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The Game with Alex Hormozi

Quick Tips on Pricing to Make More Money This Week | Ep 756

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.94.4K Ratings

🗓️ 30 August 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

"Put something on your menu that's 100x more expensive." In this episode, Alex (@AlexHormozi) shares a few quick frameworks and tactics on pricing that will immediately help you drive more profit no matter what product or service you sell.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.

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Transcript

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0:00.0

In this podcast, I want to give you a couple quick tips on pricing that will make you more money if you just do the stuff that I outlined in this podcast.

0:07.5

Enjoy.

0:08.5

Have something extremely expensive to sell that you never even plan on selling. I learned about this anchoring

0:15.1

tactic from a friend of mine and he said listen man you can just put something on

0:20.3

your menu of items or services that you sell that's 10 or a hundred times more expensive.

0:26.4

And just by having it there, it'll anchor everything else on your menu or the rest of the

0:30.6

prices that you have.

0:32.5

And just make it something that if someone actually bought it,

0:35.4

you'd be stoked that they did.

0:37.3

But what ends up happening is that, one,

0:39.9

you'll sell more people on your core offer

0:42.4

because they have this big price anchor.

0:44.3

Second, it allows you to nudge up your main offers price because related to the big one,

0:49.4

it looks like almost nothing. I was talking to a different friend of mine and I said hey you

0:53.4

know you should consider just adding one of these things in and he had a

0:56.1

weight loss business a very generic online weight loss business and so he

0:59.3

added a six times higher price version of his offer.

1:05.0

And then the craziest thing happened.

1:06.8

People started buying that more than his core offer.

1:10.2

And when he did that, he tripled his profit overnight.

1:14.4

And so the thing is that it also breaks you, especially if you're starting in business,

1:19.6

out of this fear of raising prices by just saying hey there's no there's no way

...

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