How to manipulate the law of supply and demand…and make a lot more money

According to basic economic principles, the price of your product or service is determined by supply and demand. This is an unfortunate fact that many of us try to deny, but the science is there:

supply and demand

Supply and Demand:

  • P – price
  • Q – quantity of goods
  • S – supply
  • D – demand

The four basic laws of supply and demand are:

  1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity.
  2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.
  3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
  4. If supply decreases and demand remains unchanged, then it leads to higher equilibrium price and lower quantity.

I am not sure about you, but I don’t like these economic principles. I don’t believe they are true, and neither should you…unless you want them to be true for you. If you’re willing to think and act strategically, you can easily manipulate the laws of supply and demand. It should be surprising to learn, however, that by manipulating the laws of supply and demand, you can make more profit in less time and with far fewer headaches.

Manipulating supply and demand is actually not difficult since there are only two variables involved: supply and demand. If you’re able to gain control over these two variables, you will be able to gain control of your pricing and profit margin. Over the past 3 1/2 years, I’ve become a serious student of learning how to defy the Law of Supply & Demand, and the results have been staggering. Our average price of a website has gone from less than $1,000 to now over $4,000, and our margins have gone from less than 10% to routinely in the 30% to 40% range, all as a result of the lessons I’ve learned.

Lesson #1: Positioning Yourself as a Rare Commodity

Diamonds are a rare commodity, right? Wrong! Actually, some of the largest diamond producers in the world have vaults full of diamonds, and if they were to release them into the market, diamond prices would plummet. This perception of diamonds being rare began with brilliant marketing done by De Beers. You may have heard the famous tagline they coined: a diamond is forever. In fact, in 2000, Advertising Age magazine named “A Diamond Is Forever” the best advertising slogan of the twentieth century.

At the core, what De Beers and the other diamond companies did was position themselves in the way their prospects wanted to feel. They understood that their prospects wanted to feel successful, important, better than others, caring and committed. De Beers made sure that its position was aligned with what its prospects desired and then simply advertised to those desires.

What do you think would have happened to De Beers if its stores were in the bad part of town and had holes in the carpet, rude sales reps and one carat diamonds starting at only $10.00? If you guessed that they would immediately ruin the rare commodity status that they had worked so hard to obtain, you are exactly right. Yet, this is exactly what most entrepreneurs do. We work valiantly to position and market our product or service, and we destroy all our effort because of one or two simple things.

Lesson #2: Gain Control Over Supply

No, I’m not advocating that you partake in monopolistic practices although it’s reported that is the approach that De Beers took. It’s even been reported that De Beers purchased large supplies of diamonds from its competitors and simply stockpiled them in order to gain control over the diamond supply.

So, as an entrepreneur with a limited budget, what steps can you take to take control over the supply of your product or service to the market? Is it realistic for us to think that we could ever control supply? The answer is an emphatic “YES!” In order to do this, however, you must first give careful consideration and thought to your position in the market.

For example, I imagine Nick Swinmurns’ initial pitches sounded something like this, “Hey, I have this great idea to start a shoe store that sells shoes online. Would you be interested in being a part of it?” And then I imagine he heard a bit of silence…and a LOT of “NOs.”After all, who in their right mind would buy shoes without being able to see them, touch them and, most importantly, try them on?

Tony Hsieh, now famous for taking Zappos from a struggling company to a company with over $1 billion in revenue, almost deleted Nick Swinmurns original voicemail pitching him to invest in the company. Why? Because you can buy shoes anywhere! There is no way you can possibly control the supply…or is there?

