Using Price Increase After X Number of Copies, as Scarcity Tactic

by halmo
23 replies
This is a fairly known scarcity tactic when the sales letter states, that the price will increase after 10, 50, 100 (or any specific number of) copies are sold. I always think this can backfire.

I have seen sales letters like tis, and when looked it up again after two weeks, or a month (or any time), and the price was still the same, it gave me the impression that the product really wasn't that good because not many people were buying it.

"If it's so great, then why are people not buying it?" or "If the stated number of people have already bought it, then why didn't they increase the price, as promised? Is the owner so desperate to sell, or does the owner not do what he says in other things too?" This creates a credibility issue.

I know even well-known people use this tactic, but don't you think they expose themselves too much with this? These are my thoughts. What do you think?
#amount #increase #price #scarcity #tactic #time
  • Profile picture of the author Brenden Clerget
    If you're going to use this tactic, you HAVE to use it correctly and increase the price.

    It's most effective when you have a big launch and can expect 500-600 sales, and you let the first 100 go at a lower price, it builds testimonials and your reviews really fast, especially on WSOs. Then the other sales flood in easier than if it was all at a higher price point.

    Never EVER say you're going to increase the price and leave it though with no explanation. Sometimes it's necessary to leave it low, at which point, you just tell the buyers why you've done so.
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    • Profile picture of the author donhx
      Originally Posted by DrivenForMillions View Post

      If you're going to use this tactic, you HAVE to use it correctly and increase the price.

      Hmmm. I dunno. It is a "tactic" and its purpose is to spark an instant sale. If it doesn't work the first time, it simply did not achieve its intended purpose, and that happens. I'm speaking of regular sites here, not a WSO.

      If a person comes back and finds no increase, they should be happy. No one is going to say, "Dang, I wanted it to cost more." They would say, "I'm lucky to get it at the old price." People don't normally feel cheated when they pay less than they expected.
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  • Profile picture of the author Kecia
    I never really thought about it like that, but I will say that this tactic really turns me off. I have stopped purchasing from those using scarcity tactics like these, because I don't like being pressured into feeling that I have to buy the moment I come across a sales page. I like to take the time to research and read reviews from others who have tried the product, so I don't fool with those threatening to raise the price on me.
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    • Profile picture of the author tpw
      Originally Posted by Kecia08 View Post

      I never really thought about it like that, but I will say that this tactic really turns me off. I have stopped purchasing from those using scarcity tactics like these, because I don't like being pressured into feeling that I have to buy the moment I come across a sales page. I like to take the time to research and read reviews from others who have tried the product, so I don't fool with those threatening to raise the price on me.

      I only use it for Warrior Special Offers to help me determine a viable selling price for the public-at-large.
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      • Profile picture of the author halmo
        Originally Posted by tpw View Post

        I only use it for Warrior Special Offers to help me determine a viable selling price for the public-at-large.
        So, how do you determine the number (of copies) after which you raise the price? Based on content, and length, and perceived market for it, and experience?
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        • Profile picture of the author Michael Mayo
          Originally Posted by halmo View Post

          So, how do you determine the number (of copies) after which you raise the price? Based on content, and length, and perceived market for it, and experience?
          You automate the process.

          Example:
          First 10 to purchase, product price $7
          Second 10..................................$9
          Third 10.....................................$11

          ...and so on till the sales dwindle.

          Next you take all the statistics and throw them into a blender. Once
          mixed, you taste test the concoction.

          If after tasting you have a bad taste in your mouth you rinse and repeat
          the testing process. If the the mix tastes good you set the price and begin
          to market the product.

          It's really pretty simple if you think about it.

          Have a Great Day!
          Michael
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          • Profile picture of the author halmo
            Originally Posted by Michael Mayo View Post

            You automate the process.

            Example:
            First 10 to purchase, product price $7
            Second 10..................................$9
            Third 10.....................................$11

            ...and so on till the sales dwindle.

            Next you take all the statistics and throw them into a blender. Once
            mixed, you taste test the concoction.

            If after tasting you have a bad taste in your mouth you rinse and repeat
            the testing process. If the the mix tastes good you set the price and begin
            to market the product.

            It's really pretty simple if you think about it.

            Have a Great Day!
            Michael
            Maybe I didn't ask this clearly, so let me ask another way. How do you decide whether you will offer the specific price for the first 10, or first 20, or first 50, or 100, etc. Obviously, if there is a big launch, then you don't just offer it to the first 10, but rather, to the first 100. But if you are not doing a huge launch, do you just say first 10 because that's what most everybody does, or do you come up with that number in some other way?
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        • Profile picture of the author tpw
          Originally Posted by halmo View Post

          So, how do you determine the number (of copies) after which you raise the price? Based on content, and length, and perceived market for it, and experience?

