's premium, high-value positioning.
Starbucks' limited-edition items, like a "bearista" cup selling for $500 on eBay, create massive hype through engineered scarcity. This strategy shows that for certain brands, limited-run physical goods can be a more potent marketing tool than the core product itself, fostering a collector's frenzy and a lucrative secondary market.
Peak Design's "omni-channel sandwich" strategy launches products to a small group of "get it first" Kickstarter backers, then sells them in retail stores at full price, and finally fulfills the bulk of "wait and save" Kickstarter orders. This pulls revenue forward and captures seasonal demand, despite risking backlash from some backers.
By eliminating seasonal colors to focus only on her bestseller—black—handbag brand Sonya Lee could place larger bulk leather orders. This allowed her to bypass wholesalers and source directly from a premium tannery, dramatically improving margins, ensuring material traceability, and making capital more efficient.
For premium retail brands, avoiding the temptation to discount is crucial. Lululemon's strategy to rarely offer sales, even when certain styles fall flat, demonstrates a focus on long-term brand preservation over short-term earnings boosts, a key positive indicator for investors.
Comfort strategically adjusts prices based on stock availability, not just demand. For fast-selling items, they increase the price to slow sales velocity, ensuring they stay in stock longer and avoid disappointing customers. This prioritizes long-term stability over short-term sales volume.
To avoid the operational chaos of viral success, Shelter Skin deliberately caps production to match what they can manufacture and ship themselves. This prevents them from overselling and allows for sustainable, bootstrapped growth, even if it means frustrating some customers with temporary stockouts.