If you’re familiar with Zappos, think for a minute about how they have controlled supply successfully. Got your examples? Here are mine:

  • Singular Access – You can buy shoes from thousands of places, but if you’re buying shoes from Zappos, there is only one place you can do that at, and that’s Zappos.com.
  • Seemingly Endless Inventory – Sure, you can buy a new pair of boots from your local boot store, but do they have 3,251 different boots from which you can select? I didn’t think so.
  • Surprisingly Remarkable Service – There’s nothing worse than going to a store to purchase those new boots and when getting there, having the sales rep to begin divulging all the reasons why today is the worst day of his life. You hear that on the way to his work, his car (which really isn’t his, but his girlfriend’s) broke down. He had to hitchhike to get to work, and, as luck would have it, the guy that picked him up knew his girlfriend. Not only did he know her, but he knew her very well…too well. Your sales rep proceeds to tell you all the details about the fistfight between him and his girlfriend’s other guy friend…and all the reasons why he knew all along his girlfriend was a tramp. All of this takes place while you sit, waiting for him to get the boots, and your two kids are busy destroying the shoe department. Zappos understood the drudgery (for some) of making a trip to the shoe store and the typically poor service delivered there. So, if you want surprisingly remarkable service when purchasing your shoes, you need Zappos.
  • Shocking Return Policy – Most are familiar with the now infamous Nordstrom tire return story. That’s the one where a customer came into the store asking for a refund on the tire they had purchased. Although Nordstrom had never sold tires, the clerk refunded the customer’s money. Shocking…right? That’s why the story has been shared and passed around for decades, but it’s a tribute to the exceptionally liberal return policy Nordstrom has in place. Zappos took a page out of the Nordstrom’s playbook when it came to structuring their return policy. You get a full 365 days to return your shoes…unless, of course, you purchase them on February 29th, which entitles you to a 4-year return policy. That’s right, you can wait all the way until the next leap year rolls around to return your shoes. Not only is Zappos liberal with the amount of time they give you to return your shoes, but they will cover the expense of shipping the shoes back. What other shoe store will match that return policy?
  • Shopping in Your Underwear – I’m not advocating it, but if you choose to do so, you can order your next pair of shoes while sitting on your sofa in your underwear. This makes shopping for shoes easy. And with free shipping both ways, what do you have to lose? They have made shopping for shoes on Zappos.com truly risk free. If you want the largest selection of shoes in the world, remarkable customer service, an industry leading return policy AND the experience of shopping while sitting in your pink polka dot underwear at home…then you have only ONE choice, and that’s Zappos.com. You see now how they control the supply.

Here’s how you control your supply:

Your Schedule

What about you? How can you control supply? Let’s assume that you are the proud owner of a marketing consulting business. You are the secretary, the IT guy, the salesman and the consultant. For the sake of this example, let’s assume that you are a little less than busy. Okay, let’s be honest. You desperately need a few new clients. The phone rings, you answer (which you shouldn’t be doing), and it’s your dream prospect wanting to schedule an appointment with you.

Your, and my, natural reaction is to say I can meet any day and any time you want to meet. In fact, if you say this, you would make a huge mistake. By admitting that you can meet with your prospect at any time, you are admitting that your schedule isn’t very full. If you’re admitting that your schedule isn’t very full, you are indirectly admitting that you must not be very good at what you do. After all, if you’re so great at providing marketing advice, wouldn’t your schedule be fully booked?

Don’t fret! The situation isn’t as dire as you may believe. You control your schedule, don’t you? You determine when you are available, right? Of course, you do. Although you may not have meetings with other clients and prospects, you should have appointments scheduled with yourself. You have to study the latest marketing techniques, you have proposals to write, phone calls to make and children to take to softball practice. You are busy! You only have a limited supply of time, so be sure your prospective client knows this.

Your Position

Becoming the most respected marketing consultant is a difficult challenge, one that I wouldn’t recommend attempting. However, becoming the number one direct response marketing consultant in the lawn care industry isn’t so difficult. Notice the difference? One is very vague and broad, and the other is very narrow and specific.

Trying to position yourself in the general market as the most respected marketing consultant is a lot like a novice mountain climber deciding to attempt to summit Mount Everest as her first mountain. This novice climber will quickly discover that she simply doesn’t have the stamina to reach the peak, and she will quickly give up on her lofty goal. This is exactly what most entrepreneurs do. They try to summit the biggest peak first, fail, and then lose hope.

