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The Game with Alex Hormozi

The Real Issue Holding Your Business Back | Q&A Ep 781

The Game with Alex Hormozi

Alex Hormozi

Entrepreneurship, Education, Business, How To

4.94.4K Ratings

🗓️ 23 October 2024

⏱️ 30 minutes

🧾️ Download transcript

Summary

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

Hello. I'll tell you this one story real quick and then we'll get into it. So I had a guy

0:03.7

a few months back and he was really excited to ask his question and he was like, hey, could

0:09.0

you go over the closer framework? And I was like, what's your close rate, man? He was like 40%.

0:13.9

And I was like, that's obviously not the constraint of your business. So you like traveled

0:19.8

across the country. You did the first day.

0:21.5

You came to the second day. And the one thing that you decided to ask was something that is not a

0:24.9

problem in your business. And the thing is I think it's really telling because a lot of us

0:28.9

work on the things that we like. And he just likes sales. But the reason that his business

0:34.5

wasn't growing was not because it had a lack of closing. It was because of other issues that he wasn't confronted.

0:39.7

There's four big issues that I consistently see because I've now had a lot of conversations.

0:44.2

These are strategic problems, not tactical ones.

0:47.2

So it's not like, how should I increase my show up rate?

0:49.3

How should I increase the closing?

0:50.8

How should I, you know, whatever?

0:52.5

They're usually rock and hard play scenarios, meaning that you're stuck because there's this thing where on either side there's

0:57.8

pain and so you just continue. And it's usually one is short-term pain is one is long-term pain.

1:02.7

The first most common one is that you're mispriced. This is where you're like, okay, I'm

1:08.2

at full capacity in my facility, but we're not making any money.

1:11.4

But if I raise my prices, then I'm going to lose my customers. What do I do? It's like, well,

1:15.9

if you continue, you don't make money. And if you raise your prices, there's another alternative

1:20.0

where you don't make money, but then you will eventually make money. These are common rock

1:23.8

and hard play scenarios. A close cousin of that is compensation, is that I've got

...

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