Prof Jorge Entrep: Oft repeated theme to sell and create value via scarcity

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Oft repeated theme to sell and create value - scarcity

Nation building via learning and being the best in business

Being scarce creates demand; discount tells you are commodity and that you are desperate.

We learn of the story of wealthy man who offered $50,000 to have handmade watch be made for him  But the waiting list extends beyond 2028 and the watchmaker did not even bother to look at the tycoon   

On the other hand he saw a jewelry store selling at 70% discount   He appeared desperate.   The tycoon advised the jewelry owner to close the shop and post a sign by appointment only 3 a day.  By doing so, by being scarce the former discount jewelry achieved prestige and exclusivity.    Bein availalbe and discounting make you cheap

The moment you discount, the more you appear desperate.  Walk away and be scarce and unavailable.

Create a waiting list.

Scarcity creates value.   Being desperate does not.  

So the jeweller instead of 70% discount was advised to close the store and allowed sales by invitation only  Thats scarcity.  

Being scarce makes you valuable

 

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Blog: Prof Jorge Entrep
Post: Oft repeated theme to sell and create value - scarcity
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https://profjorgeentrep-jorge.blogspot.com/2026/03/oft-repeated-theme-to-sell-and-create.html

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Yes, the customer judges the company by its over, the first impression, the initial acts of kindness and warm CS that goes a long long way

Memorandum:

To        All Sbus

Thru:   Mam Madel

Date  March 24, 2026

SUBJECT:   Yes, the customer judges the company by its over, the first impression, the initial acts of kindness and warm CS that goes a long long way

1.  Yes, the customer judges you and your business by your cover:from:

     1.  Park appearance -  gate grounds, (no or plenty of litter or trash careless thrown 

          around

     2.  Personnel appearance -  the SG, the CSS, the receptionist,  the person who                     delivers service to him  her

         1.  Are they observing the office decorum -   id office uniform -  is there (what

             happened to last weeks discussion on uniform?)

         2.  Initial customer interaction -  was it courteous, cordial and friendly (or masungit

              hambog?  picky?)

2.  The customer service experience  (CSE)

      1.  If you put P5.00 in a machine and gives you back P100.00 will you put P5.00 again?                               Definitely yes.   If that machine is customer service, will you invest more?  definitely yes.   

           Or in ads and promo?

     2.  You cant be stingy on that initial contact, or deal.   Invest  P5.00 now and get

          P100.00 later.   No PNL on the initial deal but make one on future purchases-

          repeat sales or other merchandise.

     3.  So the free initially is a bait to get the customerr foot in:

         1.  Free haircut at Landers (to the holder of a membership card initial.  P1.00

              deal at Temu for initial purchase or Lazada), P99.00 tool box set worth P1,200

              for initial app sign up

         2.  Free coffee in coffee shop for first 50 customer for the day

         3.  First 30 minutes in a billiard free

         4.   Free rose for first 30 buyers in a flower shop

         AND THEN EARN MORE ON:

         1.  Repeat sales

         2.  LTV and referrals;  customer for life  (Carl Sewell)

         3.   Other merchandise sales

        The initial free is not a loss, it is an investment that returns 20x fold

         It may be against the math.  But what makes money for the business is sometimes

         not visible to the naked eye

       1.  IMPROVE CUSTOMER EXPERIENCE INITIALLY SO THAT HE/SHE HAS

            HAS LASTING PLEASANT EXPERIENCE MEMORY OF THE COMPANY;

       2.  INVEST IN CS AND HIGH CUSTOMER IMPACT EXPERIENCE

       3.  TRAIN TRAIN TRAIN PRACTICE PRACTICE ON CUSTOMER SERVICE

             EXPERIENCE

       4   THIS IS ENTREPENEURIAL A MAKERS/MULTIPLIER JOB

  

Get the trust first on first transaction the rest of LTV (long term value) of customers come later

Free or 50% discount on dent repair....

To be dominant in the competitive market, you have to impress the customer; give him the best deal on the first visit.  (Not in the middle or later)

It can help build trust.  Trust earns authority.  Authority enables you to dominate and get the rest of the customers business (Long Term Value) for life.  Customers for life

Make the first transaction memorable and remarkable.  Give the best treat to the customer on his first try.  Spend on the first visit.  Then for the rest of his relationship wtih us the customer will be kept and keeping him/her in our corals

This was the recommendation to a car dealership that has no customer.   

+  free carwash;

+  free inspection

+  free windshield wiper fluid

+  absolute honesty

Earns their loyalty, the go to store (memorial park)  What can we do for our memorial park business.  How is this move to be used.  

Just like a pastor who got his business from P20.00 xerox ad posted on windshield wiper...