The smart novice mountain climber understands his limits and picks smaller peaks to conquer before setting Everest as his goal. Once he summits his first mountain, he gains confidence, recognition and credibility as a true mountain climber. He is then able to use the skills and knowledge he obtained while summiting the smaller peaks to successfully climb Everest.

If you’re going to succeed in your chosen market, you must first position yourself as the one and only in your field. And the only way to do this is to pick a small market and lay claim to your title. By positioning yourself in this manner, you immediately gain control over supply while also manufacturing demand for yourself.

Lesson #3: Manufacture Demand

People like purchasing and doing business with those in demand. Think Apple, Lamborghini, the hottest club in L.A., Hotel Zaza, and Richard Branson. All are in demand. Everyone wants to either have one or be associated with one. If you carefully examine each, you’ll discover that all have premium prices associated with them. They have all successfully manipulated the law of supply and demand by manufacturing demand. However, Apple makes the easy case study on how to manufacture demand. Here’s how they manufacture demand:

Begin with Evangelists

They are brilliant at generating a buzz around the latest to-be-released gadget. Through careful study, you’ll discover that Apple always begins the process of manufacturing demand with their evangelists. They fill an auditorium with journalists, bloggers, and other influencers and then wow them with all the new features and benefits of the gadget.

Tell Them What to Share

At the Apple release events, every portion of the event has been carefully engineered and rehearsed to ensure one thing: that their evangelists understand the core message Apple wants to carry them back to their markets. Not only do they want them to understand their core message, but they also want them to influence exactly how it is communicated.

Plant Seeds

Have you ever noticed how before every big gadget release from Apple, a prototype of the gadget ends up getting left in a restaurant or club and magically ends up in the hands of a reporter? Coincidence? Maybe, but I doubt it. Although Apple would never admit it, I’d be willing to bet that these “accidents” are carefully planted by Apple.

Water the Seeds

It never fails that as an Apple release is drawing near, more information is leaked to their evangelists. They magically find fuel to add to their evangelists fire to help them spread the word.

Allow the Seeds to Germinate

Apple always announces the release of their newest gadget well before its release date. This gives adequate time for the evangelists to spread Apple’s message and for the critics to launch their attack. Having critics is vital to the spread of Apple’s message. This battle between critics and evangelists causes both to become more entrenched in their beliefs about Apple’s products. It causes their evangelists to passionately defend their beliefs and support of the soon-to-be released gadget.

What About You?

With your limited budget and limited time, what can you do to manufacture demand? The great news is that you can follow Apple’s process but on a smaller scale. The first step is to identify and understand your evangelists. You have to treat them differently than your regular customers. You have to give them access to and information about your new product or service. You have to tell them what message to spread and how to spread it.

Don’t complicate the process. Keep it simple. Just do it.

Lesson #4: Never forget Lesson #1

I’m serious. Don’t forget Lesson #1.

Conclusion

It all sounds too easy, doesn’t it? All you have to do is convince your clients and prospects that you are a rare commodity. But how can you pull that off with what you sell? DeBeers did it with diamonds. Many other companies, both small and large, have done the same with their products and services.

You just have to figure out a way to control the supply of what you produce or provide. That’s not possible with your product? Zappos could have said that too. After all, there are a million shoe stores, but they are the only one to provide the freedom and quantity that they do. What can you provide that others in your market can’t? And lastly, start creating your own demand.

“But this all sounds like conspiracy theories and shady business practices.” Keep telling yourself that while your competitors run off and start making their own demand like Apple did. So, yeah, it is easy. You just have to actually put these formulas into practice.

Do you have your own formula for controlling supply and demand or want to comment on the above post? Please share in the comments below.

About The author: Wayne Mullins is the founder of Ugly Mug Marketing and the author of So You Have a Website…Now What? Wayne and his team work with some of the biggest names on the web helping them stand out from the competition and make more money. You can read more on his blog.

If you want to break through to real profits online, you need some serious firepower. For a limited time I’m sharing some select tips and tricks Amazon, Microsoft, NBC & Hewlett Packard paid thousands of dollars per hour for, FREE.
  • The step by step guide to monster traffic generation
  • The how-to guide for increasing conversions on your website
  • 7 Cashflow killers your analytics tools are hiding from you
     
 
100% privacy, I will never spam you!

