65. Create demand for your product or service.
In Orlando, Florida, the visionary Walt Disney had a team of folks buy all the property he needed to build Disney World. They were able to keep everyone sworn to secrecy. As soon as the purchase became known and everyone found out what was going on, the property values went sky high.
If you wanted to sell hot dogs in New York City you would have to buy a license. There are only a certain number of licenses available, which makes them increase in value. The current selling price for a hot dog cart license in New York City is between $350,000 and $500,000.
The same is true for a taxi cab license.
Wallstreet.com sold for one million dollars. Business.com sold for seven million dollars. The Los Angles Country Club was built in the 1950's at which time you could buy one of a thousand available memberships for $5,000. The standing price today is one million dollars.
You can see that people want what they can't have. When they can't have it, value is created.
How can this help you?
Here is an example.
There is a Martial Arts company near my home and my nephew is a member. When he first started going he was getting a lot of individual attention. Being a member of the team was important. After a year things started to change. The instructor wanted to go form 50 students to 150 students. He moved to a more expensive location, hired some help, and now spends most of his time chasing after new recruits to help pay for his increased overhead. He is actually making less money than he was with his original 50, many whom have left.
What if he understood the concept of supply and demand?
What if he would have raised his price and limited his students to 50. The only way you could become a member would be by referral and then you had to fill out an application and go through an interview process along with the parents. Interviews would be held only once per month on the second Tuesday from noon until 9:00 PM, by appointment. What if, rather than answer his phone you heard a recording that said he was training his students and is unable to come to the phone because he didn't want to interrupt their focus and concentration. What if all phone calls were returned at the end of the day by his wife (who works with him as his office assistant) and finds out what they wanted. If it was important enough, a phone appointment would be set up with the instructor.
This is the same strategy doctors and dentists use to create a sense of being busy. They schedule appointment times close together and make you wait.
When you are talking with a prospect and you have made the call on them, imply that you are only there to see if they qualify for you to spend time and energy helping them solve their problems.
Here is another example.
Trade show attendance has always a problem with many companies. Some of the smart companies are only allowing people to attend who are purchasing a certain dollar volume from them. They have even required an RSVP with a deposit that is refundable towards the purchase of anything at the show.
This is the law of supply and demand. If there is an unlimited supply, you and your products become a commodity. However, if you can somehow limit the supply, the demand will not only increase, the value will go up as well.
Comments:
My number 1 client is a a very old established Country Club and they keep the membership at 300 golfers for ever! There is a 2 year waiting list and golfers can play at an affiliated club while waiting for membership.. but the members from that club can't play here! This keeps the interest and demand way above supply and the membership prices raise each season.
Brett Nettleton
Back in the 1970’s the Detroit auto makers decided to stop making convertibles because of the extra production cost and the sales not once they once were. The last production run for any manufacturer was the 1976 Cadillac Eldorado. When people found out that convertibles weren’t being made anymore the demand went up for any convertible new or used[this really helped the collector car market]. After a few years the automakers realized that there was a good market for convertibles still and started making some models again [first one back was the 1984 Chrysler Lebaron]. So true people want what they can’t have [I’ve managed not to sell my 1967 Buick GS400 convertible all these years because it is rare and a lot of people want it but it’s better than money in the bank].
Cary McAfee
People, including our customers, want to do business with successful people. To a lot of them, busy is successful. I will rarely answer a customers’ first attempt to contact me even if my phone isn’t busy. I want them to know I’m busy and my time is valuable to them. I want them to know I am focused on the customer I am with or who’s business I am taking care of at the moment. Sometimes I use that “lag time” to switch gears and focus on that customer who attempted to call me before I call them back. When I do return that call,(promptly) they know the time is theirs and that it is valuable.
Chris Chase
There is a restaurant I called on that always had a line waiting to get in to eat. When asked why he didn’t expand his seating, he said that waiting in line was part of the mystique of eating at his establishment and if that changed, he might lose business. If people think that a place is worth waiting in line for, it must be great and the thing to do.
Larry Edmondson
Customers need to have their confidence built up about your product or service. I think using names of your satisfied customers that he knows, especially his competitors, is one of the most effective ways to do this. He does not want to be left behind his competitors when a good opportunity is available.
Crocker Smith
The example that was shown in the article was a medical office that makes sure their appointments are scheduled together so that the patients think the doctor is busy. I really agree with this. I have worked in a Chiropractic office before and it works.
You can also do the same in Staffing. In the past when making appointments with new clients I make sure that I am not available all the time. This gives the clients the impression that you are busy because other customers need your assistance too. “I am available Tuesday at 2:00pm and Thursday at 10:00am. Are either of those times good for you?”
If your business is in a small city you can also mention other clients that are very happy with your business. In the past I have carried a book around of client reference letters. It never hurts!
Danah Parmley
Supply and demand is basic in the business world. It is true, people want what other people have and then they really want it if they can’t have it. So how can we make people want out service? We have to let them know that we are in high demand as are the people and services we supply. Will everyone jump on board, probably not but some will and that’s all it takes to get the ball rolling.
Brandon Sanchez
Supply and demand is the very foundation of successful sales. People want what they can’t have; it’s a simple fact of life. And to make that statement even truer, people are willing to pay outrageous amounts to get it.
I fell victim to it. A golf course I played at decided it wanted to cut down on the crowding and went to a membership policy. A golf game went from $45 to $250 plus a $500 a month membership fee.
Matthew Thacker
"I've also noticed that, not only do people want what they can't have, but they want what other people want. I made a sales call to present our payroll service to a gentleman about a month and 1/2 ago. He was interested but never would commit. Yesterday I went to go visit him again to check in. He was still half interested half not really. When I told him that a company in the area, about his companies size, was astounded by the service we provide and can't wait to sign up he became a lot more interested."
Angie Dussouy
"When you are talking with a prospect and you have made the call on them, imply that you are only there to see if they qualify for you to spend time and energy helping them solve their problems."