I’ve been in construction for over 10 yrs. went off on my own this year for the second time. I’ve already raised my prices twice. Perks of being in a non competitive market. Everyone is busy but not everyone has changed thir prices. I’d rather have less stress from less customers and make more money per job.
2:15, 3:33, 7:33 Decreasing price usually doesn't decrease churn instead it just lowers the value associated with the product and lowers profits 2:35 Increase price to what most customers value the product at and it will decrease costs and increase profits and affirm the premium branding 6:09 Ways to increase the lifetime value of a customer in the order of importance (kiosk)
Because alex is practicioner not theoretist like all teachers in school who pretend to know everything but they don't know nothing except knowledge from college :D
That’s because school is primarily designed for you to show a grade of productivity, responsibility, and loyalty where you are groomed to work for someone else. Business ownership is interdependence, where as employment is dependence.
Same experience when I had my gym. Lowering my bootcamp price increased my churn. It was a stressful experience because I had to spend more money on marketing. I thought that by advertising a lower price would bring in more clients. That had a negligible effect. Perceived value. If it's a cheap price, then maybe it's a cheap product or service.
Thank you. That is, was and will always be my philosophy. My price is my price. I respect other people's prices and consequently my prices will be respected.
Loving these videos! One of the biggest problems with ANY price change is that business owners often make the change without testing anything first. You need to run an isolated pilot program or test different offers and the results before committing. Testing is the ultimate rule if you want to minimize risk/loss and maximize profits while gaining market intel.
I also made a bad desition, I wanted to lower our costs, so after testing a new provider for over one year, I switched providers. I almost lost all clients who kept calling me all day, for a simple configuration problem the new provider couldnt solve because the new technology was not compatible with most of our clients computers. 3 days later we had to go backto the old provider. I was lucky no client left.
I made the mistake of lowering prices when I owned a gym. Best results I ever got was an 8 week transformation program where I charged 2x my normal package, but included more accountability and supplements
I can feel the anguish and frustration in Alex’s voice about losing that $5M. My question is how the hell did he get back to his normal pricing after opening up Pandora’s box?
As a consumer and not a business owner, I avoid the lowest priced products or services. I lean toward the “you get what you pay for” purchase model. Jimmy Johns> Subway.
I guess in a way, this mean poor people are the worst customer in term of profit/operational complexity. In similar story, I was try to give away my old piano (worth around 5k-10k on amazon) for free since I was getting a new one. People were complaining that I didn't do free delivery of the piano. Learn my lesson, to at least charge $5-$20 buck when you want to give some thing away for free and just not take the money when the receiver arrived. It help as a filter out the high value receiver from high cost receiver where even being free is not enough.
While relatively low prices may be good for improving cash flow, not all business models are good with high prices, its depends on what your selling, Where do you sell it, and who is the target audience?
5:55 - 6 ways to Increase LTV Lifetime Value (from a customer) Price Costs Resells - Get people to buy more of the Same Thing (2x Burgers) Upsells - Get them to buy something Similar (Bigger Burger) Cross-sells - Get them to buy something Different (Fries with Burger) Downsells - Get customers who wont buy to buy something - something small - (Junior Burger) ! When you CUT the PRICE, you MAKE LESS !!!! 99/100x 7:30 - Summary
Hi Alex, great info thank you. I'm reading the book and note the pricing section about charging a premium to differentiate yourself. What do you think about free / freemium products and how they can meet your model? Thanks, Ollie.
I, as well as other people, used to go to a place where they make pancakes and hot dogs. I would buy hot dogs at 2.90 leva. Ever since he increased the prices and the hot dog went to 3.40 leva, I stopped buying and I no longer see people go there.
Six Ways to Increase Lifetime Value (LTV) Increase Price: Charge more for your product or service. Decrease Costs: Reduce the cost of delivering your product or service. Resales: Encourage customers to buy more frequently. Upsells: Get customers to buy higher-value products or services. Cross-Sells: Offer complementary products or services. Downsells: Offer a lower-priced option to customers who might otherwise not buy.
Ok so what your saying, for example in my detailing business I specialize in paint correction, ceramic coatings and vehicle customization.... but I still sell regular detailing services(vehicle cleaning). Since I truly believe that vehicles with great paint condition, that are protected for longer with the technology in ceramic coatings, I should focus on selling only those services because that is what my passion is?? I would love to do that, but most of my business as of right now is regular detailing. What would you recommend?
