MBA2262 How and Why You Should Always Sell Out + Free Ride Friday

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Hey oh. Welcome to the $100 MBA Show. Powerful business lessons you can count on every single day with our daily 10 minute business lessons for the real world. I'm your host, your coach, your teacher Omar Zenholm. I'm also the co founder of Webinar Ninja, an independent software company I started with my co founder back in 2014 and today is Free Ride Friday. On Free Ride Friday, as we give away a lifetime membership to one of our programs, we're giving away our automated Webinar Challenge so you can automate your leads and sales with automated webinars. It retails for $500 or you can win it for free. Just leave us an Apple podcast rating and review and you enter our weekly random draw. We call Free at Friday. Listen in on Friday just like right now to see if you won. We announce this week's winner a little bit later in the episode. In today's lesson you will learn how and why you should always sell out sell out of your product or service that is. This is something that took me some time to understand and to even implement, but once I started doing this, I realized the power of actually selling out your products and services. The reason why it took me so long and the reason why I think it's so important I need to teach this today is because conceptually, this is a hard concept to just understand in your head. But never fear, I'm going to break it down and give you real life examples of what happens when you make sure you actually sell out of your product or service when you're selling something. Now, I'm not talking about manufacturing this process. I'm not saying fake scarcity or lying to your audience. That's the worst thing you can do. The whole point of a business is to build trust with your audience, not to deceive them. But I'm saying build your promotions around ensuring you actually sell out. By the way, this is nothing new. This is something that big brands and luxury brands have been doing forever. There's a reason why you have to wait six to 18 months to buy a Tesla. There's a reason if you go to a Louis Vuitton store, you can't get three of the same bag. Why don't they just make more so they can sell more? That's not how it works. And I'll explain in today's episode and how you can do the same in your business to not only improve your sales, make more sales, but to create more demand in your audience so more people buy. So the next time you send out an email, your conversion rates to buyers goes through the roof. Let's get into it. Let's get down to business. Now, we all know that scarcity is very important and many people focus on the scarcity of time. Meaning you need to buy this offer, you need to buy my product or service, you need to buy my software, my coaching by this time or the offer will expire. You know, two days left, One day left. Last chance. We've all seen these emails, we've all sent these emails. And it's better to have some scarcity than no scarcity. But it's not as effective as product scarcity, unit scarcity, which is called in retail. Let me give you an example, a real life example. Let's say you are shopping for a pair of new sneakers. You walk into a footlocker or your favorite sneaker store and you see the pair you love. They have your size, but they only have one size left, meaning they only have one pair of your size. Now, which one would be more of a motivator for you to buy these pair of shoes? If they said, hey, this pair of shoes is on sale 20% off, we have plenty of stock, the sale ends in a few days, you know, by.

The end of the week, or this.

