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Scarcity, Good or Bad?

Posted by on July 14, 2008

Scarcity is an interesting and powerful concept. Check out this post from Seth Godin’s blog regarding scarcity.

I do think that there is line you should draw on exactly how scarce your product is.  The Apple Iphone is a bit scarce, but at the same time they are selling them by the thousands in virtually every Apple and AT&T store.  If a product is in demand than you can make it somewhat scarce to increase demand even further, not to mention the powerful effect of word of mouth (provided you are marketing it well).  However if a product is not popular or well received then scarcity may not be the best thing for you.

What do you think, is scarcity good or bad?

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  • Well, the premise seems to be that the product is not a natural sale and that lack or abundance is a variable to be massaged. That is zero-sum economics, and encourages frivolous products so long as they can be sold, by some formula or campaign, not by the quality or value of the item itself. I don’t think you mean that though.

  • @daniel

    i wouldn’t say i encourage any type of product to be made. The main point if scarcity is going to be something that you try to control that you should be very careful with how you do it. frivolous products or not, from a business standpoint the goal is simply to sell them and make revenue. i definitely believe that the quality of the product is by far the most important attribute.

    what did you think of seth’s post?