How To Use Scarcity and Urgency To Increase Sales - Sales Tips & Negotiations | Patrick Dang | Skillshare

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How To Use Scarcity and Urgency To Increase Sales - Sales Tips & Negotiations

teacher avatar Patrick Dang, International Sales Trainer

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Taught by industry leaders & working professionals
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Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

3 Lessons (10m)
    • 1. How To Use Scarcity and Urgency To Increase Sales - Sales Tips & Negotiations Intro

      1:00
    • 2. How To Use Scarcity and Urgency To Increase Sales - Sales Tips & Negotiations

      8:55
    • 3. Next Steps

      0:22
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About This Class

How many times have you found yourself in a sales meeting where everything seems to be going great, and the prospect even tells you they want to move forward with the deal.

But when it comes down to actually signing a contract… something always seems to stop the deal from closing.

Now, there could be several reasons why this happens.

But the most common deal-killer I've found is the lack of scarcity.

You see, people need a reason to buy right away.

Without a reason to make a decision, your product or service becomes a "nice to have."

And as you might have already realized a "nice to have" products or services are quickly forgotten.

So instead, what we need to do is create a sense of urgency to give the prospect a reason to make a decision NOW so you can close more sales.

Meet Your Teacher

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Patrick Dang

International Sales Trainer

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Hey, it's Patrick here!

Now, I’m on a mission to help everyday people to generate more sales for their business using the most cutting-edge B2B sales strategies.

After a successful sales career in Silicon Valley, I packed two suitcases and booked a one-way ticket to Thailand and started my journey with the aspiration of creating world-class online B2B sales training all while living a digital nomadic lifestyle.

And since then, I’ve traveled to many countries while creating programs training over +30,000 students in over 150 countries.

And over time, it became clear that no matter what country you’re from, what your background is, or whether or not you think you have the talent to sell...I’ve found that sales is a skill anyone can learn... See full profile

