Imagine this …
A friend invites you to go shopping with him for a new laptop.
You’re not really in the mood to shop, but you haven’t seen this friend in a while so you agree to tag along.
While he’s busy chatting with a sales rep you take a look around and notice there’s a sale on smart speakers.
You’d actually been thinking about getting one of these speakers for some time now and it seems like a great deal.
A sales rep notices you admiring the speaker. “These speakers almost never go on sale,” he says. “And that’s a killer price.”
You nod in agreement.
He adds, “If you’re interested, I’d act fast. I think there’s only two left.”
At that exact moment, another shopper walks up and grabs one of the speakers. Now only one speaker remains.
What do you do?
In today’s edition of Why We Buy, we’re taking a look at Scarcity–the power of “not enough.”
Let’s get into it.
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The Psychology of Scarcity 🧠
Simply put, when an item has high demand and low supply, buyers will pay more to acquire that item. The fear of missing out (aka FOMO) on something we want pushes us to make decisions faster than if there was an unlimited supply.
But be warned: over-exposing your buyer to scarcity tactics could backfire if they feel pressured. Avoid being pushy.
Inside Your Buyer’s Mind 🧐
When a buyer is evaluating an offer, they’re also figuring out whether they need to make a decision now, or if it can wait.
When given the choice, buyers will prefer inaction over action because it requires no work on their end. Adding scarcity will trigger them to re-evaluate whether they can afford to wait, or risk missing out.
How To Apply This 🤑
Alright, so how can we apply this right now to sell more?
Offer Limited Quantities of Products
Take a lesson from high-end fashion brands that only produce a limited quantity of a product to increase the value. Numbering the items adds a nice touch by giving the buyer a sense of uniqueness. Create a story around this product launch to build hype and urgency.
Create Time-based Offers
Add a time constraint to your offer to encourage your buyers to take action NOW. Offer discounts, bonuses, or guarantees that expire after a set time.
Show How Many Are Left in Your Inventory
Amazon does this by saying that there are “only 3 left in stock” on nearly every product page. Whether this is true or not, it subtly hints that once they sell out you’ll never be able to get it again.
The Short of It 💥
The harder it is to get a hold of something, the more we want it. Fear of missing out is real and can persuade your buyer to take action instead of waiting. You can create urgency for your customer to buy now by either creating quantity-based or time-based scarcity.
Wanna really get inside your buyer’s head?
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