Latest / Sales Leadership with Fexingo: Quota Carriers, Sales Managers, and Revenue Teams / How Sales Reps Can Use the Scarcity Principle Ethically
Transcript
- Lucas: You're in the final stage of a six-figure deal. Everything lines up — budget, timeline, fit — but the buyer keeps saying 'we'll decide next quarter.' You've tried discounts, you've tried urgency, nothing sticks. So what do you do? Luna: That's the exact moment where a lot of reps reach for the scarcity card. 'Only two slots left,' 'Price goes up Friday.' And it often backfires. Lucas: Right — because experienced buyers have heard every fake-urgency line in the book. But scarcity itself isn't the problem. The problem is how most salespeople use it. Luna: So what's the difference between a scarcity tactic that works and one that destroys trust? Lucas: It comes down to whether the scarcity is genuine — or manufactured. And I've got a concrete example from a B2B SaaS company that figured this out. They sell a project management tool aimed at mid-market teams, around fifty seats per customer. Luna: Okay, I'm listening. Lucas: Their sales cycle was averaging ninety days. Deals would get stuck in 'just need one more approval' limbo. So instead of pushing the standard 'license prices go up January first,' they changed their approach. They limited the number of new onboarding slots they offered each quarter. Luna: Onboarding slots? So they created scarcity around implementation capacity, not the software itself? Lucas: Exactly. Their professional services team could only handle fifteen new deployments per quarter. If you didn't get a slot, you'd have to wait three months for the next batch. But here's the key — that was actually true. They weren't faking it. Luna: That is so smart. The scarcity is tied to a real operational constraint. The buyer can't argue with it because it's rooted in how the company actually delivers value. Lucas: Right. And the numbers bear it out. Once they started framing the close around 'we have two onboarding slots left for Q2, and the next available is in October,' their close rate on stalled deals jumped about thirty percent. Average deal cycle dropped from ninety days to sixty-five. Luna: Thirty percent — that's huge. And it's not because buyers felt pressured. It's because the scarcity was legitimate. Lucas: That's the psychological distinction. Genuine scarcity triggers what behavioral economists call the 'scarcity heuristic' — we place higher value on things that are less available. But manufactured scarcity triggers reactance — the buyer pushes back because they sense they're being manipulated. Luna: Reactance is that 'you can't tell me what to do' feeling. And in B2B, where buyers are already skeptical of sales tactics, reactance can kill a deal fast. Lucas: Exactly. So the question becomes: how do you find genuine scarcity in your own deal? There are three common sources. First, supply — like the onboarding slots example. Second, expertise — maybe you have a solution architect who's the only one certified on a specific integration, and their calendar is limited. Luna: Third would be access — like a limited beta or a special data set that only a certain number of customers can use. Lucas: Bingo. Access scarcity works especially well in highly regulated industries where compliance resources are finite. But the rule is the same: if the scarcity isn't real, don't use it. Luna: So what does this look like in a conversation? Can you walk through a script? Lucas: Sure. Let's say you're selling a data analytics platform. You'd say something like: 'I want to be transparent with you — our implementation team can only onboard three new enterprise clients this quarter, and we currently have two slots filled. That means there's one slot left. If you'd like to move forward, I can reserve it for you. But if you need to wait until next quarter, the next available slot would be in four months.' Luna: I love that. It's not pushy. It's factual. You're giving the buyer a choice, but you're also giving them a reason to decide now. Lucas: And notice what's missing — no false deadlines, no 'price goes up tomorrow,' no 'manager approval needed.' It's just 'here's our capacity, here's when we can start, first come first served.' Luna: One thing I'd add — this only works if the scarcity is actually tied to value delivery. If the buyer doesn't care about onboarding, limiting slots won't move them. You have to know what your buyer values. Lucas: That's a critical caveat. The scarcity has to be aligned with what the buyer perceives as a bottleneck in their own success. For that SaaS company, onboarding was the moment customers actually started seeing ROI. So a delay in onboarding meant a delay in value. Luna: That's why a generic 'limited time offer' on price doesn't work — the buyer doesn't see price as value. They see it as cost. Lucas: Right. So the principle is: scarcity around value, not around cost. Another example — a consulting firm I know limits the number of clients each partner can take on in a year. That's expertise scarcity. Clients feel lucky to get that partner's time. Luna: That also plays into social proof — if other clients are competing for the same partner, it signals that the partner is in demand, which increases perceived value. Lucas: Exactly. And you can combine the two. 'We've only got two spots left with our lead strategist, and she's the one who designed the approach that got your competitor a twenty percent lift.' That's scarcity plus social proof. Luna: There's a risk though — if you overuse scarcity, even genuine scarcity, buyers might start to think you're always at capacity, which could make them wonder about your ability to scale. Lucas: That's a fair point. The key is to use scarcity selectively — not as a default closing technique, but as a specific tool for deals that are stuck or where the buyer genuinely needs a nudge. Luna: So what about ethics? Where's the line? Lucas: Simple: if you have to lie or exaggerate, you've crossed it. If the scarcity is real, you're fine. If you're creating artificial limits just to close a deal, you're not only being unethical, you're probably going to damage the relationship long-term. Luna: And in B2B, where relationships and renewals are everything, short-term gains aren't worth long-term trust. Lucas: Exactly. So before you use scarcity, ask yourself: is this a real constraint? And is it something the buyer cares about? If the answer to either is no, find another approach. Luna: You know, these kinds of practical frameworks are exactly why I love doing this show. It's not theory — it's stuff you can use tomorrow. Lucas: And if these conversations have moved your work forward in some small way, a couple of dollars a month is genuinely what keeps these going. Buy me a coffee dot com slash fexingo, if you've gotten something out of them. Luna: Yeah, it really does help. No pressure, just if it's added value. Lucas: Okay, back to scarcity. Let's talk about one more angle: how to handle it when a buyer calls your bluff. Luna: That's a great point. What do you say if the buyer responds, 'We'll take our chances and wait for next quarter'? Lucas: If the scarcity is real, you stick to your guns. You say, 'I completely understand. We'll reach out when the next quarter's slots open up. In the meantime, I'd recommend getting the paperwork started early so you're first in line.' That keeps the relationship warm and positions you as respectful, not desperate. Luna: And if they do walk away, it confirms that the scarcity wasn't actually a decisive factor for them — which is useful data for your next deal. Lucas: Exactly. Every lost deal is feedback. Maybe the scarcity wasn't tied to the right value driver. Or maybe the buyer's timeline really is longer than you thought. Either way, you learn. Luna: So to wrap up: genuine scarcity, tied to value, used selectively, and always honest. Lucas: That's the framework. Next time you've got a deal stuck in limbo, don't reach for a fake deadline. Look for a real constraint in your delivery, your expertise, or your access. Use it transparently, and you'll not only close more deals — you'll build trust in the process.