Scarcity Model

What is the scarcity model? A scarcity model is used in marketing to create the illusion of either limited supply, or a limited time period in which to make a decision. It is an effective form of motivating potential customers to make a decision which they may otherwise put off to a later date or never make at all.

The January Sales are an effective ‘scarcity model‘ in which customers know there is a huge drop in price for many items and only a short amount of time to get the bargains.

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Internet marketers often capitalize on this model of selling products and services online by putting countdown timers on their websites or web pages, to limit availability and/or decision making time. By limiting the decision making time for a purchase or decision this often is the motivating factor which forces the customer to buy a product, enter their email or subscribe to a service.

This is used on many online websites before and after a sale. Before the sale goes through a timer shows the visitor that if they don’t purchase within a set time period the price will go up. Once they purchase they are then shown another webpage with a bonus product which is offered as a one time purchase and again only a limited time to make a decision before the product is forever out of their reach! The psychology of this obviously works because it is becoming more popular on many websites and products.

The thought of not having the decision to be able to return and purchase an item at a later date is often the clinch in the deal. If you had time to think, you might perhaps decide that you really don’t need the product or that you could return after thinking about it.Taking this option away forces your hand into one decision or another.

Scarcity model and belief

Often people have an inbuilt ‘scarcity model’ of life in general and this often can relate to money and finances. If you always believe in a limited supply of something you will always create it in your life and live to the limits of what you deem as ‘possible’ within your own specific ‘scarcity model’. The belief is often an old program which has been implanted by a role model or role models in your life and which you perpetuate by continuing to act out the belief as if it were true.

Build your own scarcity model into your online sales

If you have a website or blog you can use this tool to build in a scarcity model to your own online sales. It can also be used for timing out promotional offers and discounts to your online or offline sales.

 

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