There’s an old adage that says “The pain of losing is twice as strong as the joy of winning.”
This principle can help your business if you use it wisely. Even the threat of potential loss creates agitation in people that plays a powerful role in their decision making. Psychologists call this the principle of scarcity. It says that humans hold more appeal for things that they perceive will become less available in the future. This is why you see scarce items get valued at ridiculous prices. For example, a baseball card might be worth hundreds or thousands of dollars simply because there are not many of them in existence. The same goes for cars. The actual raw material value of the card or car is the same as any other with the same amount of raw materials used to create it. But, the value of the item is not in it’s physical worth. The value is in the possession of it.