Shoe is not on sale, there's no discount there's only one pair left in your size. Are you more likely or less likely in this scenario to leave the store? Think about it. Possibly come back later in the week. There's no scarcity of time, there's no sale, there's nothing's going to expire. But there's only one pair left that you can buy and they check the other branches and there's no other branches with your size, just so that you know. So in scenario B where there's only one left of your shoe that you could buy in your size, this is so much more compelling than, hey, we got plenty of stock and you have a few days before you have to buy the shoe at this discounted price. We know this as consumers. We know that we buy that pair of shoes when there's only one pair left and it's exactly what we want. Even though it's not discounted, we can care less. I'm grabbing it before somebody else does. We know this as a consumer, we would make that choice 10 times out of 10. If we love the product, it's something that we want. But as sellers, as business owners, we often resort to the time restriction. We often say, hey, we have a 48 hour sale, a 72 hour sale. Buy this course, buy this training, buy this product before the end of the sale at this special price, we discount our products. Even we shortchange ourselves. Instead of saying, hey, I'm only taking on 15 students, I'm only taking on five new clients, I'm only selling five units, or we only have five units left. Now obviously this has to be real. You have to only sell to those numbers or those units. But that's far more compelling. In fact, recently I tested this out. Before I knew I was recording this show, I did an email out talking about our coaching program Mission Control in the past saying, hey, enrollment's open, you can sign up. And we had open enrollment. And yes, some people signed up, but there was no real urgency. I then recently sent out an email mentioning how many spots we have left in the program. We only have five spots. We only coach 50 people because it's one on one, but we have five spots open. Email the list. The next day, had to email this, he only have two spots left. And the day after that sold out. When there is no chance of buying and the doors are closed or the stock is finished. In our case, this increases the sense of regret or the perceived future regret. Hey, I better buy this or I'm going to regret it because I can't buy it. It'll be gone. So this leads me to anything you sell, you should try your best to limit the stock. I actually learned this back in the day when I had my e commerce store, Zenum Designs, custom clothing for men. I used to sell far less than I can produce and never discount as much as possible, right? But I practically never discounted the product because I didn't have to. Now, I learned this the hard way. I used to overproduce and try to sell my products by discounting and getting rid of things in what they call a clearance sale, right? But then I started to do the opposite. So to charge more and more, have limited stocks. I knew already by that point what sizes sell more than others, what colors, what, you know, styles. And my products were constantly on purpose selling out. And when they're sold out, I used to ask them to join my email list to be notified when we have more stock. Guess what happens when you email them and say, hey, we have a few more items in our stock that you could buy, items that you said that you were interested in, but we sold out before we have a few more units, they sell out even faster and the cycle repeats itself. I highly encourage you start doing this, but this doesn't work if you don't tell the audience. If you don't tell your list that you've sold out, a lot of people drop that ball. So let's say, for example, you are launching a new online course. Let's say you have an email list of 10,000 people and your guess is that, hey, from those 10,000 people, I can get 50 people to buy the course. What I like to do is I like to cut that in half and say, I'm only going to open it up for 25 students. Now you might be saying, omar, am I leaving money on the table? No, because you can open the doors again when you're ready. But now there is more urgency and more willingness to buy because they missed out last time when it sold out. So you say, hey, I'm only taking 25 spots for this cohort for the next six weeks or for the next two months or whatever you like and just be transparent about it with your audience. Once you sell 25 spots, you close the doors. You write sold out on the sales page, they're not allowed to buy. And you email the list and say, hey, thanks so much. We sold out all 25 spots. I will email you once we have availability again. What you'll find is over the course of time, let's say you do this every Two months, within six months, you do it over and over. And maybe you increase the numbers, but let's say you don't. You say 25 at a time, that's about 150 people over the year. Let's say every two months, you open the doors for 25 people. That's six cohorts. That's 150 people, right? Versus just saying, hey, I have opened an online course buy. And the 50 people you thought that expected to buy in your initial launch, they buy, let's say 50. You get lucky. But then you try to promote over and over and over throughout the year, and there's just no urgency, there's no reason to buy. You're not really giving them a reason. They may want to buy, but they're not really being pushed for their own good. So you might end up with 75 sales at the end of the year, half of what you would normally get if you make sure you have unit scarcity. And basically what you're doing here is that you're giving people a reason to join. Now, this is something that is known in all of sales. You got to give people a reason to buy now. And by making sure you sell out every single time, it gives them that reinforcement. I need to buy when stock is, is available, when it's time to get going. Because every time they sell out, this makes your product more desirable. It makes it more of a product to pay attention to and something that they're going to value when they buy. So I'm challenging you now for the next thing that you're going to promote. Put a unit scarcity to it, sell out. Even if it's just five people, five products, five units, three units, it doesn't matter. The reason why a lot of people resist this is because they feel like they're leaving money on the table, forgetting they're going to open the doors again. But now urgency is going to be even more. And every time you do this, the urgency gets more compounded and works in your business's favor.

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So you learned how and you learned why you should be doing unit scarcity and selling out your products and services every single time. Now. Another reason why I love this model is that it gives you iterations. It gives you a chance to iterate on your product, on your service, on your course, on your training, on your software. It doesn't matter. Not only are you iterating on the product itself because when you sell a certain number, you say you say 25 students for your new course. You can learn from them. You can learn from how they consume the course and you can improve the course based on their feedback. But you can also iterate on your promotion since you're promoting every couple months and now you can iterate on your copy. Iterate the way you present this copy. Maybe the bonuses, maybe you present the value in a different way. You can test and have more at BATS to see what works and what doesn't versus just launching and just saying hey by the way, we have this course. If you don't know you put a start putting in your footer, in your email list or on your email newsletter. No, you're actually promoting it as if you're launching again and again and again because you are. You have new availability, doors are opening. Get it now. So it gives you more at bats, more iterations, more chances to improve your product and your system of selling that product. Well, there you have it guys. Make sure you sell out. I encourage you to start doing this immediately in your promotions so that you can benefit not only now but months and years to come. Today is Free Art Friday, so let's see who won this week's free ride to our automated Webinar challenge. And the winner is. The Lost Art of Collaboration. That is the Handle on Apple Podcast. The loss art says, practical, usable, huge value, five stars. I recently became aware of the Hundred Dollar MBA show and if there's a single approach I absolutely love is the practical step by step approach providing value to the listener. I do a lot of leadership training and when I do this step by step approach, my clients get the most value. I'll be tuning in a lot more. Thank you so much. Thank you. The Lost Art of Collaboration. Your mission is to email me over at Omar MBA Net so I can hook you up with the lifetime membership to to the Automated Webinar challenge over@webinarninja.com AWC our $500 course on how to automate your leads and sales using automated webinars. If you wanna win a free ride, just leave us an Apple Podcast rating and review and you enter our weekly random draw we call Freeride Friday. Listen in on Friday just like right now to see if you won.

It's that easy.

Before I go, I wanna leave you with this now. Word of warning. When you sell out, you will get people emailing you, asking you, hey, is there any way you can get me in the back doors? Or any way you can let me buy this product, this service? Even though you're sold out, I would really appreciate it. You have to try your hardest to resist the sale. When somebody's begging, it's the easiest sale to make. But you have to keep your word. Otherwise you're going to lose trust and it's a slippery slope. Just let them know. I wish I can. We've sold out. I will email you as soon as we have openings and you'll be the first person to know. That's fair enough. That allows you to hold your word. They'll respect you and they'll understand. And of course they'll be ready to buy when it's time and you've opened the doors. Thanks so much for listening and I'll check you on Monday's episode. I'll see you then. Take care. Of.

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