Comments

  1. Awesome Article, thanks Wayne for doing it.

  2. This is brilliant and such good advice for entrepreneurs to understand when creating their own strategies. One of your best articles yet!

  3. Richard Marriott :

    Great stuff Wayne! I particularly liked the last bit about planting seeds.

    This is a little hard to explain, but in a nutshell, I’m planning to launch a very niche website that’ll get a lot of traffic on one specific day this October when a huge PR stunt (I’m supplying for) will likely go viral on Twitter/Youtube. This one event should put my company on the map and drive business to us for the future.

    Questions is: Should I launch the site now so there’s at least something physical and indexed in google, or wait, plant seeds and go off with a bang at the same time the event goes viral?

    Many thanks :)

    • Thanks Richard. Tough to say without more info. Maybe go ahead and launch some form of “teaser” website – that provides hints as to what is coming. Maybe each week you could reveal a little more on the site?

      Feel free to reach out to me with more info, and I’ll be glad to help however I can.

  4. Great Stuff once again. I have learnt many new things as a startup and really gaining ample knowledge about how to start with a new product and how to market them?

    Thanks Wayne Mullins & QuickSprout for sharing great content.

    • Thanks Jiten! Keep learning…and never stop.

      “Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young. The greatest thing in life is to keep your mind young.” – Henry Ford

  5. Cool! I use the same Idea. I convince clients to mark their products as ‘premium’ and sell. Although, didn’t try it for Internet based businesses. I successfully used the idea for a ‘coffee shop’ and a ‘facility management enterprise’. The coffee shop business was on a great downfall while the facility management service was a startup (diversification from another related business).

    • I’m glad to hear that you have successfully applied these same principles in your businesses, and for your clients. Thanks for taking the time to comment.

      P.S. – you have some good content over on your site. Have you considered enabling comments on your posts?

  6. Thanks a lot for this inspiring article. Now I have to contemplate, how this could be applied to a lawyer business.

    • Do a google search for Ben Glass. He is a Virginia (U.S.) based attorney that appears to do a great job of manipulating the law of supply and demand. He even teaches other lawyers how to position themselves as “THE GO-TO” attorney in their area.

      I’ve never used or seen any of his materials, but I’ve heard good things about him.

  7. When I was in college, I was taught the same principles. After getting into business, I realized that it is the unique way of your company that makes it stand out of all the competitors.

    Totally agree, Supply and Demand are never avoidable factors of high profit and high money.

  8. Neil:

    Great article. It’s funny about stories and myths. I’ve heard the tire return story but it was Home Depot, not Nordstrom. When I was a GM at Home Depot, they gave out Gold Tires (and cash) to recognize GMs who kicked ass at customer service.

  9. Very interesting article. I am looking forward to applying these principals to my own business.

  10. Richard Morin :

    Wow, that is what I call a wake up call.

    thanks

  11. This is by far the coolest post I’ve every, ever read. You speak my language sir!

    • Thanks Tony! Let me know what you apply in your new business.

      • Well, just launched a new ebook into the kindle economy and try played with testing a little bit. I took it to a whole new level though. I manipulated price given a point on the linear demand function from when I first tested a free promo and then take the average to come up with another point on that same demand curve. After looking at maximizing revenue given the points I had and the slop of the demand curve, I figured out a good selling price. Although I didn’t that low in my price I definitely saw an increase in sales and I’m actually at a nice sweet spot averaging a good number of sales for the book daily. I actually used my economics degree whoa. lol :)

  12. Not sure if same marketing tricks apply to ‘diamonds’ and ‘websites’. Diamonds are a ‘perceived’ rare commodity and every one knows websites are not….and I wonder what stake holders at Debeers are doing by piling up so many diamonds (for no sales and interest), for a little profit of premium over sold diamonds…well, if that is so..I would love to study their strategy!!

