# NEVER lower your prices... ## Метаданные - **Канал:** Alex Hormozi - **YouTube:** https://www.youtube.com/watch?v=BZQtuK-ucDM - **Дата:** 04.10.2021 - **Длительность:** 8:50 - **Просмотры:** 117,665 ## Описание Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yta136 The easiest business I can help you start (free trial): https://www.skool.com/hormozi Business owners: Want to scale faster? We provide in-person advisory for companies doing at least $1M per year: https://www.acquisition.com/workshop-yta136 If you're new to my channel, my name is Alex Hormozi. I'm the founder and managing partner of Acquisition.com. It's a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I'll give you some stuff you can google to verify below. How I got here… 21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job. 23 yrs old: Left my fancy consulting job to start a business (a gym). 24 yrs old: Opened 5 gym locations. 26 yrs old: Closed down 6th gym. Lost everything. 26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time. 26 yrs old: In desperation, started licensing model as a hail mary. It worked. 27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months. 28 yrs old: Started Prestige Labs. $20M the first year. 29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months. 31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal. 31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it) 31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit. 32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses. 34 yrs old: I became co-owner of https://Skool.com, which is a platform for people to build communities online, making a living doing what they love, with people like them. 36 yrs old: I did a $106M book launch selling 3.6M copies of my $100M Money Models book, in 72 hours, breaking the Guinness world record for the fastest selling non-fiction book of all time. Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos). To all the gladiators in the arena, we're all in the middle of writing our own stories. The worse the monsters, the more epic the story. You either get an epic outcome or an epic story. Both mean you win. Keep crushing. May your desires be greater than your obstacles. Never quit, Alex DISCLOSURE Information shared here is for educational purposes only. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary. Copyright © 2025. ## Содержание ### [0:00](https://www.youtube.com/watch?v=BZQtuK-ucDM) Segment 1 (00:00 - 05:00) Boop. One decision. $5 million a year I lost as a result of this. I want to tell you about one of the scariest decisions I ever made in my entire life, which was when I had my gyms. I uh was selling a boot camp. Uh at the time, this is before I knew a lot about pricing and I was charging $99 a month. And I uh got really fed up at one point and I was like, I don't think I'm helping people. I want to have semi-private because this is where people are really going to transform their bodies and I want to sell with conviction, right? So, just keynote, side note, pro tip, life hack. If you can sell something that you truly believe in, you'll make a lot more money. And so, I had got to the point where I didn't really believe in boot camp um as a vehicle for personal transformation in terms of body-wise. And so, I was so convicted about our summer private program because clients were getting way better results there that I wanted to switch all my clients over that. Now, I couldn't do that at $99 a month. And so I sent a mass letter out to my customers that said we were going to go from $99 a month to $299 per month. So I was going to triple my prices, add more value, but prices. All right? And at the end of this video, I'll tell you what happened when I sent that email out. Now, what I want to do is tell you a secondary story of a similar situation that happened later on in my business career. All right? And it was we were selling our uh program at $42,000 per year. All right. Um at the time and that was being built at 800 bucks a week roughly. All right. And I uh wanted to decrease our churn. And so I've been I was trying to figure out a way to decrease our churn so we could extend, you know, increase our lifetime value per customer. And I kept, you know, all my team and all that stuff, they're like, "We have to lower our price. We price. " And I hate I hate lowering prices. I don't like lowering prices. it just generally doesn't mean you make more money. After a long time, I said, "You know what? Fine. We're going to add more and we're going to go to $600 per week. " All right, that's what we're going to do. All right, which if you're doing the math is like 31K. That's what I decided to do. Let me tell you what happened in each of these scenarios as soon as I made this change right here. All right, so what I did was I bid this big announcement. I said, "We're going to roll out this new uh additional services program. " And I did this huge presentation and this huge pitch. I stacked it and stacked it. And then I was like, "And you're gonna get all this stuff and you're all gonna get a discount. " And that's what I said. And everyone was like, "Yay. " I actually did have one person complain to me. Um they said, "Why are you doing this now? You should have been discounting us before, which just goes to show you that no one will ever be happy with what you're doing. I was literally saying that they can pay less. " And I got somebody upset with me. And so anyways, I decreased the price. And so this is what ended up happening. My churn remained completely unchanged and I lost $5 million per year in profit. Boop. One decision, $5 million a year I lost as a result of this. And so I can tell you firsthand most times when you lower your prices, you make a lot less money. And so what happened to me is that my overhead stayed the