Being an early adopter…scarcity is key

I love technology and marketing of technology products is unique. It’s not about mass market, but getting the influencers to buy your product and be “in the know”

A great example of this is Tesla who are producing an eye watering priced car (especially in the UK) to really fund the next level of development. If their is a big enough market for this price of car, you can help fund the R&D, infrastructure etc to make a more mainstream vehicle.

Apple and a number of other tech brands use this to seed the market and create a sense of desire that drives consumer adoption. It is no different to luxury brands that product a “discounter” product that is not the same as the one sold through their own channel but drives awareness of the brand.

This type of product marketing is fascinating but also full of potholes along the way. It is trying to control supply and demand but also create a huge amount of excitement for the product. Price pays an important part in this and certainly online I have found that most products sell more when you reduce the price, but controlling demand is more difficult.

There was a fascinating article today in the FT about Naked Wines potentially stopping taking angel commitments from its customers (it funds wine growing through a sort of savings plan for consumers) due to demand. Either this is a great example of an internet based business using crowdlending to fund its working capital cycle or a great example of marketstall tactics to create a sense of scarcity.

Seriously consider it within your online business.

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