How many times have you decided to buy something because you saw that there were only ‘3 left’? This is known as scarcity marketing and it is very effective. If you’re an Amazon shopper, you’ll recall seeing this type of marketing all over the site.
The principle behind this type of marketing is known as supply and demand. If your product is seen as being in limited supply, it immediately has a higher value. Buyers are driven by the mentality of missing out since it is in high demand. After all, who doesn’t want the latest, coolest thing-a-ma-bob that everyone else has? As a service, the scarcity idea is that the person providing it is in high demand and has limited spaces available. This raises the value of those appointments.
In order for this to work effectively your offer has to be positioned correctly. Keep in mind, the end goal is to boost the desire of your customer to purchase your product or service. By positioning your products with scarcity you are giving it more perceived value immediately. You need to show that you had tons of this product in stock and due to popular demand you only have X number left. Even coaches and service providers can use scarcity. Coaches will often say that they’re opening the doors for limited bookings and since time is scarce, the coach can easily say they only have ‘x’ number of appointments available. Other service oriented offerings will put people on a waiting list before they can gain entry to a membership.
Scarcity can be presented in different ways. One tactic that many online marketers use for selling digital products is to use what is known as a dime sale. This is when they run a sale where the price increases a set amount after a certain number of sales.
When visitors arrive on the sales page they will be shown a note that says “only 2 left at this price”. This adds scarcity to the offer and if they are interested they will hit that buy button faster to get the lower price. Another example of adding scarcity is to remind your customers that you only have a certain number of this item left in stock. This could apply to physical items, digital items or even to ticket sales, if you are selling tickets to an event.
Successful marketers will often add scarcity into an offer by including a specific date. Stating that the price will increase to X amount by a certain date can be extremely effective. This helps to get those who are borderline shoppers and helps to turn them into an actual buyer.
Adding scarcity is a marketing technique than can really help increase your bottom line. If you haven’t tried this tactic yet maybe it is time you did. Depending on whether you are selling a physical product or a service, you can try different techniques to raise your scarcity. As with all marketing tactics, we are not trying to fool or trick anyone. Time is limited and quantities are always limited. Don’t say there are only three items left if you have a full warehouse. But if you’re down to the last 10% of your inventory, you can say that. We are merely trying to get people to act on something they already need or desire.