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Last chance to get my top 4 tips to increase sales
Last chance to get my top 4 tips to increase sales
This is the last in a short series in which we've been talking about the power of increasing sales using the principles of urgency and scarcity ' two of my favorite techniques.
Why? Because it works. Remember the story I told you about the test in which the number of jams offered in a tasting were reduced from 24 to 6 and sales soared?
A similar thing happened in another test. When a desirable Sony appliance was placed in a shop window, and marked down, there was a lot of enthusiasm among consumers just as you might expect. But when a similar item was placed beside it in the window enthusiasm ' and sales ' dropped.
Believe it or not, as consumers we don't like a lot of choices.
It also explains why so many of us in our thirties and forties are still trying to figure out what we want do in our careers. It's the same reason why so many people complain that the restaurant menu is too big. There are too many choices!
As a result of all these choices we don't take action.
That's why one of the best things you can do to increase sales is reduce the choices. And reduce the time someone has to act. It's a one-two punch that really can increase desirability ' and sales!
Here are my top 4 ways to do it'
Limit the availability of bonuses. How can you do that? Offer a take-away such as bonuses or gifts customers can get with their purchase BUT put a deadline on the offer. People never want something so much than when it might be snatched away from them and may no longer be available. If you create a hard deadline, after which no orders will be accepted, or if you can place the limits on the number of orders that you will fulfill, you can dramatically increase sales.
What is a 'Nifty 50', and why use it? A 'Nifty 50' is a free bonus offer whereby you give the free gift to the first 50 people who respond. That way, you can afford to give away an expensive gift (like a pair of nice binoculars), to the first 50 people who buy tickets to the opera. This is sometimes called an early-bird bonus or a 'fast 50'. You can also limit the timeframe for the free gift to apply ('Reply by December 15th and get a free Mont Blanc pen).
A word to the wise: Be careful when you go to print, because a delay at the printer could cause you real problems! Test the amount of days that your offer will be available for (10, 15 or 30 days) to find out which one works best. When in doubt test, test, test.
Limit the number of orders that you'll accept. Create a waiting list for what you're selling. Broadway tickets to sold-out shows are a highly desirable item. Reservations in trendy restaurants have waiting lists. Heck, even some ritzy pre-schools have waiting lists. Think about the urgency and compulsion many parents have to sign up their kid shortly after birth! Every Christmas there's the 'toy in short supply' pandemonium. Consider whether you can create a waiting list for your product or service.
Limit access to your product. How do you limit access to you or your product? Business coaches and gurus do a great job at this by creating separate levels of their product, (Silver, Gold and Platinum) each one giving greater access to the guru. The Silver level member has no direct access and can only read or listen to the guru in group settings. The Gold member has limited access in smaller groups and pays for more exclusive information that only goes to them. The highest level of access to the guru is the Platinum level, where members actually have one-on-one meetings in a closed door environment, and get exclusive information and insights directly from the guru. The difference in costs are nearly 100 fold, but because it's so limited, the perceived value is so high.
One coaching company creates a hurdle that, in itself, by limiting access, increases desirability.
This company bases inclusion into levels of membership on personal income. There are three categories: $100,000, $250,000 and $500,000 in personal, annual income. Each of these income levels must be verified with W-2 tax returns or statements from your accountant. Part of the pitch that these organizations use to motivate people is the desire among members to be perceived as wealthy.
Members want to be around others who are successful and are willing to pay more for the privilege. The ironic thing is that as you proceed up, there's no extra value that is given, per se, but each level is charged more for the same service. The advantage of prestige must be worth the money.
Those are just a couple a few ways to increase the desirability of your products and services by limiting what you have to offer.
By the way, I've you've missed any of the related articles from the previous two weeks I encourage you to check them out in our e-letter archives at http://www.yourbusinessgps.com/eletter.
The principle of urgency and scarcity is one of the most powerful techniques you can use to increase sales.
Try it! I guarantee that it works. These are the same principles I've been using with clients for more than 25 years and they never fail. I sincerely hope they work for you too. And be sure to let me know how it goes.
Always taking you from where you are to where you want to go,
Jon Goldman, President