Serve less Make More - Raising your EFT | Ep 29
The Game with Alex Hormozi
Alex Hormozi
4.9 • 4.8K Ratings
🗓️ 5 November 2017
⏱️ 12 minutes
🧾️ Download transcript
Summary
"And it all comes down to making sure that our prices make sense." Today, Alex (@AlexHormozi) discusses the importance of raising EFT prices for legacy gym members and how to handle the situation with honesty and respect. He emphasizes the need to focus on profitability and offers tips on how to communicate the price increase effectively.
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 on his path from $100M to $1B in net worth.
Timestamps:
(0:51) - Careful communication for raising gym prices
(1:43) - Ethically explain need for profitability with price increase
(3:15) - Address concerns and negotiate alternative terms
(5:43) - Personally contact customers to discuss pricing changes and benefits.
(7:30) - Explain the necessity of raising prices for business growth.
(8:51) - Increasing blended average EFT for higher profits and capacity.
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Transcript
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| 0:00.0 | Hey guys, real quick. So Layland and I are definitely working on our social media presence if you guys haven't noticed and we're just breaking now into linked in. |
| 0:06.4 | Alright, it's not as bad as I thought. |
| 0:08.1 | It's actually been pretty awesome so far and you guys have been really cool in there and people are sharing our stuff a lot. |
| 0:12.2 | So if we aren't connected on LinkedIn, go ahead and let's connect and let's rock and roll. |
| 0:17.1 | Hey, what's going on everyone and welcome to the Jim Secrets Podcast. This is Alex and it has been at least a week since the last podcast. |
| 0:24.2 | So we've been crazy busy and we had a hurricane and Puerto Rico. |
| 0:28.5 | If you heard about that, it was nuts. Anyways, so I'm here with my lovely wife Layland. |
| 0:33.4 | We just had our dinner and date night and today we're going to be talking about an awesome topic about increasing your EFTs because that's what we talk about when we're at our romantic night dinners on day night. |
| 0:45.9 | But she was like, you should record this because like this is, this is useful. So I hope that you guys find this useful. |
| 0:50.9 | So I have a lot of gyms that we work with obviously and what happens is we give them an acquisition system that makes the money and then all of a sudden they've got half their members at a price that we tell them to put, which is usually 50 to $100 higher than what their old prices. |
| 1:08.6 | And then their gym gets to full capacity and they're like, I want to be making more but my gyms at full capacity. |
| 1:14.0 | And so we have to raise their prices. Right. And so they're like, but I have all these people who are grandfathered in there. |
| 1:19.8 | You know, they've got a lifetime thing. I told them I did a pre sale that was like lifetime low rate. |
| 1:24.6 | And now these people and then these people mean a lot to you and they should because there are a lot of these people in the core of your gym. |
| 1:29.8 | And hopefully this is resonating with you as a gym owner because I mean, I personally every gym owner there. |
| 1:34.6 | I talked to you has some core people that they sign up in the beginning and they've been there forever. |
| 1:37.8 | So it's like, you don't want to disenfranchise these people. |
| 1:39.9 | But you also don't want to go back on your word because you said, hey, I was going to give you this lifetime rate. |
| 1:44.4 | But what you have to kind of confront is there's really just one basic choice because once the gym is at full capacity, you have only X amount of space and X amount of sessions that you can fit. |
| 1:55.3 | That's like period. That's it. Right. And so you have to say, OK, either I am OK at this level of revenue. |
| 2:05.3 | Because you're full now or you have to basically go back to people and say, I made a mistake. |
| 2:12.0 | Right. Like I made a mistake because I didn't have all of the information that was necessary to make the decision that I like the correct decision for the business when I started it. |
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