Have you ever wondered why in some shopping malls, some of the luxury stores have long lines of people waiting to enter, cordoned off by red velvet ropes?
It’s not that there isn’t enough room in the shop, or that there isn’t enough staff on hand to attend to customers. It’s because the company is capitalizing on the fact that artificially limiting people generates a buzz — a feeling that whatever is on the inside of that store is so special that it’s worth the wait, and worth draining that wallet.
Consider how certain clubs and restaurants work. They may be immensely popular, but they don’t increase prices, or their seating or standing capacity, to reflect the long lines out the door. Some customers fly hours across time zones, only to brave frigid temperatures and long lines waiting to buy a limited-edition luxury handbag only sold at a tiny boutique in Paris.