Scarcity and Exclusivity

​Read online​

---

Credit for this story goes to Jonah Berger and his book Contagious¹

In 2005, Ben Fischman was CEO of SmartBargains.

It was a discount website selling everything from bedding to luggage.

Deals were great. Prices up to 75% off.

But by 2007, the buzz was gone.

Competitors cropped up. The site was floundering.

So Fischman tried again.

He launched Rue La La in 2008.

It sold the same products. Same dresses. Same shoes.

Yet Rue La La exploded, selling for $350 million a year later.

The secret?

Fischman understood the power of scarcity.

Rue La La was exclusive. Access was by invitation only.

It tapped into urgency: sales lasted just 24 hours, and stock sold out in minutes.

Suddenly, shoppers weren’t just browsing. They were rushing. They were excited.

The psychology was simple:

• If it’s hard to get into, it must be good.

• If it’s limited, it must be worth having.

​

The power of scarcity

There's an incredible wealth of evidence to back this up.

1️⃣ Jam sales² increase when limiting the number of options from 24 to just 6.

2️⃣ Cookies from a jar with two cookies³ is 43% tastier than those from a full jar.

3️⃣ Declaring “only 12 cans of soup per person" increases⁴ sales by 112%.

Fischman intuitively knew what the scientists had proven.

People don’t just want great deals. They want exclusivity.

And Rue La La didn’t sell shoes. It sold scarcity.

​

Know of anyone who needs to read this? Here's​ a link to share*

Cheers Phill!

​

P.S. I'm sending this email a day early as I have a big announcement tomorrow.

Stay tuned.