In psychology, the Scarcity Principle describes the urge to purchase, gather, or obtain something that a person feels that they may not be able to get in the future – WomenInBusiness.about.com
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One key tactic that you should use when marketing to your designated audience, is to use the scarcity card. “Act today, only 5 left at this price, the orders are coming in fast and furious – be quick – or forever lose this deal”.
Used for real, not artificially – it can/will add a measurable boost to your sales efforts. This works for products and services and any offer you are working on.
Sure, each marketplace requires a different approach, a “scarcity option” for a yearly service contract for a website hosting contract doesn’t make as much sense. (you can make it compelling to pay for the whole year up front, and get a discount for that of course).
In psychology, the Scarcity Principle describes the urge to purchase, gather, or obtain something that a person feels that they may not be able to get in the future – WomenInBusiness.about.com
The truth is, with any service where you trade hours for dollars, there is a limited amount of time that you can offer. You only have so many “billable” hours in a day so you have to figure out how to make the most of your time, while still offering a good product and service to your clients.
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As mentioned, creating scarcity is a tactic that is used often in the marketing world. You’ve seen limited time offers, sold out products, and limited memberships before. The reason is, creating scarcity works! It works so well that it is a very common marketing strategy used by everyone from big companies like Coca-Cola to Internet
marketers and everyone in between.
But, in a coaching practice there is scarcity built in, because time is limited already.
A lot of coaches over estimate the amount of time that they will have actual billable hours. A billable hour is a working hour that you can actually bill someone for. In every business these hours are limited far more than one might expect. Most people think they’ll have forty hours a week in which to bill and that is how they set their hourly rate. This is a mistake.
When you are in business for yourself you have more work to do than simply what is billable. Therefore you have to figure out how many billable hours you can reasonably work before you set your hourly rates. Now you see that you have a real problem because it is unlikely that you will be able to work enough hours to make real money that will give you what you truly desire, which is freedom.
Once you figure out this problem you can start figuring out how to fill in the hours with multiple offerings rather than simply one on one coaching. You can create email coaching programs that are automated, automated drip membership sites, an inner circle and the ultimate prize, the cherry on top of the cream, your one-on-one coaching service. As your client moves across each level the number of people allowed to participate gets lower, and the price for entry gets higher.
What experience have you had with scarcity marketing for your own (coaching) business?
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