There are many prototypes of products tested before they hit stores' shelves, but there is still no guarantee the new product will sell. The companies try to get the momentum going by getting news coverage. Word of mouth then becomes very important. Once one child has the toy, if the toy is a hit, the desire for other kids to have it grows. Joiner said because the company never knows whether the toy will be a hit or miss, shortages like that of Furby do occur.
Companies plan their manufacturing with realistic sales goals in mind.
The general rule when purchasing items like Furby that are hard to find this time of year is not to pay the premium price, Joiner said. After the holiday season, the product will be easier to find and probably cheaper. However, some parents don't want to disappoint their child at Christmas. If you need the toy by Dec. 25, you can't say don't pay the premium.