Scarcity Can Be An Asset

scarcityYou have a great product. Your customers love it. Should you offer them more?

That seems like a simple question. However, many businesses that jump at the chance to expand find themselves expanding too much and overshooting demand. It isn’t just small businesses that have this problem. The NFL recently found themselves in the same situation. After years of increasing demand they expanded their games to Thursday night. Then they started broadcasting on Twitter and Yahoo. Then, much to their surprise, their ratings started dropping across the board.

The NFL failed to realize that what made their product successful was that supply was limited.  Additionally, the quality of the games shown decreased. Scarcity was their friend. By decreasing scarcity, they also decreased demand.

Don’t assume that demand for your product is unlimited. Talk to your customers and find out why they like your product. Use that information to make sound decisions about expansion plans.