same. It actually went up a little bit. So, I added about 100K a month in in overhead to my business so that I could add for this new service. All right? And then I decreased my price by 25%. So, imagine cutting topline by 25%, which is literally what I did. And um by making this little beautiful combination, so I increased my cost by $1 million and I decreased my topline by $400,000 per month at the time for that business. It sucked because here's the beautiful thing. I thought, hey, if I decreased this price, if I can cut our churn by half, right, which is what I thought I was going to be able to do, if I could cut my churn in half, let's say from 10% to 5%, I would still 2x LTV. So, I'd rather decrease by 25% but then 2x LTV. I'll take that trade every time, right? Aha. But that's not what happened. Turn stayed the same. And I just lost 25% of topline, which if we were running a 50% margin business, right, I just lost half my profit, which we weren't. We were actually running a 70% margin business at the time, right? And so I actually cut my income by a third, which sucked for that business. It was not fun. I highly recommend not doing it. And so that was the first thing that happened. So let me tell you the story that I started with this puppy. All right? Where I had my clients and I told them all, "Hey, this is what we're going to do. I'm going to give you two weeks for free. " So, I did have to front this labor. Two weeks free of this new service. It's much better. You're going to get way more personalized attention. You're going to be lifting weights. You're going to learn form. All this type of stuff. And I said, after those two weeks, you're going to automatically all be enrolled at 299 per month. Let me know if this is going to materially affect your life and you won't be able to buy groceries as a result of this decision. So, here's what happened. Onethird of my customers left. They said, "Alex, you suck. I can't believe you're raising prices on us. Blah blah blah. Twothirds of them stayed at three times the price. What happened? I 2xed the revenue of my business and I serviced ### [5:00](https://www.youtube.com/watch?v=BZQtuK-ucDM&t=300s) Segment 2 (05:00 - 08:00) only 2/3 of my customers, which means my cost of fulfillment went down and my revenue went up. Excellent combination. And so by doing that one thing, I was able to more than 2x the profit of my business. And so I tell both of these cautionary tales as I was petrified to make both of these decisions. One of them dramatically increased the profit of my business. The other one dramatically decreased the profit of my business. In most cases, providing more value and charging a higher price in order to provide the higher value will make you more money because you will service fewer people at higher prices. The reverse of trying to service more people at lower prices by also providing more things most times will make you less money, especially in a service-based business. And so, I tell this cautionary tale because it makes me sick to think about it, but hopefully it uh it makes you sick to think about it. And if you're contemplating what should I do with my prices because I would like to increase my LTV, the LTV can be increased in six ways. All right. Number one, you increase your price. Number two, you decrease your costs. And then number three, four, five, six are resells get people to buy more times. Upsells get them to buy more of the stuff they're currently buying. Cross-ells get them to buy different things. Downsells get people who are not going to buy something. All right? So, this is you're buying burgers once a week. Now I want you to buy burgers twice a week. This is you go from a small burger to a big burger. This is would you like fries with your burger? a junior burger instead of your current burger so that you buy more or buy something instead of buying nothing. So these are the six ways that you increase LTV. You'll notice what I was trying to do was get more people to do this and I cut this and I lost. And so I tell this story to hopefully get more people to not make the terrible mistake that I did. Um, and I have learned that painstakingly. And most times I would say 99 times out of 100 when you lower the price you make less money. Sometimes you make more, but the vast majority of the time you make less. So, and I'll tell you one final thing to illustrate this concept that I think everyone should understand. So, let's say you've got a $100 thing here. And let's say your profit is 40 bucks. If you decrease your price to 80 bucks, right, on this product, you would have to sell two times as many people at this lower price because you have half the profit, right? Say this is cost. Most times, if you make this kind of change, you're not going to 2x your sales, but you will make half the money. So, make sure that when you're making these changes, and here's the flip side. If you were to take this and go to $150, right now you're making, let's say, we're now making $90. So, we more than 2xed our profit. You probably won't sell half as many customers. You might just sell threequarters as many customers uh and make two times the money, which means more than what you're making now. Small tweaks, big changes, lots of impact. think through these decisions. My name is Alex Ramoszi. I own acquisition. com. We have a portfolio company of $85 million in revenue yearly. My goal is that for everybody in this channel, there's a lot of people who are broke and I don't want you to be one of them. If you enjoyed this or you found value in this in your own business, hit the subscribe button so we can give you more vids like this. And if you did not, I love you either way. Keep being awesome and I'll catch you guys in the next vid. What? --- *Источник: https://ekstraktznaniy.ru/video/16617*