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Transcripts

1. How To Use Scarcity and Urgency To Increase Sales - Sales Tips & Negotiations Intro: everybody. What's going on? It's Patrick staying here now. As you know, sometimes when you're in sales, you want to close a deal with the prospect. Delays a deal, for whatever reason, right? They'll say, Oh, let's close the deal next month or O lets you know, do it later. And sometimes because they keep pushing the deal further and further away, baby, never closing. You never generate sale. So to solve this problem, what we're gonna do in this course is we're going to show you the power of scarcity, and we're going to show you how to apply this into your sale in scarcity. For those of you who may not be familiar with this is that you're basically creating urgency. You're creating a feeling of why someone should buy right now versus in the future, okay, And for a class project, make sure you share one key lesson that you took away from this course and share with the rest of the community. So that said, if you want to learn how to close your clients and make sure they follow your timeline by using the strategies of scarcity, make sure you enroll in this course now 2. How To Use Scarcity and Urgency To Increase Sales - Sales Tips & Negotiations: if you're in sales, you might be in this situation all the time. You go into a sales meeting, everything's going great. And at the end, the customer doesn't necessarily want to buy right away. And then a week might go by and a month might go by and they just never end up buying anything at all. And one of the challenges behind this is that it's because prospects or customers that you wanna work with, I don't have any reason to buy. Right now, it's a solve this problem. What we're gonna do is arena dive into one of the most influence show strategies that you can use in sales to get people to buy more quickly. And that is scarcity. Now to start things off with learning about scarcity. I got a little story for you, right? So there's this company called Supreme. Okay, so it's just supreme is a street wear brand. What they do is they make clothes like pants, jackets and a lot of different accessories. But here's a special thing about supreme. Every week they come out with new products, right limited edition products for their customers, and the customers who want these products. Every week they will line up in front of the stores and they will wait hours or even days in some cases to buy these products. And they also sell these products online and they just sell out immediately. Right away. You might be thinking Well, okay, they come out with limited edition stuff. Of course it sells out, but you gotta understand supreme. Some people actually value it over a 1,000,000,000 US dollars, which is absolutely crazy for Brown like this. So what's going on here? Why is it that people are lining up hours or days to buy these products? And really, if you really bring it down to why this is happening, it's all about scarcity. Okay? That the man for these products are high because the artificially create a sense of scarcity. Now, brand at this magnitude, can they create more products to fulfill their demand and make more short term revenue? Yes, they probably could. However, they keep the quantities low so they can keep that hype into the man high. And people feel like if they don't buy it right now, this week, they're never going to get a chance to buy it. again. And if they want a specific product, they're gonna have to buy it in the resale market at a premium. And people don't want to do that. So they line up to buy the products they want now because they feel again there's a scarcity. They're not going to get another chance. And this is all fabricated, right? And this is all created by business. People write that they created this sensation of scarcity. Now you might not be interested in clothes or streetwear or seekers, and maybe you don't even follow this world at off. But we can apply a lesson that's happening in the world and apply it to the way we are selling okay, and that is using the power of scarcity to get people to take an action. So let me start out with the problem that many sales people experienced. So the reason when the sales person goes in the meeting and they find that the prospect doesn't follow their schedule and by when they say they will buy is mainly because of prospect doesn't have a reason to buy now, right? What for the prospect? What's the difference between if they buy your product or service today, a month from now, six months from now. If they don't see a reason to buy right away, then they will just keep delaying because they don't want to spend their money right. And they're not sure on whether or not they should buy your product or service. So they're just gonna keep the laying the deal until they feel ready. And that's not good, because now the prospect is on their own timeline. When you want them on your timeline in the B two b sneer, I'm gonna give you example of how you can apply scarcity to get someone to follow your timeline so you could prevent the situation from them delaying the deal. Now, before we get started with this, I just want to make it clear that you shouldn't flat out lie to customers you shouldn't create like fake scenarios. Everything should be legit. Everything should be rial. But you can create more of a sense of urgency with your customers any ethical way. Okay, so let's give you an example. Let's say I am selling consulting services, okay? And I'm gonna charge, let's say $20,000 okay for a one time fee consulting services. 20,000 lives in this year. Let's say I feel it's fair. I'm okay with taking $20,000 I feel that the market values my services between $1000 So it should be a win win on both sides. OK, so I'm talking to a customer. Everything is going well. You got a problem? I got a solution. We're ready to move into negotiations on actually pricing. OK, now, if I want $20,000 right for my company as revenue, What I can actually do is I can increase the price when I go into these negotiations or when I'm talking to the customer. Right? So I personally want $20,000 as revenue. I'm gonna go to customer and I must say, Hey, look, the normal price that we typically charge our customers it's $23,000 this could actually be the truth, right? Charged $23,000. But I know I'm OK with 20,000. All right, so I go to customer. No more price. $23,000. Now, here's the technique that you can use to incentivize prospects to buy faster, right? So if I just said $23,000. They're gonna be like, OK, cool, right. And then you kind of just ends there. But if you say OK, look, I typically charge $20,000 but for people that actually can make decisions and they know what they want And I feel like it's gonna be a great relationship to work together, I can actually not the price now to $20,000 if you can get the deal done by B end of the month. So what? I'm what am I doing here? I'm creating a discount, and I'm saying this discount is only good until the end of the month. So if you want this discount, you want to save $3000 on something you probably will buy anyway. Sometime down the line U minus What? We just close by the end of the month, so you don't waste time. I don't waste time. And because none of us waste time less, resource is going to the deal. And that's why you get this special discount, right? So that's what's going on in the customer's mind, scientifically. When the customer here's this, they're going to say OK, that makes sense save a little money, close the deal faster, they get it. But they're going to say things like, huh? Can you say the discount for two months from now instead of one month, Right. They're gonna try to extend it as much as possible because they want time and they want to save money. But you are basically trading time for less money. Write What you want to do is you want to just say no, but you want to stay in a nice way. When the customer asked for this right, you could say I understand where you're coming from. I understand you want to discount, you need a little bit more time to close the deal, right? However, we can actually can't do that. The special pricing for people that can actually make the cities by the end of the month is gonna be $20,000. And you just reiterate why that price makes sense and you just have to justify it. Okay, once you let them know that the deal is only good for the end of the month and you stand really strong on your perspective on that Nationally, the customer is gonna be like OK, fine. I'll try to get the deal done by the end of the month. They might get it done by the end of the month, and they may not. Right. If they don't, you have to decide if you still want to give him the discount or not, or if you want to extend it or give him less of a discount. But that's essentially how you create that sense of urgency, right? Because before you offered a discount, they had no reason to buy this month next month or six months from now. But now, because you created a $3000 discount or in this example for at least the customer is a lot more incentivized to buy because there's a sense of scarcity and they could save more money if they don't take inaction. Now they are basically losing out on saving money. And again, that's idea of scarcity. If you don't act now, it's going to run out now. The cool thing about this is that you're not necessarily trying to trick someone into buying something they don't need, right. This is something that the action need and and you want them to get a discount and you want to be paid fairly and you want them to pay a fair price, right? It's a win win situation. And not only that, but instead of viewing sales as you know, the buyer versus the seller. And there's like this battle of negotiations of who can get the best price for what? What you're doing, it said, is you're putting both sides on the same team, right? You're creating this timeline and you're saying, Hey, I want you to get the best discount possible. I want to provide the best services and I want to make sure none of us waste time. So let's be on the same team and let's get this organized. And let's try to get this deal done by the end of the month so that you save money and we can implement our services for you and everybody wins, right? So instead of battling your customers and trying to nickel online, them instead, get them on your side and work together on making that timeline work more organized you are , and the more clear you are, and the more you lead as a sales person, it becomes a lot more easier for the prospect to follow, and that's exactly where you want to be. So go ahead and give this technique a try when it comes to scarcity and getting customers to close on your timeline. And once you do get results, let me know in the comments what these results are because I'm always curious to see how people are using these techniques in the field on their own. And one last thing for those of you who want to take your sales skills to the next level, actually create a free and death sales training Siri's to get access to this training, all you gotta do is click the link in the description, and it will take you there. So again, if you want more and death sales training in a structured way, that step by step and you want this absolutely for free, go ahead and click the link in the description, and I'll take you to that free sales training. So with that said, that's everything we have to cover for this video, and I'm going to see you guys in the next one 3. Next Steps: Now, if you're getting any value out of these courses, make sure to leave a positive review. Sharing your experiences. I read every single review, and I really do appreciate your feedback. And if you want to see more videos like this, make sure to follow me on skill share so you could be notified on when I release my latest courses.