6 Laws of Persuasion (Part 6) - Scarcity

Ever shop for flights online and see the tag "there are only 2 tickets left" or how about informercials that claim it is for a limited time only or that there are only X amount left. 

Wonder why antiques are so expensive? 

It all comes down to our last social influence in our 6 part series: Scarcity

Basic Premise

• Things seem more valuable when their availability is limited.

• Scarcity can turn garbage into prized possessions.
• When you ban something, there is a loss of freedom which makes the banned item more appealing (teenage rebellion, prohibition and drugs).
• Scarcity has a stronger effect when:
• the item was previously abundant rather than being constantly scarce (look at the salt rush due to the nuclear incident in Japan).
• people are in competition with other people for the item (auctions usually generate higher prices especially when there is more than one bidder).

How People Take Advantage of Scarcity

Long line for Chicken and Ginseng Soup

• As mentioned in the introduction, sellers usually use a deadline and/or limited number technique where you better act fast before the few items left are sold out or before time runs out and you lose out on the special offer.

• If you have ever bought real estate, you've probably experienced the sudden "unknown buyer" who has come in to bid for the same place you're bidding for. This is a perfect example of trying to create competition for the item.
• Long lines at a restaurant or club also gives a sense of scarcity because it shows that there is only so much space and "everyone" wants to get in.

Best Defense

• Realize that the joy is not in experiencing the scarce commodity but possessing it so you need to ask yourself why you want to own this item: Ownership or Utility? If for usefulness, remember that scarce things are no more useful than things in abundance.

• Objectively evaluate the item for its real value and don't overvalue it simply because it is scarce. 

Seemingly Useless Closing Remarks: 

With this article we have concluded this 6 part series on Persuasion: 

Reciprocity, Commitment/Consistency, Social Proof, Liking, Authority and Scarcity. 

Writing these articles have furthered my awareness in the social influences that surround me everyday. I hope it will make you a better consumer just being aware of the various tactics your are bombarded with on a daily basis and on the flip side, provided you with a arsenal of effective tools you can use next time you need to persuade someone. 

Feel free to leave comments on your thoughts about the article.