First Stop In-N-Out: How Limiting Your Product Boosts Profits

The first stop many people make when the head to or from LAX is the nearby In-N-Out. It’s one of the busiest location of the much-loved burger chain.

One of the reasons the brand is so popular is that you cannot get it everywhere. There are only 300-some locations in six states: California where it started, Nevada, Utah, Arizona and now Texas and Oregon.

Why? They are a hit! Why not expand like mad?

A practical answer is each product is made with only fresh ingredients. There are no freezers, heat lamps or microwaves. So stores must be within 300 miles of a distribution center.

A subtler answer is the owner knows limited availability drives up demand. Part of In-N-Out’s appeal is it is only located in limited areas.

Similarly, when Steve Jobs first came back to Apple, he eliminated 80 percent of the product line. When River Pools and Spas set a goal of becoming the best teachers in the world on the topic of fiberglass pools, and nothing else, their business took off.

Look for areas you can limit your offerings and product lines. It will help you focus and drive up demand at the same time.