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Episode #23: The Croissant Theory: Is this scarcity tactic right for your business?

Joann & Kyle, here!

We teach entrepreneurs the action steps to start, build, and open a profitable, sustainable product or service based brick and mortar business.

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Hey there, you know that concept called the “Croissant Theory”? Yeah, I had never heard of it either. But, it’s like this cool analogy between how businesses create scarcity and the way croissants are baked in small batches. Just as a bakery whips up a limited number of croissants daily to make them feel exclusive and boost demand, businesses can totally use the same idea for their stuff to increase sales.

So, think about it for a sec: in business terms, the Croissant Theory means making something seem super scarce on purpose to get people all curious and eager to buy. It’s like triggering those brain buttons that make customers see your thing as super precious and something they absolutely have to have.

This theory taps into some neat psychological stuff:

  1. Scarcity Effect: When folks think something’s rare, they value it more and wanna grab it pronto. Limited availability makes them feel like they gotta hurry up or miss out (yep, that good old FOMO).
  2. Exclusivity: People go gaga for things that seem exclusive. If you show a product or service as being super rare or just for a special group, they get all excited about being part of that cool gang.
  3. Social Proof: The whole idea that something’s hot ’cause it’s scarce creates this kind of social proof magic. If everyone seems to want it, you want it too, right?
  4. Anticipation: Ever seen a store announce a super limited-time offer or an exclusive release? It gets you all pumped up, right? That’s the anticipation bit, creating buzz and excitement.

And guess what? You can totally use this Croissant Theory in both businesses with things to sell and ones offering services.

But hey, let’s be real: it’s gotta be ethical and real. Trying to trick people with fake scarcity is a no-go. Being straight up about why something’s scarce and making sure it’s awesome quality is a must.

Kyle and I have been diving into this strategy and we’ve been trying a few tactics that we thought we would share with you today. It’s all about drumming up excitement, boosting sales, and making your thing look super special and valuable.

Ready for some cool ways to do it? Check these out:

  1. Limited Edition Products: Imagine bringing out limited-edition versions of your stuff, only available for a short while. These could be like special colors, cool designs, or collabs with other cool brands. Tell everyone they’re exclusive and won’t stick around for long.
  2. Seasonal or Time-Limited Offerings: How ’bout offering things just during specific times of the year? Think like a winter menu at a restaurant only for the holidays. It’s that pumpkin spice magic.
  3. VIP or Loyalty Programs: Get this, you could have a VIP club or a loyalty gang. They get access to special things like discounts or exclusive stuff. It’s like creating a loyal squad.
  4. Memberships for Service-Based Hustles: If you’re offering services, you could set up membership levels. Each level gets different perks, and by limiting spots, you make it super exclusive.
  5. Limited Spots Available: Works for products and services. Tell folks there are only a few spots left for something, and bam, urgency kicks in.

So, there you have it, friend. The Croissant Theory? We think it’s worth implementing at your business. Give one of these tactics a try and DM us to let us know how it goes! 🥐✨

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