PERCEPTION OF SCARCITY STRATEGY

One of the challenges in selling large volumes (more than 100 items) on the Internet is the fact that we display a list of many items on the Internet at one time unit or you are selling a large amount of an item. This makes the buyer has a high bargaining power and can cause prices to fall. Purchaser understands intuitively the law of demand and supply. The greater the supply we give, the more do not buy us. They will wait until the price falls, so be interesting for them to buy. Biggest mistake of the seller is to display an information should be confidential information, which is bidding. To realize such sale takes clever strategy called the Perception of scarcity Strategy or the perception of scarcity strategy. The Perception of scarcity strategy is suitable for sales by using the concept of auctions on the Internet. Companies that use is stratregi eBay.com. More than 1 million people selling on eBay.com, and more than 105 million to buy the product on eBay.com strategy consists of two types. First, take some items only, such as 2 or 4 items, items put on auction and Buy It Now (BIN) at the price of 0 to 10% above average price. Buy It Now (BIN) is a fixed price list which the buyer can stop the auction immediately without waiting for bidding or auction ends. After the item is sold, replaced by the next item using Buy It Now (BIN) to 100 items were sold all at competitive prices. Second, take a portion of inventory, for example 5% to 10% at the auction was stopped and by using the initial prices are very low by spending all the items without a reserve. This will create an auction of items sold to be extraordinary. In this auction we are also able to connect to the auction Buy It Now (BIN). Thus, buyers looking for merchandise with two choices, ie Buy It Now through the list of our BIN or participate in the initial price is very low with no reserve auction. The Perception of scarcity Strategy will create a response most buyers to choose the Buy It Now. Options Buy It Now this also appears if the buyer looking for items of daily needs or buyers who do not like competition. In addition, no reserve auction, the buyer who won only one, while the losing lots and must wait for the same item, then in the end will choose to use the auction or Buy It Now purchase directly. This clever strategy is never revealed how much inventory we have and we can use various forms of strategies to achieve the objectives of maximizing the price and speed of the product.