Helped a Dentist last month add $60,000+ on her practice. Hoe much do you think is the monthly recurring retainer if I can able to consistently produce this to her?
People don't want more retainers, but if you can consistently deliver value to her, I'd turn it into a process and continue to help her through it, as well as leverage her network to help you help more dentists.
What happens if you have a service based business where most of your clients are one and done, meaning no LTV? I own a criminal defense law firm where competitor pricing (project based, not hourly), is all over the board.
That's harsh. I usually make pr.ices higher, unless I really want to work with a specific client and they ask me for a discount (I'm B2B btw). Noted tho
bets guy out there, i have a question i run a farm business with low margin. should i transition to a completely new business model or upsell higher end products through my stream (question is what kind of products?)?cheers
A lot of potential there depending on what you're doing right now. I would breaking the categories down and going for one. Once that gets traction going for the next thing. Build it up slowly.
Last math section was wrong I guess. If you gain 40 dollars per customer let's say you have 60 customers . 40x60 = 2400 dollars. But in other way you gain 90 dollars per sale but you'd have 20 customers. That's 20x90=1800 dollars. Maybe I understand that wrong. Idk I just wanted to notify
How do you calculate a 150% increase? 100 customers at $40 profit each = 4000 75 customers at $90 profit each = 6750 Increase: 2750. 2750/4000 x 100= 68.75% increase. What am i missing here?
I had the same problem when I went out with a cheap ugly broad. Then I switched to a classy beautiful caring woman. Been married for 26 years and she is even better than before. Upsell works.
![Blox Fruits Dragon Rework Update [Full Stream]](http://i.ytimg.com/vi/EqDAp8udhm0/mqdefault.jpg)
Alex is my favorite RUclipsr hands down. One of the few actually running big businesses and talking about it!
True words have never been spoken!!
Wooo catch him! 🏎🏁
Bring him to your pod!🍾🚀🚀🚀
Yes sir…and without all the spammy tactics many others use.
Definitely needs to be on the podcast
Alex the invitation is open whenever you want to come on the podcast! We’re both in Vegas!
I’ve been in construction for over 10 yrs. went off on my own this year for the second time. I’ve already raised my prices twice. Perks of being in a non competitive market. Everyone is busy but not everyone has changed thir prices. I’d rather have less stress from less customers and make more money per job.
2:15, 3:33, 7:33
Decreasing price usually doesn't decrease churn instead it just lowers the value associated with the product and lowers profits
2:35
Increase price to what most customers value the product at and it will decrease costs and increase profits and affirm the premium branding
6:09
Ways to increase the lifetime value of a customer in the order of importance (kiosk)
I learn more watching alex than school. Appreciate these videos bro
Because alex is practicioner not theoretist like all teachers in school who pretend to know everything but they don't know nothing except knowledge from college :D
@@ourdan14 Facts these teachers don't even own businesses
That’s because school is primarily designed for you to show a grade of productivity, responsibility, and loyalty where you are groomed to work for someone else. Business ownership is interdependence, where as employment is dependence.
That's because school prepares you to be a worker NOT an owner.
@@ourdan14they only know HOW to do it but have never DONE it. Big difference.
Same experience when I had my gym. Lowering my bootcamp price increased my churn. It was a stressful experience because I had to spend more money on marketing. I thought that by advertising a lower price would bring in more clients. That had a negligible effect. Perceived value. If it's a cheap price, then maybe it's a cheap product or service.
Thank you. That is, was and will always be my philosophy. My price is my price. I respect other people's prices and consequently my prices will be respected.
Alex I would say it's one of my mentors, I really try to stay on track with every word you spread. Keep it up brother
Loving these videos! One of the biggest problems with ANY price change is that business owners often make the change without testing anything first. You need to run an isolated pilot program or test different offers and the results before committing. Testing is the ultimate rule if you want to minimize risk/loss and maximize profits while gaining market intel.
“I highly recommend not doing it” 😂😂
This video cost Alex $5M to make so it's gotta be valuable
I can’t believe this content is free. We just dropped our prices on a promotion and the results were very similar. Now I know why....
Hey Alex, if you ever read this please know how much I appreciate your content. Thank you so much!
