From the course: Pricing Strategy Explained

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Pricing variable 5: Scarcity

Pricing variable 5: Scarcity

From the course: Pricing Strategy Explained

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Pricing variable 5: Scarcity

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- Our next price influencer is scarcity. Are your products hard to find? Maybe you're the only one that actually provides it or there are very few people that actually provide your product or service. These are some of the questions that I want to to make sure that you ask when you're looking at scarcity and looking at supply. Maybe there's an abundance of supply out there. Well, if there's abundance of supply, it's actually going to be harder for you to charge a higher price. Your price is going to be much more constrained. But if there's low supply, then you can come in and you can charge possibly whatever price you want. That's how scarcity kind of plays into influencing your overall pricing strategy. So the key strategy here is for having higher pricing, or having at least more flexibility around your pricing is to position your product or service in an area that would be more scarce, that there's less supply in.…

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