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The Scarcity Tactic

High school and undergraduate college level education taught us the LAW OF SUPPLY & DEMAND. Where the price for a product or service is lower when the supply is high. Conversely, the price will be higher when supplies are low. The trick has always been to keep your inventory low and keep your prices up- without running out of stock and losing customers to another business.

 

 

 

 

 

Meet Suzi

Suzi is a librarian who also bakes some amazing goodies.

We participated in vendor bender last weekend where vendors of MLM’s and home crafted items displayed their goods in a miniature exposition style event. Suzi showed up with two tables full of baked desserts. When the doors opened for the public, it was a sight to see! People were heading straight back to her table (which was in the back of the room) to see what Suzi had created. Plus, her customers wanted to make sure they could purchase from a wide assortment. Evidently, Suzi has a great reputation in providing delicious assortments of baked goods.

 

 

 

As the afternoon progressed, Suzi was courteous in her customer service and efficient in her sales transactions. At the end of the day, as you can see above, Suzi sold out of nearly everything. In fact, I think some of those remaining treats in the bottom right picture had reservation names on them for customers to pick up on their way out the door as pre-paid items.

In Suzi’s case, the scarcity tactic works phenomenally well for her. Her customers know she only bakes a certain amount of mouth watering desserts. They also know she only sells her baked goods at these events.

Suzi knows from experience, her supply and demand equilibrium point. And she capitalizes on it!!

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