Scarcity is Abundance

OK, a little more human psychology. Scarcity creates demand. Maybe it’s less psychology and more classic economics. I’m not talking about supply and demand to get a higher price—you can always print more manuals—so running out of materials after your speech doesn’t help you get a higher price—but it does help you sell more of them.

Remember, the objective after your speech is to sell your materials after your speech—right after your speech. On the spot, right now! If they don’t buy now, they probably never will. So a “scarcity” strategy is designed to sell more materials—right after your speech.

Even if I could travel with enough material to sell to my anticipated percentage of investors, I rarely do. If at the end of your speech, your audience sees boxes upon boxes of materials, they are less likely to rush to the front of the room and purchase them. They figure they have lots of time to get them (next break, after lunch etc.). You can’t afford to miss a single sale and abundance breeds procrastination. If people think you brought enough materials for everyone, someone will end up not buying.

I take a different approach to abundance. I purposely make sure I’ll run out of material and I tell my audience that upfront. I make sure they know that if they procrastinate, they may be left out.

I will say something like, “American Airlines’ baggage weight restriction kept me from flying with enough material for everyone and for that I apologize.” I then look at the meeting sponsor or head of the group and say something like, “I guess the only way to handle this is first-come, first-served.” Remember that there’s always some time between the sales presentation and the end of your speech so now I’ve got my audience plotting exactly how they will jump over little old ladies to be the first to reach my table.

At a speech in Nashville a couple of years ago, after using the script above, the association president came up after my speech to thank me—holding checks from two people in the back of the room who were afraid they’d get left out.

I’ve had people run up, grab my package of materials and then fill out the order form. I once had a woman mouth the words, “Save one for me,” from six rows back. All this behavior motivates your “fence sitters” to move from prospect to buyer.

You’re not going to get the reactions I’ve just described if you say, “I brought plenty for everyone so please visit my table at your convenience.”

Almost everyone asks me sheepishly, “Do you have any left?” It’s yet another reason I never display more than one set of materials at a time, hoping the audience will worry that that’s all I brought.

When I explain in my sales presentation that I didn’t bring enough material for everyone, I also add, “For those of you who get left out, I’ll send you your materials over the next 5-7 days.” I don’t mention anything about shipping costs but my order form shows a $7 fee—in the rare event someone orders after the speech.

No one wants to be “left out.” No one wants to wait 5-7 days for information that will change the way they do business forever. No one wants to pay what they think is a $7 shipping fee—just because they didn’t get to my table fast enough.

When I run out of materials, I quietly explain that I will ship the materials the moment I get home (at my cost), not wanting to discourage any other buyers.

Scarcity is a tremendous motivator for on-site impulse buying and is a vital element of this system.