Less Is More – The Law Of Scarcity

We are heading towards the home straight. Since we started covering Robert Cialdini’s Weapons of Influence so far we covered The law Of Reciprocity, The Law Of Social Proof , The Law Of Authority and  The Law of Commitment and Consistency. Today we cover The Law Of Scarcity, I love this one it has such amazing power of the consumer mind.

We have evidence every day of people wanting what they can’t have or wanting items that are limited in supply. They will line up and pay whatever it takes to get it. Think about Apple product launches or special sporting or concert tickets. Remember the Boxing Day sales how thousands of people were waiting outside the department stores so they don’t miss out?

Things seem more valuable to us when the availability is limited or it may run out. The idea of potential loss plays a big part in human decision-making. People feel compelled to make a decision more quickly if they think they will miss out.

There are many companies that do this well like Apple and Zara. I know if I see something I like I must buy it then because when I go back in one or two weeks it won’t be there or my size won’t be there. They have us well trained. Most other stores have trained their customers to wait, why buy it now when you can get it on sale. It will still be there.

Apple devotees cannot bear to miss out. I woke up at 6 am to get to the Telstra store by 7 am so I could wait in line for the new iPhone.  We were entertained but still stood in line until it was time to proceed. Now there is an important fact that I must divulge I do not line up for anything, if I need to wait I go without. Nothing is worth lining up or is it? Has Steve Jobs brainwashed us? Does Apple have some power over us we didn’t know about?  Ahh.. The power of marketing and scarcity!!!

 The scarcity principal can be quantity or time based.  We find that when our freedom to have something is limited and the item becomes less available we experience an increased desire for it. We don’t know, why we just want it and then go ahead and justify why we must have it by assigning positive qualities.

The less available an item it is always more desired and more valuable. What happens is a physical agitation sets in the blood comes up the focus narrows and the emotions rise the rational side retreats and the emotional side takes over.

 Some ways retailers can use scarcity:

1. Buy now and avoid the price rise.

2. Auction items, the thought of losing the item gets you to bid amounts of money you never intended and you want to win.

3. It is not enough to just tell them about the benefits, you must tell them what’s unique about your product and what they stand to lose if they don’t act quickly.

4. Buy smaller quantities and have more cycles than two. Revolve your stock evenly through the month.

5. Have a promotion with a limited time frame or limited stock. The first 50 visitors to the store or website or press like on Facebook get (insert your product here)

6. Launch parties are a great way to get people to buy more, this works for many of the other persuasion principles as well. Consumers want to be seen to be buying this triggers the social proof and consistency trigger and then others don’t want to feel they are missing out so they purchase as well.

7. Buy in limited items and your clients can schedule an appointment to view & buy product. You could schedule your clients quite close to get a heightened fear of missing out.

 Have you got any other ideas what have you done previously?