You sat down yesterday for food and family, and maybe the “big game.” Now, someone in your family wants you to head out to the mall to get the “best” deal. It’s Black Friday. Last year, Sherzod Odilov described the “perception of scarcity” created by Black Friday sales tactics in Forbes, writing:
Whether shopping in store or browsing online sales, Black Friday is often marked by abundance—abundant advertisements, a wide variety of products and large quantities of stock being sold.
However, the time-limited nature of the best Black Friday deals and the competition among shoppers create a perception of scarcity. This sense of scarcity that Black Friday deals trigger is more than just a sales tactic. It taps into a fundamental human instinct—the desire for something rare or about to disappear. In fact, psychologist Robert Cialdini identified scarcity as a key principle influencing human behavior. When resources are limited, we inherently place greater value on them.
But beyond the Black Friday sales and deep discounts, what’s the real lesson here for business leaders? At its core, scarcity challenges us to rethink our resources and constraints, pushing us towards creative problem-solving. It’s not just about doing more with less – it’s about doing different with less.
Action Line: The real scarcity is time. You never have enough. If you’re spending time managing your investment portfolio and want to free that time up for family, friends, and your retirement life, email me at ejsmith@yoursurvivalguy.com.
