Creating Demand Through Fear of Loss

There are many ways to create demand for a product. One of them is by using fear of loss. The potential buyer makes up his mind to purchase when the possibility arises that the product may no longer be available.

I saw this method in action the other day. My daughter and I went into a local consignment toy store and noticed a brand new blackboard and paint easel at an amazing price. Unfortunately, someone else also seemed very interested in it.

My daughter casually remarked that the price wasn’t that great and started to look at something else nearby. The other customer, who of course overheard her comment, also turned away and began looking at other merchandise. As soon as he walked away, my daughter picked up the easel and took it to the cash. I’ve never seen her move so fast.

Two lessons learned that day: fear of loss does make people decide quickly and social proof plays a big role. In this case, because a total stranger said that the price wasn’t that special, the other interested customer decided not to bother with a product he had been looking at. How can you use social proof to create demand for your products or services?