Perceptions of Scarcity Strategy

One of the challenges in selling large volumes (more than 100 items) on the internet is the fact that we display a list of items that many on the internet at one time unit, or we're selling a large amount of an item. This makes the buyer has a high bargaining power and can cause prices to fall. Buyer understands intuitively the law of demand and supply. The bigger the offering we give, the more does not buy us. They will wait until prices come down, making it attractive for them to buy. The biggest mistake of the seller is supposed to show an information that is confidential information, which is bidding. To realize these sales required an ingenious strategy known as the perception of scarcity strategy or the perception of scarcity strategy.

The perception of scarcity strategy is suitable for using the concept of an auction sale on the internet. Companies that use this strategy eBay.com. More than one million people sell on eBay.com and more than 105 million to buy the product on eBay.com. This strategy consists of two types. First, take some items, such as a second item or four items put on auction items and Buy It Now (BIN) at a price of 0 to 10% above average price. Buy It Now (BIN) is a fixed price list which the buyer can stop the auction immediately without waiting for bidding or auction ends. After the item is sold, replaced the next item using Buy It Now (BIN) to 100 items that were sold all at competitive prices. Second, take a portion of inventory, for example 5% to 10% at the auction was stopped and by using a very low starting price with no reserves to spend all of the items. This will create an auction of items sold to be extraordinary. In this auction we can connect with the auction Buy It Now (BIN). Thus, buyers looking for our goods using two options, namely through the list of Buy It Now (BIN) us or participate with a very low starting price with no reserve auction.

The perception of scarcity strategy will create a response to the majority of buyers to choose the Buy It Now. Buy It Now option is also displayed if the buyer looking for items of daily needs or buyers who do not like competition. In addition, no reserve auction, the buyer who won only one, while the losing very much and have to wait for the same item, it will ultimately choose to use Buy It Now auction or direct purchase.

This clever strategy is never revealed how much inventory we have and we can use various forms of strategies to achieve the goal of maximizing the price and speed in the product.

by : msuyanto.com