  13. Very helpful, thank you sir :)

  14. A terrific post! THANK YOU, Wayne and QuickSprout!

    I’d add to “Lesson #3: Manufacture Demand”: There isn’t really a problem until/unless somebody says a problem exists. And better yet, gives it a label. And offers a solution.

    Example: In the local newspaper where I live, they recently had this big article – on the front page, mind you – about “manopause.” Apparently, a “manopause” is sort of like a menopause but for men, something that (some) men allegedly go through. The article featured a big picture of a middle-aged, average looking guy who allegedly is going through a “manopause,” with his doctor, attired in a typical doctor’s white coat, who is helping this guy with his “manopause.” Apparently, there is a clinic in our town that specializes in nothing else but helping men with their “manopause.”

    Which brings us to: “LESSON #3: MANUFACTURE DEMAND.”

    And that’s what that newspaper article was doing. Manufacturing demand, defining that demand with a label, and offering a solution.

    Never mind that the guy featured in the article was heavily overweight, totally out of shape, and clearly not into a healthy lifestyle. Oh no. He is going through a “manopause,” and we have a solution for him – a clinic and doctors, right in own town! (And how wasn’t he and his wife embarrassed to be featured, with his picture and name, on the front page of a newspaper?!)

    Which brings us to: There isn’t really a problem until/unless somebody says a problem exists. And better yet, gives it a label. And offers a solution.

    This actually is particularly striking when you go from one culture/country to another. I grew up in Russia. Growing up in Russia, we had, you know, the usual thing: kids running around, playing, boys showing off to get girls’ attention. The usual thing. But when I came to the US, I learned that there is thing called “ADD.” A problem. With its own label and definition. And a solution (drugs, therapy etc). And a whole industry related to it.

    The pharmaceutical industry is actually a great place to learn from. Used to work there. They’ve surely nailed down the process. I’d better stop before I get carried away…….. :)

    • WOW Olga! Thanks so much for sharing additional ideas, and further explaining how to manufacture demand. I really like what you said:

      “There isn’t really a problem until/unless somebody says a problem exists. And better yet, gives it a label. And offers a solution.”

      This is so true. And you’re right, the pharmaceutical industry is worth watching, and learning from.

  15. Thanks for this article, Wayne. Lots of take-aways for us. It is tough to get established and it requires loads of patience. But you are giving common sense tips that can pay big dividends over time. Getting to the point of standing out in the health field (my niche) is quite a challenge!

  16. This is a brilliant article Wayne,

    The story about De beers until this day fascinates me because not very many people know diamonds aren’t as rare, yet people swear by diamonds.

    Great article and thanks for sharing.

  17. Excellent advice and great points how to control the basic law, thank you for sharing worthy content :-)

  18. Excellent article, its the fine line of being available and not being available. Everyone buys with herd mentality, if someone is buying something and that is out of stock, it must be darn good.

    • I agree, there is a VERY fine line between being available, and not.

      In his amazing book Psycho Cybernetics, Dr. Maxwell Maltz, tells a story about when he first opened his practice – and he had no patients. When the phone finally rang, and it was someone needing his services, he did everything within his power to give the potential patient the impression that he was very busy and successful. (Particularly with the price he quoted.)

      If you haven’t already read it, I’d highly recommend grabbing a copy of his book.

  19. WOW you just broke down the ago old ideology agreed to by economists for hundreds of years and taught in Universities all over the world. I couldn’t agree more with you however that if you get control over these principles it would allow you to be able to profit wildly.

    • Great point Jason. Mastering the law of supply and demand can also result in significant monetary reward. Either way, you’ve got to devote the time and energy to master it.

  20. I’m totally down with the idea of perceived value, and have used it successfully in the past. But with my latest endeavor, I’m attempting to sell to a very cash-strapped industry (farmers) and I’m not sure how well “premium” services will sell.

    • You’re right Jordan, that is a very cash-strapped market right now. However, these principles can still apply.

      For example, there are a several tractor brands that are less expensive (at least initially) than a John Deere. But in many cases farmers are willing to pay more to get a brand they know and trust – like John Deere – even if it is more expensive.

