Economic theory tells us that price plays an important role in determining demand for goods and services. When prices fall, demand rises. Demand curves, therefore, typically slope downward. Thus, discount vouchers (in the private sector) and subsidies (in the public sector) are popular, evidence–backed mechanisms for reducing consumer prices and promoting demand—and in particular, expanding the use of quality inputs and other agricultural technologies among smallholder farmers.
Yet lowering prices via discount or subsidy is only one factor influencing the successful, consistent use of such products—in particular, the timing of take-up can be crucial. Seeds, fertilizer, pesticides, etc. often need to be applied within specific and narrow time windows to maximize their benefits. If new agricultural inputs don’t perform well, then farmers may forgo purchasing them in the future. Thus, the success of both private and public sector efforts to stimulate demand may depend not only on if potential consumers purchase a product but also on when they purchase and use it.