          I generally do 10 or 20 at each price point, then bump $2 on each price bump.

          When sales begin to slow, I know I am towards the top of the selling range for the WF.

          I truly believe that whatever price point is the top price to ask at the WF, I can double that price when offering it to the general public.

          My point is to test price points, so I want to bump the prices rather quickly. I would never hold a price bump on 100 purchases.
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          • Profile picture of the author Lesley Huntley
            Originally Posted by tpw View Post

            I generally do 10 or 20 at each price point, then bump $2 on each price bump.
            I wouldn't mind this so much, but I find it extremely hard to justify purchasing a product that started at $7, but by the time I've seen it, it's at $47. I've been put off completely by this, even though the copy has been fantastic, and it's product I've really wanted.

            Maybe it's a mental block, but I just can't purchase if I know I'm paying significantly more than others who were a bit quicker. I'll pass every time.

            I've always wondered how others felt about this.
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    • Profile picture of the author WillR
      Originally Posted by Kecia08 View Post

      I have stopped purchasing from those using scarcity tactics like these, because I don't like being pressured into feeling that I have to buy the moment I come across a sales page.
      I don't believe you. All it means is those sales pages have not hit the right buttons or were never selling anything that was of interest to you anyway.

      If the page were selling a product you were desperate for and had done a great job of putting forward the benefits and removing the risk, I do not think you would not buy because they were using this tactic.

      What you actually mean is, most of the sales pages you are coming across are just crap. Poorly written, poorly designed.
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  • Profile picture of the author WillR
    Yes, this technique is definitely overused and abused. A lot of people have misused this tactic for years and ruined it for those of us who now want to use it legitimately.

    Anyway, rather than crying over spilt milk, if I were to use this tactic these days, because it still does work well, I wouldn't change the price based on quantities sold, I would base it on time. You use a countdown timer that says the price will increase every so many minutes. The customer can actually see the time ticking away and if they wait long enough, will see the price change right in front of their eyes.
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  • Profile picture of the author CR
    The countdown timer is the best alternative if you're using this "hurry up" tactic. But if you've got a great product, a top website and copy, why do you need it?
    Another alternative... offer a terrific bonus for the first (however many) to purchase. And do exactly what you say you're going to do. When they're gone... take it off the page. And introduce something else. This way you get to test one offer/bonus against another.
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    • Profile picture of the author halmo
      Originally Posted by CR View Post

      The countdown timer is the best alternative if you're using this "hurry up" tactic. But if you've got a great product, a top website and copy, why do you need it?
      Another alternative... offer a terrific bonus for the first (however many) to purchase. And do exactly what you say you're going to do. When they're gone... take it off the page. And introduce something else. This way you get to test one offer/bonus against another.
      Good point about the countdown (by WillR too). I also like the bonus for the first x number of purchases.
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  • Profile picture of the author WeekendWarrior
    Personally i've had great success by lowering the price for the first buyers and then raising the price afterwards for the remaining customers. Like it was mentioned before it builds reviews but it also gives those loyal customers an incentive to buy from you at a early stage of your sales
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  • Profile picture of the author CyberSorcerer
    I have found A LOT of the, so called Launch Triggers, are over used and either used as scare tactics or too make you feel special. Such as listening to a live webinar and the speaker says WOW, hope you all got in because we've shut the doors and you guys/gals are the lucky ones.

    It's at this time I send my wife the same email message I got to sign up and ask her to sign up and join in the webinar is she can. Guess What? She signs up and gets in no problem? LMAO

    It's at that moment the expert, or Guru, shows he's in it for the money only and if he can scare it out of you, or make you feel good about giving him money then it's all good!
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  • Profile picture of the author Doug Slaton
    I'm glad the testing purposes point was brought out. I had never thought of that angle before on this. That actually makes some sense.

    I think many people (maybe most) buy things based on value. Motivational guru Robbins talks about adding value to peoples lives or to products, etc. So when prices are increased and there's no value added to the product, it doesn't seem quite right to me. I get it from a sellers perspective...line the pockets with gold.

    If more people have bought something then if anything the value has gone done because there's more possible competition if for example it's some sort of money making method.

    Seems like scarcity methods work better with tangible products because of real world production challenges but for digital, how can you explain it? Oh, sorry our 1s and 0s are melting away, quick buy now!
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  • Profile picture of the author Rsberg
    I've been studying this topic lately, watching the WSO section to see if there is any ONE method that seems to clearly work better than the others and from what I can tell there really isn’t.

    Yes, some methods (like raising the price point by $2 every few sold) do work well but from what I can tell it really boils down to customer satisfaction and the quality of the product.

    I've also spent some time in the product review forum and I've certainly noticed one MAJOR turn off from the masses there...