      Try looking for opportunities to replicate the trust and reliability demonstrated by companies like John Deere.

  21. Wayne, the is a stunning piece of work. Great, accessible information. Conversation starter for sure. Fabulous!

  22. This is a great article. Wayne I would request you please to suggest some alterations for service industry.

    • Ritz Carlton and Hotel Zaza are two great examples from the hotel/hospitality industry. And both are worthy of study.

      Zappos is essentially in the service business. Their motto is: “Powered by Service”.

      You may enjoy the book The Discipline of Market Leaders. It explores what qualities/disciplines the leaders in various industries share in common.

      I hope these suggestions help!

      Let me know if I can help with anything.

  23. Hey this is the good way to make more money. Nice points given by you Neil. Good Work

  24. Perfect & worth to follow way to make lots of money. I like image taken here and help to better understand article. Thanks Neil for the brilliant job.

  25. This article is very timely indeed for me. I had done much of what you talk about, but without ever realizing it. the unfortunate thing is that I had fallen back to some old bad habits and started to show it in my business slowing down.

    This past month though has brought a redesign and relaunch of my business with a renewed focus (some of the redesign inspired by your article on how you redesigned your website) and this article places into the top of my mind the many things I had been doing that had made my business successful before.

    Now that I know what I had done right and what I have done wrong I can focus on the right and continue my climb back up.

    Thanks
    John Overall

    • Thanks for such an honest and sincere comment!

      After looking over your website, it’s very clear that you know your stuff – particularly when it comes to wordpress. You know more than 99.9% of the people in this world about wordpress… and you need to act and position yourself in light of that fact.

      You are an expert! From what I see, you are awesome at what you do. And now it’s time that you start believing it, and acting/positioning yourself accordingly.

      Here are few ideas to consider:

      -Allow your customers to speak for you. For example, you have positioned yourself as the WordPress Specialist, but how do visitors to your site know this is true? Try leading with testimonials to validate that you are the wordpress specialist.

      -Make it clear how a visitor can work with you. On your portfolio page, add a few buttons/graphics that say: “Like What You See? Click here to see what I can do for you.”

      -Carefully consider which slide you lead with on your index slideshow.

      -Consider revising your optin headline. Watch what Neil does, he is a master at getting optins. For example:

      Free Course: “Double Your Traffic in 30 Days” + Secret Bonus (Valued at $300)

      Thanks again for taking the time to read and comment. I wish you the very best!

  26. Hi Wayne !
    I really liked your article.
    I have one request : I have my own blog in french of which purpose is to help entrepreneurs who face difficulties. Would you mind if I translate your article in french ?

    Thanks in advance

    Olivier aka cOOdil

  27. Thanks a Ton wayne. Loved your article. My name is aiesha I run my own ecommerce website http://www.hourglassproject.com . I sell a lot of rare and expensive designer wear outfits and I am sure I will be able to market them better after reading you. thanks once again

  28. this is gettin’ super geeky. I love it!

  29. Thats an awesome post Wayne. I really appreciate your idea regarding seed planting. We can definitely apply the above concepts in our current business for better returns.

  30. Thanks for the awesome tips and insights…
    keep it up Wayne

  31. “Not sure about you, but I don’t like these economic principles, and I don’t believe they are true and neither should you.”

    Sorry, but I think I will take the work of Nobel Laureates over an internet marketer when it comes to Economics lessons. In fact, the VERY NEXT section goes into how De Beers were able to keep prices high using (potentially) monopolistic activities – which is a shining example that the laws of supply and demand hold true (see that upward sloping graph?).

    Good points throughout the article, but I hard a very hard time taking it seriously after that comment.

    • Valid points Brandon. I was (and still do) base my argument on the definition of the word Law. According to Webster,

      “Law: a statement of an order or relation of phenomena that so far as is known is invariable under the given conditions”.

      Based on the few examples used in the post I believe the Law of Supply and Demand can be manipulated – therefore, the outcome is variable.

      I agree with you though, understanding Nobel Laureates’ work is important when it comes success, particularly in business.

