We all want what we can’t have. And we flaunt when we have something others don’t. That’s why zealous Apple fans camp overnight at Apple stores around the world before major iPhone launches. It’s also why certain fashion brands charge tens of thousands of dollars for women’s purses that should cost significantly less. The “fear of missing out” (FOMO) causes consumers to behave in irrational, unpredictable ways. And it doesn’t hurt that scarcity typically creates lots of buzz around a product. In today’s media-intensive culture, buzz can create virality and give your product or service a huge marketing boost. While economics may lay down the foundational laws of supply and demand, marketing can use scarcity to manipulate the variables and win big. Smart marketers and business owners control both variables. That gives them an unfair advantage of influence over pricing and profit margins. Here’s how you can level the playing field and get the same advantage for your business, using scarcity marketing techniques. What is scarcity marketing? Scarcity marketing is a marketing technique based on the principle that people want what is difficult to get. Scarcity is one of Dr. Robert B. Ciadini’s “6 Principles of Influence”. Read about some of the other principles in our prior articles on why your business can die without social proof and how you can use commitment and consistency principles to increase sales. The psychology of scarcity The psychology of scarcity was famously tested in 1975. Researchers Worchel, Lee, and Adewole wanted to determine desire based on scarcity. Their experiment was simple: They placed two replica cookie jars side by side. They filled one jar with many cookies and the other with only two. The question: Which cookie would people value more? Ultimately, the cookie jar with only two cookies was rated as more desirable simply due to their scarcity. Examples of businesses that excel with scarcity marketing Kylie Jenner is the queen of scarcity marketing with her business, Kylie Cosmetics ($900 million). As we previously mentioned, Consider Kylie Jenner, child celebrity turned billionaire. Kylie has a makeup line that promotes exclusivity. She manufactures a limited supply of her makeup collections – to her benefit. The concept of, “limited offers” serves as an exclusive one time only feeling that fans use to think of “now or never”. A simple eBay search on Kylie Jenner reveals products being sold for over roughly three times the original selling price. Exclusivity is working for Kylie. Kylie fuels demand with exclusive Instagram promotions, limited and holiday edition products, and pop-up stores around the United States. It doesn’t take an individual influencer like Kylie Jenner to fuel demand. Even big brands can generate excitement around scarcity. Consider the popular coffee chain Starbucks. Starbucks has positioned itself as the preferred coffee shop. But it wasn’t the coffee that triggered serious FOMO (fear of missing out) in 2017. Let’s get reacquainted with their mythical drink that caused the world to flock to every Starbucks in a 5-mile radius. Introduced on Instagram, this colorful..
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