Glossary · Product
What is Pre-Sale?
Definition
A pre-sale is selling a product before it is fully made or stocked, to prove demand and fund production.
Why it matters
Pre-selling flips the usual order: you collect money first, then build. It tells you whether people will actually pay, which is a stronger signal than survey answers.
A founder designs a canvas tote and opens pre-orders at $32 with a 4-week delivery estimate. If 85 people order, she has $2,720 in hand to pay a manufacturer whose 100-unit run costs $1,300, and she knows demand is real before committing. If only 6 order, she can refund them and adjust, losing almost nothing.
Be honest about timelines and keep your promises. In the US, rules about shipping delays and refunds can apply to pre-orders, so check the details with an attorney or your payment processor.
Common mistakes
- !Spending pre-order money on other expenses and then being unable to deliver.
- !Setting delivery dates too aggressively and disappointing customers.
Frequently asked questions
What is Pre-Sale?
A pre-sale is selling a product before it is fully made or stocked, to prove demand and fund production.
What mistakes do beginners make with Pre-Sale?
Spending pre-order money on other expenses and then being unable to deliver. Setting delivery dates too aggressively and disappointing customers.
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