  32. controlling supply and demand……Pretty interesting idea…though seems difficult to implement at first for small companies but sure would like to try….

  33. As a computer science major, I had to take one economics class. This post reminded me of how simple economics was compared to some of the computer science classes I took. But, at the same time it is complex in its own way and more complex than computer science in some.

  34. I have recently launched a new clothing pret wear brand by the name of AQUA. Would really appreciate some of your guidance on how to carry the image further.

  35. Great article Wayne!
    You remind me 2 things:
    (1) I almost LOVE Amazon for their free shipping (over a very little sum compared to other free shipping sites) and hate all other stores that force me to pay.
    (2) Apple (maybe Steve Jobs) said that you do not have to ask to customers what they want, but teach them that they need exactely what you’re selling

  36. Lesson 1 is dead on accurate, and probably more important than the rest of the advice combined. I remember reading the “diamond scarcity” analogy as it relates to interpersonal communication, and it’s so true. Value yourself, value your time, and you will be seen by others as inherently important. This is good advice for all communication – friends, family, business, and more. Great read.

    • You’re absolutely right. Sadly most people don’t value themselves or their time…and ultimately this reflects in their perceived value to the market.

      P.S. – Love your website – and the work you and your team do. Also, I’m jealous that you have Zingerman’s in your “backyard”!

  37. this unfortunately wouldn’t apply as much to my field since i have lots of good competition, many of whom are even better than i am at mastering. the best I can do is slowly increase my rates as my business does better. and having a premium price can show that your product is superior to others

    • Some would argue that there was a lot of competition in the automotive world (but Lamborghini used some of these principles to succeed). The cell phone market was certainly flooded with competitors when Apple launched the iPhone. Some would say there where plenty of grocery stories when Whole Foods first started.

      I’m confident you can find a few ways to implement some of these principles in your business.

      Best of luck!

  38. I am into the academic writing business and I think I have learned a thing or two on how demand and supply works…this will definitely be beneficial

  39. As I can academic writer, I can borrow some relevant information from this article on demand and supply

  40. Another great post!! And i agree…the base of the process is lesson number one. It is the hardest to accomplish. So hard to have something unique and rare with low or easy to knock down competition…

  41. Great article! I really need a change in my perception of what my customers want.

    I especially liked the diamond analogy!

  42. Really needed advice for us to make balance in our business by applying Demand and Supply Concept.

  43. good tips, i`m happy i found this websit !! thanks !!

  44. Hello Neil,
    Excellent insight as usual….I always ask myself, how do you manage to research and write this much in detail…You experience speaks for yourself

  45. The law of supply and demand is key in almost any business, and especially in online business. As soon as demand goes up, and supply remains the same, the price goes up, if there is an over supply, and the demand remains the same then the price goes down. Look at expensive sports cars like Lamborginis, Ferraris, Aston Martins etc., the demand is very high, but they make relatively very few, so the price stays high. Of course there’s a lot of quality and above and beyond quality that goes into those cars compared to the average vehicle, but if they made as many lambos as they go GM cars would the price of a lambo stay the same? Of course not, it would go down, basic laws of supply and demand here :-)

  46. No doubt it is easier said than done. Once you think of the above principles implementation you see how hardly achievable they are.

  47. who does not like like to make more money ?

  48. Wayne, anyone that knows a bit about economics understands how to tweak the law of supply and demand. You are merely explaining (or revising) the reasons behind monopolies’ success, and why good marketing actually works.

  49. hey,
    Excellent post. I think demand and supply are two important parts of sale and consumption and we should maintain a balance between them.

  50. hey wayne mullins ,
    this is a great concept related to demand and supply. and i will never ever forget your Lesson# 4 :)

    thank you.

    Matt

  51. Hi!,,,,

    Thanks! You have a great cause to apply some of these principles towards! Let me know if I can help with anything.Thank you so much!,,,,,,,,,

  52. Hi this is kind of of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually
    code with HTML. I’m starting a blog soon but have no coding experience so I wanted to
    get advice from someone with experience. Any help would
    be enormously appreciated!

Speak Your Mind

*