Scarcity
Scarcity is a powerful force. I learned this lesson during my years in the Toy Industry. Everyone remembers the frantic run on Tickle Me Elmo dolls. By shorting the market, Tyco Toys put parents in a frenzy to secure an adorable Elmo for their child’s holiday. Mom & Dad went to extreme lengths and would pay any price. We saw the same process play out with various video game platforms as well. The inability to secure that Wii Platform made America want it even more, right? When we were launching V.Smile at the American Toy Fair, our Vtech Chairman, Jack Hirsh, had me add a key slide to our retailer presentation deck. It said “Production Cap 100,000 units”. Scarcity. A finite pie. The merchants from Walmart, Target, TRU and the others were no longer talking about if they would carry our new toy. The conversation was about their share. Jack was brilliant. He understood human nature and motivation. We were not even sure we could sell 50,000 units before that presentation.
But scarcity is not limited to toys. We have seen its power during the pandemic. First, it was toilet paper and Clorox wipes. And now, it’s the COVID-19 vaccine. In November of 2020 national surveys showed that only 57% of Americans said they intended to get the vaccine when it was available. But now, in March, more than 68% are saying they are intenders. What changed? A slow, unorganized rollout created a scarcity of vaccine appointments. Almost overnight millions of loud doubters changed their tune from “I don’t know if I’m going to get this” to “I should be able to get mine before those other people”. The nationwide hunt is on for the “golden ticket” vaccine appointments as human nature predictably prevails. I’m not suggesting the slow rollout was intentional. And it should also be noted that the greater public had the opportunity to see that the early vaccine recipients did not suffer any unacceptable adverse effects. But as we need 75%+ of the population to get vaccinated, herd immunity may have ironically been aided through a season scarcity. I can’t wait to get my appointment. I hope everyone else is equally motivated to go out and get the COVID vaccine when it is available to them.
