Mika’s Notes:
12.11.2023

Most businesses compete in a price race to the bottom.

Most businesses fail.

To prevent that from happening and have the businesses play in a league of their own, Alex created the ‘Grand Slam Offer.’

This is…

How Alex Hormozi Creates Irresistible Offers

Before discussing how Alex makes his Offers irresistible, we must get one thing out of the way.

Market.

This newsletter is part 1/3 covering ‘Pricing.’
The following two newsletters will cover:

• Part 2: ‘Create Your Offer’

• Part 3: ‘Enhancing Your Offer’

You can have the best offer in the world. If you are trying to make it a bad/ dying market, you’ll have a hard time making a living.

Step 1) Find Your Market:

The three main markets that will always exist:

1. Health:
   For Example:

   1. Fitness

   2. Nutrition

   3. Supplements

   4. Etc.

2. Wealth:
   For Example:

   1. How to make $10k/m

   2. How to Invest

   3. How to save taxes

   4. Etc.

3. Relationships:
   For Example:

   1. How to win in marriage

   2. How to be more successful in the dating market

   3. How to talk to women

   4. Etc.

→ Because there will always be pain in those markets.

What to look for in the perfect market:

1. Pain:
   They must desperately need what you are offering.
   Think Toilett Paper during Covid.

2. Purchasing Power:
   They must have the money to be able to purchase it. The best product won’t make you rich if you are trying to sell to college students (who are primarily broke)

3. Easy to Target:
   The best offer in the world is useless when it falls on deaf ears.

4. Growing:
   The Market you’re targeting must at least grow at a normal rate (The S&P 500 grows at an average of 9% yearly)
   For example, Newspapers shrink by 25% yearly (Bad Market)

We are not trying to create demand. We are trying to channel it.

With that out of the way, we can now focus on the good stuff.

The 3 things it takes for a business to grow:

1. Get more customers

2. Increase their average purchase value

3. Get them to buy more times

That is where what Alex calls the “Grand Slam Offer” comes into play.

Grand Slam Offer:

It’s an offer you present to the marketplace that cannot be compared to any other product or service available, combining an attractive promotion, an unmatchable value proposition, a premium price, and an unbeatable guarantee with a money model (payment terms) that allows you to get paid to get new customers … forever removing the cash constraint on business growth.

In other words, it allows you to sell in a “category of one.”

It allows you to sell your product based on Value, not Price.

Commoditized = Price-Driven Purchase (race to the bottom)
Differentiated = Value-Driven Purchase (sell in a category of one)

Step 2) Nice Down To Charge More:

Example:

→ Same knowledge/ information, targeted (niched) more specific
His recommendation, when you are below 10M, niche down.

Charge what it’s worth:

Getting people to buy is NOT the objective of a business. Making money is.

If you lower your price, you DECREASE:

• Emotional investment

• Perceived value

• Results

• Demandingness

• Revenue for fulfillment per customer 

• Profit

• Perceived value of self

• Perception of impact (results)

• Service levels

• Sales team conviction

If you increase your price, you INCREASE:

• Emotional investment

• Perceived value

• Results

• Demandingness

• Revenue for fulfillment per customer 

• Profit

• Perceived value of self

• Perception of impact (results)

• Service levels

• Sales team conviction

Higher Price Means Higher Value (Literally)

In a blind taste test, researchers asked consumers to rate three wines:

a low-priced wine, a medium-priced wine, and an expensive wine.

Throughout the study, the participants rated the wines with the prices visible.

They rated them, unsurprisingly, in order of their price, with the most expensive being the “best,” the second most expensive being “second best,” and the third, cheapest option, being rated as “cheap wine.”

They all were the same wine.

Thank you for reading my first ever Newsletter.

‘How Alex Hormozi Creates Irresistible Offers - Part 1: Pricing’

Summary:

• How to find your market

• What is a Grand Slam Offer

• Niche down to charge more

• Charge a higher price for a higher value

Make sure to be here the next two Sundays when we cover:

• Part 2: ‘Create Your Offer’

• Part 3: ‘Enhancing Your Offer’

Have an amazing day,

Mika “Chocolate > Caramel on McSundae” Langmann

P.S.:
Click here for FREE business consulting/ advising.