In this Episode Max talks about Artificial Scarcity. What is it, why is it important and how can you benefit from it.
The whole Episode is just about 6 minutes. Have fun
Also check out the latest TikTok Video where Max talks about Articial Scarcity:
Full Podcast Script
So Artificial Scarcity is the real deal my friends. In very technical terms, artificial scarcity is the scarcity of items or products even though either the technology and production or the sharing capacity exists to create a theoretically limitless abundance. So does that even mean, right? I know. Let me explain it. It simply means, that the scarcity was created on purpose even though a higher product availability would have been possible.
Fact is, we’re all intrigued when we think we can’t have something. Artificial scarcity shifts our attention from the loss of money we’d pay for a product to the potential loss of having that product at all. I’m sure y’all saw the little stickers close to a product you were thinking to purchase. The stickers could say something like this:
“For a limited time avaialble”
“Only 2 left in stock”
In the age of mass production and globalization how can this company always run out of stock, right?
Well, these phrases are tools that are used to push you to make a purchase today that you’d otherwise put off. This, my friends is Artificial Scarcity.
I’ll give you another example that I recently shared as a short Video on TikTok:
In 1905 the company Kelloggs’ booked a full page print ad in the ladies home journal. The only Ad text was: Kelloggs corn flakes sold out – no longer accepting orders.
Guess what happened next? The next day the orders skyrocketed and starting then, Kelloggs became Americas number one cereal. They used artificial scarcity to create a huge demand for their product. And that was almost 120 years ago, my friends.
So yea there’s nothing new under the sun I guess – this tactic has been used for a very long time but with modern marketing tools, Brands just lifted that to a whole new level.
Now that we covered what artificial scarcity actually is, let’s see how YOU can benefit from it.
The answer to this question depends a bit on who you.
Let’s split the answer into 2 different areas: How can you benefit as a company (in case you who are a Marketing Manager or Start-up Founder
And how you can benefit as a consumer.
As a company you can benefit by simply execute on this strategy. Specially if you’re selling online you could start adding a bit of a scarcity to your products. Limit your stock or run a special for a fixed period of time can help you increase your Sale.
On the other hand, as a consumer always keep in mind that Marketing tries to well, let’s be honest to manipulate you into buying certain things. So before buying a product, always ask yourself, Do I really want to buy this right now or am I maybe pushed into buying it.