I also made a bad desition, I wanted to lower our costs, so after testing a new provider for over one year, I switched providers. I almost lost all clients who kept calling me all day, for a simple configuration problem the new provider couldnt solve because the new technology was not compatible with most of our clients computers. 3 days later we had to go backto the old provider. I was lucky no client left.
I made the mistake of lowering prices when I owned a gym.
Best results I ever got was an 8 week transformation program where I charged 2x my normal package, but included more accountability and supplements
I literally just said to you my team last week, thank you for the reassurance on not lowering price to increase business, Alex.
Your channel is gold man.
I'm a smart dude, but you just BLEW MY MIND in
I hope people realize how much most people pay to get information like this.
Hey Alex. Thanks for this video. It saved me $4.6k!
Adding a smaller package works too
I can feel the anguish and frustration in Alex’s voice about losing that $5M. My question is how the hell did he get back to his normal pricing after opening up Pandora’s box?
started selling the old price again and grandfathered all the people i had discounted.
As a consumer and not a business owner, I avoid the lowest priced products or services. I lean toward the “you get what you pay for” purchase model. Jimmy Johns> Subway.
Bro I was so with you until you said Jimmy Johns… Who even eats there?
Try Publix subs
I guess in a way, this mean poor people are the worst customer in term of profit/operational complexity. In similar story, I was try to give away my old piano (worth around 5k-10k on amazon) for free since I was getting a new one. People were complaining that I didn't do free delivery of the piano. Learn my lesson, to at least charge $5-$20 buck when you want to give some thing away for free and just not take the money when the receiver arrived. It help as a filter out the high value receiver from high cost receiver where even being free is not enough.
Wow this is an excellent idea!!!! Thank you!
While relatively low prices may be good for improving cash flow, not all business models are good with high prices, its depends on what your selling, Where do you sell it, and who is the target audience?
Great and easy concepts to understand. I'm so glad you came across my YT feed!
Alex to the moon. 🚀 reading and listening to the 100M offer on my honeymoon and I’m diggggging it!
Alex, thank you for beautifully explaining that lowering your price is always a race to the bottom.
Valuable video, Alex. Always learning so much from you! Lowering your price is rarely a good idea. 👍
I agree, didn't work for me. Everything stayed the same people who will buy will buy for the value not the price
Learning so much from you Alex! Thanks for giving this for free!
One of the best videos, straight forward, makes perfect sense
Alex thanks for this. I followed your advice and it increases revenue every time.
Nice advice! Will definetly be applying this in my business in the future.
Thank you so much for making this video
Nice one Alex! Another awesome and very helpful video. So happy I found your channel 🙏🏻
Just found your content, super nice. Dropping that algo comment.
5:55 - 6 ways to Increase LTV Lifetime Value (from a customer)
Price
Costs
Resells - Get people to buy more of the Same Thing (2x Burgers)
Upsells - Get them to buy something Similar (Bigger Burger)
Cross-sells - Get them to buy something Different (Fries with Burger)
Downsells - Get customers who wont buy to buy something - something small - (Junior Burger)
! When you CUT the PRICE, you MAKE LESS !!!! 99/100x
7:30 - Summary
Your entire content is gold
Apple definitely believes in this lol. Makes sense why they're a 2 Trillion dollar company.
I’m watching this after he made his books $19.99 instead of $29.99 lmao. Yes I know it’s not the same but funny.
Why do I love this so much?
How do we get the customers to pay for the ads directly? Serious question. Need help asap. Advertisement is expensive
Gold as always Alex! Added this to faves.
Dude!!! You're dropping gold on our laps!
I love you Alex. Thanks for all you do!
I needed to hear this. Thank you 🌺
so takeaway is lower your prices when you actually have lower cost base, and make you customer benefit from your incremental margins
Another amazing video. 👏
Hi Alex, great info thank you. I'm reading the book and note the pricing section about charging a premium to differentiate yourself. What do you think about free / freemium products and how they can meet your model? Thanks, Ollie.
Good advice! How do you draw like that? What do you use?
Thanks for the lesson teach!!!
Great stuff Alex! Thank you so much for sharing!
thanks for allowing me to learn from your lessons
Who is paying 800$/week for workout trainings? Serious question.
I, as well as other people, used to go to a place where they make pancakes and hot dogs. I would buy hot dogs at 2.90 leva. Ever since he increased the prices and the hot dog went to 3.40 leva, I stopped buying and I no longer see people go there.
