So there is a new cell phone provider coming into the market here and it is getting a lot of press as it is essentially competition in the market that has revolved around three companies mostly. Of course, there are line ups and such already at stores for people who want to switch. The funny thing was how some people suggested that these people lining up are simply bodies that were hired by the company to create a sense of buzz.

I have actually seen companies do this many times as in many cases it does work to a certain extent. It just opens up a lot of viral possibilities such as creating line ups so long that people will say take pictures and begin to report about it. Although I personally think there are better ways to do it such as simply trying to run contests to draw more people. Especially when it comes to new product launches even something mundane such as the first five people in line get a free item can usually attract a large crowd on its own.

I was just reading about this online sale that a large company was implementing where it was selling various items at a huge discount. To add to the suspense you won’t know what is going to be on sale until the last minute. Therefore, you have everyone scattering at the last minute which creates buzz. While they are definitely good deals, the stock quantity is extremely limited. Example, imagine buying a $1000 TV that is on sale for $500 and they only have one available for sale.

Usually companies do this simply for exposure. Especially those that want you to sign up for say a newsletter to do so. I know many times people would ask how they can afford to lose that much money selling the product even if it is for exposure. For that point, just think of how much say a traditional TV ad can cost.

Let’s be nice and say it is $20,000 for a 30 second TV spot. So like with the TV let’s pretend it has to sell for a thousand just for you to break even. Instead, for this promotion you sell it for $200. Assuming we are using the $20,000 example that you would have normally spent for advertising, instead you now sell 25 of those TV’s for $200 which means a $20,000 loss. Considering every other place sells it for $1000+, you can imagine the buzz and word of mouth advertising that could be generated this way.

In many ways you can consider these as loss leaders too. But a lot of times as a consumer when I see companies offer these types of promotion with such limited quantities I am not exactly going to spend all day hoping to get one at that low price as it is almost like winning the lottery. In so many cases too usually someone on the inside gives away the information ahead of time to friends and family members who end up getting it first too as well. Time better spent making more money I’d say.

I was talking to some people recently who wanted to make a feature film and one person was complaining that he had no money and resources to do it. Another person then commented how that was a bad way of thinking. He mentioned about this real story apparently about a person who actually used his cell phone to record the video and in turn made it into a feature film that got a lot of attention. That was even surprising for me to hear.

At the same time, that sure showed how there really is no excuse if you really want to do something and at the same time doing something with very little money can actually be good too. I always found that you will be judged differently if people know how little money or resources that you used to make an idea come to life. It’s just a matter of getting pass that thought that you need or have to do things the same as everyone else.

You can save money and at the same time be an innovator that establishes your own market as oppose to trying to fight over a piece of the pie. Ever notice too that in success stories people often love to say how little money and resources they had when starting out just to make it big afterwards? It’s not as compelling if the person say came from a rich family right? Learning to use that novelty in your growth stages can definitely be something that you can embrace to gain support and recognition for your venture.