    Over hyped sales letters or those that simply lie straight to your face. I won’t mention the product name but there was one specifically that blatantly lied on the sales page as to how many would be sold and that caused many people to not trust the product owner which in turn led to refund requests...without consideration as to the quality of the product.

    The main point I'm trying to make is that regardless of your pricing strategy be sure to remain honest and show your perspective customers that you are someone who can be trusted, someone they can count on to do what they say which in turn translates into them feeling better about your product as well (as long as it delivers what the sales letter states it will).
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    • Profile picture of the author tpw
      Originally Posted by Lesley Huntley View Post

      I wouldn't mind this so much, but I find it extremely hard to justify purchasing a product that started at $7, but by the time I've seen it, it's at $47. I've been put off completely by this, even though the copy has been fantastic, and it's product I've really wanted.

      Maybe it's a mental block, but I just can't purchase if I know I'm paying significantly more than others who were a bit quicker. I'll pass every time.

      I've always wondered how others felt about this.

      I am really sorry to hear that...

      I give discounts to Warriors for helping me with my market research, although the pricing for a product is set up on the dime-store pricing format.

      If you would like to visit my public sales page, I encourage you to do so... The $37 price there will be the same tomorrow and one month from now as it is today:

      35 Time-Tested Strategies for Delivering Prospects to your Websites




      Originally Posted by Rsberg View Post

      I've been studying this topic lately, watching the WSO section to see if there is any ONE method that seems to clearly work better than the others and from what I can tell there really isn’t.

      Yes, some methods (like raising the price point by $2 every few sold) do work well but from what I can tell it really boils down to customer satisfaction and the quality of the product.

      I've also spent some time in the product review forum and I've certainly noticed one MAJOR turn off from the masses there...

      Over hyped sales letters or those that simply lie straight to your face. I won’t mention the product name but there was one specifically that blatantly lied on the sales page as to how many would be sold and that caused many people to not trust the product owner which in turn led to refund requests...without consideration as to the quality of the product.

      The main point I'm trying to make is that regardless of your pricing strategy be sure to remain honest and show your perspective customers that you are someone who can be trusted, someone they can count on to do what they say which in turn translates into them feeling better about your product as well (as long as it delivers what the sales letter states it will).

      There is also a secondary reason I use the Warrior Special Offers. It is also a very strong incentive for me to offer discounts to Warriors.

      In order to convince people that my product offers real value to consumers, I need reviews and recommendations for my products.

      Those reviews and recommendations are the Social Proof that I need to provide to consumers to help them off the fence when they are considering my products.

      Warriors are always very generous about offering good feedback on my products. This allows me to get the Social Proof necessary to show other consumers that I really do create quality products.

      By starting my pricing at $10 for a product I honestly believe is worth $97, I can entice people to buy the product at $10, when I know that they would never buy at $97.

      I need the Social Proof to sell it for $37 or $97, and if I have to practically give away the product early on, to get those reviews and recommendations, it is far better to do that than to never be able to sell the product at full price.
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    • Profile picture of the author halmo
      Good to hear the different perspectives here. Testing the price in the WF is an interesting idea -- and maybe it is a better place to use this tactic than the real world (read: general public).

      And, yes remaining honest is crucial.
      Originally Posted by Rsberg View Post

      The main point I'm trying to make is that regardless of your pricing strategy be sure to remain honest and show your perspective customers that you are someone who can be trusted, someone they can count on to do what they say which in turn translates into them feeling better about your product as well (as long as it delivers what the sales letter states it will).
      I also wonder if raising the price is more viable with lower priced products. I am thinking about the general buying psychology among people. Most everybody buys lower priced products (just as with physical products, such as milk and bread), but not everybody buys higher priced products (I am thinking more above $500, $1,000, $5,000 etc.) People's buying psychology who spend $5,000 on a non-essential item is different than the psychology of those who always want the best deal and the lowest price. I don't know at what price level these two groups would separate, but maybe the viability of this price increase tactic also depends on the group of buyers the product is targeting.
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  • Profile picture of the author biosclan
    The fear of loss is a tried and true method that works only when the buyer is truly afraid of losing out on what is being offered.

    Losing out on 10$ when the ebook goes up from 7 to 17 isn't that much of a loss, especially if the ebook promises 50-100 a day blah blah.

    Its best used when there is a drastic upswing in price or a "only 10 copies left" type situation, imho.
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  • Profile picture of the author JamieSEO
    If you want to try something out you can always use dime sales on WSO's that you have here.

    You can easily automate it to increase by $x every y sales

    I think the golden rule to using this scarcity tactic is that you actually follow through and increase the price. If you need to drop it again later to make the sales you just have a limited Christmas 50% off special or something
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