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You can sell scarce goods, but you can raise the stakes even higher by offering scarce information about those goods. This is the ultimate marketing double-whammy, says Dr. Robert Cialdini, esteemed researcher and author of Influence: The Psychology of Persuasion (Perennial Currents, 1998). For example, let s say you re selling Chinese rugs made in a particular area of the Guangzhou Province, and you know (because you re a niche insider) that one of the weaving production centers is going to shut down because of a shortage of certain pigment dyes. You d have to be insane not to include this information in your auction description.
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By adding this information, you accomplish three things: You communicate the fact that these rugs are becoming scarce. You provide scarce information. You demonstrate your intimate knowledge of the Chinese rug trade.
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When people understand that an item is scarce, they compete for it. Competing with other buyers is one of the few ways you can acquire something scarce, and it s one of the potent underlying drivers of eBay auction sales. If two or more bidders are competing for your item, you ll know right away. Sometimes product competition materializes out of the blue because you stumbled on a hot trend or hard-to-find product. Other times the positioning is strategically created. If you pay attention to the concept of scarcity when you buy and describe your goods, you ll be using sound strategy and placing profitability odds in your favor. eBay statistics show that listings with at least one bid usually draw in more bids and have a higher final sales price. Once somebody bids, a stamp of approval is created that drives other people to bid on the item. You see this in department stores. For example, when shoppers go into a big half-yearly sale, which table do the die-hards go to first The one with all the other rabid shoppers around it. They might not know what s on the table. There s a good chance that they don t need what s on the table. Yet they must have a crack at what s on that dang table.
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Tip: People also compete when items are not scarce. If your item is priced
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and positioned well, you can create emotional tension between two shoppers and generate the competition needed for profitability. All it takes is two bidders.
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Consensus, Conformity, and Social Proof
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People like to follow the trends and purchase what the group has determined to be desirable. It s a chicken-and-egg situation that relates to scarcity, in fact. If you ask yourself, Did the trend come first, and then the scarcity Or did the scarcity develop into a trend you may never know the answer. We do know, however, that people don t want to go out on a limb and purchase something that no one else considers valuable. That s why it s advantageous to list 47 items even if you have 50 of them. This gives the impression that people are already diving into the supplies. You can see this concept at work in brickand-mortar supermarkets, too, where stockers stack products nicely but a few cans or oranges or whatever is obviously missing from the stack. Most people are nudged along by consensus, conformity, and social proof. Social proof just means that most of us look around at the crowd and use that information when making decisions about what s right, useful, acceptable, possible, and so on.
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Here s one example of social proof in marketing copy. TV advertisers often conclude their ads with the following call to action: Operators are standing by, please call now. Others close with, If operators are busy, please call again. Which one do you think produces more sales You ve heard the first one a million times. The second one introduces a little twist and quite a bit more information: operators are so busy taking buyers calls that you might need to call again. The item is so hot that they can t hire operators and upgrade the phone system fast enough. So, the second call to action does two things: it reinforces the idea that the item is scarce, and it indicates that others are actively pursuing the item. The item is scarce, people are competing for it, and if the buyer chooses to buy, she isn t going to be getting something that everybody else doesn t want. Based on all those goodies, she ll probably be pretty happy with her decision. The cool thing about eBay auction-format listings is that they automatically build in social proof, competition, and scarcity. The bidding action shows the potential buyer which products are most sought after. It indicates how many people want these products. If a lot of people are interested, the desired level of enthusiasm and selling activity ensues.
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