Rich People Buy Differently (So Price Like It) | Ep 949
3/3/202644 min
Want to scale your business faster?
Join our 2-day, interactive workshop: https://www.acquisition.com/workshop-yt-d?el=yt-alex-485w&htrafficsource=youtube
Most business owners aren’t “bad at business.” They’re just selling to broke people and then act surprised when the close rate is trash, churn is high, and customers complain nonstop. In this episode of The Game, Alex breaks down the uncomfortable truth: if you want to make money, you have to go where the money is. A small percentage of buyers control a massive percentage of the wealth, which means if you price and position your business for “everyone,” you end up building a business for the people who can’t pay. The goal is simple. Pick a better customer, build a bigger offer, and charge in a way that makes you more money with fewer sales.
YouTube Timestamps
00:00 Why businesses struggle to make money
04:32 Applying the Pareto principle in profits
07:21 Top-down business and pricing strategy
16:10 Sell to the rich - they pay better, complain less
28:47 Picking price points: value over cost
32:50 How close rates reveal underpriced commodities
38:41 Stop selling commodities and raise prices systematically
More Value:
Discover The Easiest Business I Can Help You Start (Free Trial): https://www.skool.com/hormozi
Join The In-Person Scaling Workshop In Las Vegas: https://www.acquisition.com/o-vegas
Download your free $100M scaling roadmap here: https://www.acquisition.com/roadmap?el=yt-alex-486r&htrafficsource=youtube
Get the $100M Book Bundle: https://shop.acquisition.com/pages/100m-book-bundle
Take the $100M Lead Generation Course: https://www.acquisition.com/training/leads?hsLang=en
Learn How to Make Offers People Cannot Refuse: https://www.acquisition.com/training/offers?hsLang=en
Follow Alex Hormozi’s Socials:
LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition
Transcript preview
First 90 secondsAlex Hormozi· Host0:00
You aren't making as much money as you want because you don't know how to get it from the people who've got it. My name's Alex Hormozi. I run a portfolio of companies at acquisition.com that generates over two hundred and fifty million dollars per year. I did a book launch twelve weeks ago that did a hundred and six million dollars in sales in a weekend and broke a Guinness World Record for the fastest-selling nonfiction book of all time. In this video, I'm gonna explain a core shift in my understanding of how getting money actually works and why the rich do in fact get richer, and I'm gonna show you the math behind it and most importantly, how you can gain access to it. The first reason that you aren't making as much as you want is because you're selling to people who don't have the money to give you. So think about it like this, and this is really important. Imagine this pyramid as a representation of earning in the United States. What percentage of the people do you think earn forty percent of the income? The top ten percent earn forty percent of the income in the entire US. Now, that's income, and that's pretty extreme, but it's not even close to the difference when you look at wealth. So US household net worth, okay, this is the value of their assets, last year was one hundred and sixty-three trillion dollars. And you're like, "Man, how am I gonna pay rent?" I'm like, "Let's get some of that hundred and sixty-three trillion." So this is going to blow your mind. So I want you to imagine that you had a hundred dollars, okay? So I'm gonna equate this hundred and sixty-three trillion is now one hundred dollars, okay? And we're gonna spread it out relative to how it actually is spread