Tag Archive for: psychology of persuasion

The Principle of Scarcity

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Scarcity boils down to this for most people — if I can’t have it, then I want it! If something is scarce that means it’s not plentiful and usually difficult to come by. It’s amazing how people respond differently when they suddenly know something they want is in short supply or may not be around for long.

If you’ve raised kids then you’ve definitely seen this principle at work. Just tell your child what toy they can’t have and suddenly it’s the only toy they want to play with! Or tell them what they can’t do and that’s all they’ll want to do!

As you read the following, answer the questions based on your personal experience:

  • Have you hurried out to a store because you heard the sale ends Sunday?
  • Did you ever buy a Disney DVD for your kids because “soon it will go back into the
  • Disney vault?”
  • Have you ever bought something for your home (roof, gutters, siding, paint) because the salesman said you can save 10%, if you signed right then?
  • Do you buy gas now when the price hits $2.25 because you think it will go to $2.50 (or higher) over the weekend?
  • Have you ever bought something on the Home Shopping Network because the little clock on the screen was ticking away?

If you answered “yes” to any of those questions then scarcity was influencing your decisions. It’s natural for us to hurry and make decisions because the thing we want is becoming less available or is in short supply.

Research on this subject lets us in on something else important. People are generally more motivated by knowing what they stand to lose as opposed to what they stand to gain. For example, saying, “If you choose not to buy our product, you will lose $500 dollars a year” will motivate more people to buy the product than will be motivated by saying, “If you buy our product you will save $500 a year.” If you know you’ll have more success using the first sentence, wouldn’t you want to do so?

Now you have a brief overview of the scarcity principle.

Compare and Contrast

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Compare and contrast is not a principle of influence; rather we talk about it as a phenomenon. Did you know the order in which you present things impacts your perception about the things presented? For example, if someone told you the price of a piece of furniture was $999 then quickly said, “I’m sorry, that wasn’t correct. The price is actually $799.” All of a sudden $799 seems like a very good deal in comparison to the original price. If the salesperson has originally quoted $599, then came back and told you the actual price was $799, now you’re disappointed because the price seems high…by comparison.

What you present first makes all the difference. If you own a restaurant and your wine list starts with $20 bottles and works up to a $200 bottle, very quickly the $60 or $70 bottle seems expensive when your eyes saw $20 first. But, if the list starts with the $200 bottle at the top and works down to the less expensive bottles, now by comparison a $100 bottle doesn’t seem so expensive and the $60 – $70 bottles appear to be a bargain. Odds are, by listing the highest priced bottles first, the average sale on a bottle of wine will be higher than if the restaurant starts with the cheapest bottles at the top of the list. If that’s all it takes to increase sales, then isn’t it worth the change?

Comparing and contrasting numbers and features are also important when thinking about reciprocity. What you present first can have a big, big effect on how future presentations are perceived. When you make your presentation undoubtedly there will be times when you hear the dreaded, “No thanks.” That’s a part of life and I suspect some of the reason you’re reading this blog – you want to be more successful – hear “No” less and “Yes” more. Most people hear “no,” and leave the situation feeling defeated but, if you’re ready with an alternative proposal, one that looks even better by comparison, then the other person might just say “Yes.”

And that’s your overview of comparing and contrasting.