I was in sales for a long time, now I'm on the operational side of things and manage the operational side of the company.
You're not wrong, but while there is competition there is also a fear of loss, while I think all sales are very similar in some cases giving the fear of loss can put somebody in a spot where they don't want to lose what you're offering and end up biting on the offer. I've had a lot of success with that "tactic". As for the creating more competition, that can also work in your favor, if you have a limited supply of a product or resources, the buyer may jump even faster at what you're offering.
If I was running say a basketball team I'd probably do a breakdown like this, only using star rating as an example (again, very simple):
Say point guard is an open position you know you're going to have. You have 6 guys you're watching, 3 are in one tier. Go after the 3 hard (but continue to show interest in the other 3), use the "ultimatum", nobody bites or they take other offers you at least have a fall back on the other 3 when you do the same with them. I may think our program is better than most but if there are 6 targets, I'm willing to bet that one of them will want to play for our school, especially if we have an opening with playing time available.
The past couple of years it just seems like there has been no plan and it's fill spots at the last, I'm not saying the one I wrote above is the best, but at least it's some sort of a plan. Showing up to a gym at the last minute doesn't seem to work or at least isn't a path of long term success.