Thanks chief
Disney has DEFINIETLY been listening
Six Ways to Increase Lifetime Value (LTV)
Increase Price: Charge more for your product or service.
Decrease Costs: Reduce the cost of delivering your product or service.
Resales: Encourage customers to buy more frequently.
Upsells: Get customers to buy higher-value products or services.
Cross-Sells: Offer complementary products or services.
Downsells: Offer a lower-priced option to customers who might otherwise not buy.
So good! Love how Alex simplifies such amazing business lessons!! Thank you!
Love these ideas!
doesn't work in used car vehicle sales, trends, demographics and cycles are more of a market determiner, but in service businesses I agree though
Quality content
This shit is so useful I love this channel
Solid counsel!
just wow, man the way in which you think is just insane, wow
this is the type of guy that makes me keep notes when he talks.
Thank you Alex!
Making breathrite strips ok to wear during the day. Lol
Ok so what your saying, for example in my detailing business I specialize in paint correction, ceramic coatings and vehicle customization.... but I still sell regular detailing services(vehicle cleaning). Since I truly believe that vehicles with great paint condition, that are protected for longer with the technology in ceramic coatings, I should focus on selling only those services because that is what my passion is?? I would love to do that, but most of my business as of right now is regular detailing. What would you recommend?
Thanks alex
Appreciated Man
Epic content as per usual
Thanks Alex
just found this guy.....he´s a fucking legend!
The master has spoken 🙌🏻
amazing video once again! Alex do you record that writing on the right over like an Ipad or something along those lines?
Always value shared here 🔥
Sweet and solid advice.
Helped a Dentist last month add $60,000+ on her practice. Hoe much do you think is the monthly recurring retainer if I can able to consistently produce this to her?
People don't want more retainers, but if you can consistently deliver value to her, I'd turn it into a process and continue to help her through it, as well as leverage her network to help you help more dentists.
10% seems fair if you continually do that
4:30 what to say
Will it work on em?
Value is off the chain
A great lesson for life
What happens if you have a service based business where most of your clients are one and done, meaning no LTV? I own a criminal defense law firm where competitor pricing (project based, not hourly), is all over the board.
To add… I’m in a very competitive market, ie lots of lawyers
holy shit this video was amazing
Your the man alex
That's harsh. I usually make pr.ices higher, unless I really want to work with a specific client and they ask me for a discount (I'm B2B btw). Noted tho
This is a great way to see how you can 2x your revenue... the math doesn't lie.
great point
You also have to target the right people. You can’t have a $100k offer and target people who are working for minimum wage.
contradiction in the same video. Did you catch it?
Yoi are awesome Alex.
I really want to know what that bandaid is for
bets guy out there, i have a question i run a farm business with low margin. should i transition to a completely new business model or upsell higher end products through my stream (question is what kind of products?)?cheers
product businesses are a different animal
A lot of potential there depending on what you're doing right now.
I would breaking the categories down and going for one. Once that gets traction going for the next thing. Build it up slowly.
GOLD
Last math section was wrong I guess. If you gain 40 dollars per customer let's say you have 60 customers . 40x60 = 2400 dollars. But in other way you gain 90 dollars per sale but you'd have 20 customers. That's 20x90=1800 dollars. Maybe I understand that wrong. Idk I just wanted to notify
3/4 the customers at 50% higher prices (2.2x profit) = 150% profit increase with fewer customers
@@AlexHormozi Yeah I got it now thanks Alex. I heard it wrong. Appreciate ya
How do you calculate a 150% increase?
100 customers at $40 profit each = 4000
75 customers at $90 profit each = 6750
Increase: 2750.
2750/4000 x 100= 68.75% increase.
What am i missing here?
@@JarlDuoMusic my bad
Super good!!
I had the same problem when I went out with a cheap ugly broad. Then I switched to a classy beautiful caring woman. Been married for 26 years and she is even better than before. Upsell works.
Thank you..needed this. >∆
Thx
Please who has bought his book? Can't seem to buy it.
on amazon kindle for .99
@@AlexHormozi
Tried it but it seems it is not available for my country. Any other options?
@@AlexHormozi "I have nothing to sell you." (Please give me your card details though) 🤫
@@mmarelated2034 He runs a 100mill company. 99cents isnt selling for him. Lol
What kind of strip is that? (Not a joke)