The scarcity principle is a psychological phenomenon that states that people desire things more when they are scarce or difficult to obtain. This is because scarcity creates a sense of urgency and makes people feel like they need to act quickly to avoid losing out on an opportunity.
Marketers have been using the scarcity principle for centuries to increase demand for their products and services. Here are seven examples of brands that have used the scarcity principle to great effect:
1. Nike
Nike is known for its limited-edition sneaker releases. Nike often creates hype around these releases by announcing them weeks or even months in advance. This gives people time to save up for the sneakers and build up their anticipation. Nike also releases a limited number of each sneaker, which creates a sense of scarcity and makes people feel like they need to buy the sneakers quickly or they will miss out.
2. Apple
Apple is another brand that is known for its limited-edition product releases. For example, when Apple releases a new iPhone, it typically sells out within minutes. This is because Apple creates a sense of scarcity by only releasing a limited number of iPhones at first. Apple also uses marketing tactics such as pre-orders and product announcements to build up anticipation for its new products.
3. Louis Vuitton
Louis Vuitton is a luxury fashion brand that is known for its exclusive products. Louis Vuitton often creates limited-edition products and collaborations with other brands. This creates a sense of scarcity and makes people feel like they need to buy Louis Vuitton products quickly or they will miss out.
4. Disney
Disney is known for its limited-time events and attractions. For example, Disney often releases limited-edition merchandise and food items for its theme parks. Disney also has limited-time attractions, such as Star Wars: Galaxy’s Edge and Toy Story Land. This creates a sense of scarcity and makes people feel like they need to visit Disney parks quickly to experience these attractions.
5. Southwest Airlines
Southwest Airlines is known for its low fares and limited-time sales. Southwest often releases flash sales for its flights. These sales typically last for only a few days or even hours. This creates a sense of urgency and makes people feel like they need to book their flights quickly or they will miss out on the low fares.
6. Amazon
Amazon is known for its Prime Day sale, which is a limited-time sale for Prime members. Amazon offers exclusive deals on a wide range of products during Prime Day. This creates a sense of urgency and makes people feel like they need to shop during Prime Day to get the best deals.
7. Hotels.com
Hotels.com is known for its Secret Prices program. The Secret Prices program offers exclusive discounts on hotels to members of the program. However, members of the program only have a limited amount of time to book a hotel at the Secret Price. This creates a sense of urgency and makes people feel like they need to book their hotel quickly to get the best deal.
These are just a few examples of how brands have used the scarcity principle to create high demand for their products and services. The scarcity principle is a powerful psychological tool that can be used to influence people’s purchasing decisions.
How to use the scarcity principle in your own business
If you want to use the scarcity principle in your own business, there are a few things you can do:
- Create limited-edition products or services. This could involve creating a limited number of products, offering limited-time discounts, or releasing limited-edition collaborations.
- Use marketing tactics to build up anticipation for your products and services. This could involve announcing new products and services in advance, offering pre-orders, or creating teaser campaigns.
- Use urgency-based language in your marketing materials. This could include using words and phrases such as “limited time only,” “while supplies last,” and “don’t miss out.”
It is important to note that the scarcity principle should be used sparingly. If you use it too often, people may start to ignore it. You should also use the scarcity principle in a way that is authentic and honest. If people feel like you are artificially creating scarcity, they may be less likely to buy your products and services