In my last post I shared the things that can BLOCK YOUR WEALTH. Today, you’ll learn how to boost wealth using scarcity.
In your business, you want scarcity in your offerings not in the amount of profit. What does that mean? Maybe you've heard marketers use the words “sales limiter.” An example of a sales limiter is when a store says a certain deal is only available for a limited time. You need to make a purchase within a given timeframe to get the deal.
A sales limiter you’ve probably seen before is in the fast-food industry when a company offers a new or special sandwich or drink, but only until a certain date. Ex. The Cadbury Egg McFlurry at McDonald's is only available around Easter. Another one is when the Starbucks Pumpkin Spice Latte comes out in Fall, people go crazy!
The scarcity in demand for a product in your sales pushes people to make a purchasing decision. This is a good sales strategy.
Lucky for you there are many types of Sales limiters. Here are three of them:
1. Time Limiters
Imagine I said that this blog post was only going to be available until tomorrow. I bet you’d read the whole thing right away. Imagine I said I was doing a live online workshop and there wouldn’t be a recording available. More people would show up live so they wouldn’t miss out.
Limiters push people to take action right away: action with their time, money, and energy; especially if they’re on the fence about it.
If you had a free resource or download where people had to enter their email address to view it, and that download was only available for a limited amount of time after they signup, there’s a higher probability they’d open the email right away. If you let them view it forever, there’s a higher chance they won’t ever read it.
So, a limiter is putting a scarcity in either the timeline you can get something, the amount that you can get in a discount, or the number of people that can get it. Limiters are amazing for helping people make a decision in the buying process.
In any buying decision, people only have three choices: buy now, buy later, or buy never. When there is a limiter in place, they won’t be able to make the decision later because it will be gone. They need to choose to buy now or buy never.
2. Quantity Limiters
You can also do a limiter on the number of deals you have available. For example, the first 100 visitors to the store that day get a swag bag. Or there are limited quantities of the product in-store.
You've seen the craziness that happens when new Apple products are released. People line up for days because there is only a limited number of products available and they want to be one of the few to have one.
When I was younger it was the Cabbage Patch dolls. My mom queued to get me one of them at Christmas. She remembers it very clearly and so the doll actually had a higher value in her eyes.
When there is demand in the economy for a specific item, it creates its own scarcity and pushes you to run and buy it, or hoard it. It’s like the run to get toilet paper during COVID-19. People thought that it was going to be scarce, so they panicked and bought as much as they could. This was scarcity of quantity pushing people to feel the need to buy.
3. Limiters for Stage Offers
This also happens when you're doing an offer from the stage. You make your pitch and offer it at a discount for a certain amount of time or a fixed number of people. For example, the first five people will get a particular added bonus.
You can also add a limiter to those who buy the lower-end package or product. They don’t get the bonus unless they buy the bigger package or product.
There can also be specials when people pay for the whole package or product at once and not in installments. So, if they pay in full, they get a special bonus or add-on. Maybe free delivery or a dollar discount. This is how you can make scarcity work for you.
Don’t use scarcity to bully
Scarcity in your offers push the customer to make their buying decision quicker. A majority of the time this is fine. But not everyone likes this and some will buy and then regret their decision.
That’s why I suggest if you have a limiter, put a guarantee on it so people can pull out if they regret their decision later. This could be a 30-day money-back guarantee, for example. This way if someone feels that you’ve pushed them psychologically to make a decision that wasn't in alignment with them, then you can show integrity by allowing people, if they haven't consumed the product, to return their purchase.
So, flip your mind on scarcity to abundance. It will open up possibilities to help you move forward, in life and in business. And, when you're going to make an offer, don't feel nervous about creating a limiter in your sales. That just helps people to make their decision and you need to trust that if people don't want your product or service, then that will help them to make a very conscious “no” and walk away.
But if they do want the product, or if there is a piece of them that wants your product or service, the scarcity of the limiter will help them to make a more immediate decision. It will help you to work together and, if you’re working in integrity and you offer a great product or solution with your services, the outcome will be a great benefit to them.
It really is a win-win solution. It makes people jump and move to make their decision. Scarcity in your sales is good, but scarcity in your mindset is not. Make sure that you know the difference and that you’re in a place where you're making a conscious decision to use it in the right way for your business.
When you can use scarcity in the right way, you will help more people, boost your sales, and stop hindering your success.
Until we chat again, stay dynamic!
Scarcity will either block your wealth or boost your sales. It’s all in how you use scarcity in your business.
How is it that one concept can both hinder and help you? That’s what we’re going to look at over the next two weeks. In this article, I’ll share how a scarcity mindset can prevent you from reaching your full potential, then in the next post I’ll share how you can use it to boost your sales in an ethical way.
What kind of scarcity do you struggle with?
Where do you feel scarcity in your mindset?
What is it doing to you?
If you have a scarcity mindset in your business, you may believe that there aren’t enough clients to go around. Not enough money for everyone. What this ends up doing is putting you in a place where you don't feel your full value because you're constantly doing these things:
1. You get Comparitis: You're constantly comparing yourself to others. And so, rather than focusing on yourself and staying in your lane, you start looking at what other people are doing, what they’re saying, and what they’re selling. You’re pulled into a scarcity mindset that’s distracting you from what you do well and what you really need to focus on.
2. You get desperate: You don't feel like there are enough customers out there and to land these clients you drop your value and prices, thinking that will win you the sale. You get desperate and you think, “I’ve got to charge less for that. I can't really charge as much because there are not enough people out there. I just want people to buy in so I'm going to drop the pricing.” This thinking rarely serves you.
Before the next point, ask yourself:
3. Your ROI (Return On Investment) with your current money is limited: Scarcity mindset also restricts your behaviour, because chances are you're going to hold onto your money tighter. If you have scarcity in your business, you're going to hesitate or refuse to invest money in working with others to move your business forward. We know that investing in support to delegate tasks or hire employees can help you move your business forward, but if you’re not willing to invest in that help and you choose to do it all yourself, you’re going to get overwhelmed quickly.
That scarcity mindset is going to have you holding on super tight to every little penny that you make and that doesn't keep the world’s economy spinning at all. You're not going to think of it as “investing”, instead you're going to think, “That costs money. I'm spending money. I'm losing money. That money is going away.”
So now it’s super clear how the scarcity mindset is a really great way to block your business & personal success. You’ll compare yourself to others and it will make you devalue yourself. You will block your wealth in many ways and it will lead to you not investing in yourself and your business which is crucial for growth.
So, how can scarcity also be a good thing? I’ll cover this in the next blog.
Until then, stay dynamic!
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