The Human Mind
Businesses are built by people for people.
Understanding how we take in information,
how we make decisions, and how we decide
what to do or what not to do is critically important
if you want to create and sustain a successful business venture.
Scarcity
“The way to love anything is to realize it might be lost.” — G. K. Chesterton, English writer and Christian apologist
Key Ideas:
- Scarcity encourages people to act quickly. If people think they may lose the chance to acquire what you offer, they may take the risk. Loss Aversion ensures that the possibility of losing feels bad enough to prompt them to act now.
- Scarcity makes waiting feel like a loss.
- Here are a few ways to create Scarcity:
- Limited Quantities
- Price Increases in the near future
- Price Decreases that will end in the near future
- Deadlines
- Add an element of Scarcity to your offer, and you’ll encourage people to buy now instead of later.
Questions for Consideration:
- Does your offer have an element of scarcity?
- If not, what limited time or quantity option could you add to your offer to make it more appealing?