How To Go From Good To GREAT | Alex Hormozi EP 860

0:00Hi, my name is Lewis Howes and welcome to the Daily Motivation Show.

0:12here's the thing there is one person in charge of how successful how fulfilled and how happy you'll be in 2023 and beyond and that person is you that's right i've got some good news though i want to help coach you into living your greatest year yet for free in my upcoming training and i'm to break down the keys to create long-lasting change over the next 12 months and beyond. And you can follow through on pursuing your dreams. You can rewrite the story in 2023 and stop living out the same fears and self-doubt that has held you back for years. And you can take a major leap towards multiple areas of your life.

0:48But first, you just got to make sure you click the link and show up. Join me for this upcoming free training, The Four Keys to Overcome Your Fears and Achieve your biggest goals by going to lewishouse.com slash reprogram. Make sure to click the link to sign up and I can't wait to see you there. So there's four variables in the value equation. The first one is the dream outcome, which is, is the thing that I'm delivering fundamentally valuable? You've got dream outcome, which is the first variable. The second variable is the perceived likelihood of achievement. If you wanted to get plastic surgery and you had the option of two guys who are going to do the surgery.

1:24One guy has done 10 ,000 surgeries and one guy is fresh out of medical school. This is his first surgery. Which guy would you go with? Probably 10 ,000. It might even take this guy half the time to do the surgery as this guy. And double the price. Right. And it's double the price. Why? Because of the perceived likelihood of achievement. We believe that when we pay this man, we are more likely to achieve what we want. Even though the work is the same, probably longer on this side, but our perception of what we're going to get in a real way increases prior to purchase, which is the same reason that if you have like 20 people who told you that this restaurant is amazing, you're willing to pay way more even though you haven't experienced it yet.

1:58It's the perceived likelihood of getting the outcome. How is it that you have a 50 ,000, you can solve the same problem, let's say weight loss, because everybody understands that one. If I'm trying to help somebody lose weight, there's$50 ,000 solutions and there's$5 solutions. There's free solutions, right? $50 ,000 solutions, you can get liposuction, right? And get a full body lift and whatever. Not in a day. Right. Or you can get an ebook, you know, for five bucks. So the question is, why are these two things more valuable? And that, again, goes to perceived achievement. But if I went from the weight loss to, let's say, making money, if I had two things, in general, all the things in the making money category will be priced higher because there's a more direct ROI.

2:35So that's why between categories, dream outcome as a category can be higher or lower. But then once you're within a category, it's the other three variables. So perceived likelihood of achievement is number one of the other three variables. The next variable is underneath, which is the time delay. so between when i pay and when i get what's my delay there right so if i were to say using the weight loss example if you swipe your credit card and you look down at your stomach and you just have abs how valuable pay a lot for that exactly all we did was just decrease the time delay and so if let's say in a b2b example if you had a marketing agency for example and normally it's like okay you guys need to send me all this creative and we got to get everything spun up and it's going to take us you know 45 days to really get everything you know ramp we got to build a funnel and have a lot of people, right?

3:18Let's do a different example. We're on the same call. The guy says, cool, we're going to get you going. And you hang up the phone and your phone rings with a prospect. It's pretty big. Even if it's the exact same thing, 45 days from now, your phone rings with a prospect. Today, your phone rings with a prospect. How different is the perception of value? Phenomenally different, which is why the time delay is such a huge piece, which is why time to value, referencing earlier, is such a huge part of increasing the perceived value of the product. And then the fourth one is effort and sacrifice. And so effort and sacrifice are two sides at the same point.

3:49So effort, as I define it, are things that you must begin doing that you do not want to do, that you did not have to do prior to the purchase. And so sacrifice, I use as the equal opposite, which is what do I have to stop doing that I want to do that I would continue doing if I didn't have to stop eating milkshakes at midnight. Yes. And even in the B2B example with the marketing agency, well, now what do I have to do? I have to start making this every week. We have to start looking over these metrics. The hiring people, I got to what he had. Right. And so oftentimes, especially businesses, they think that their price is the most expensive thing that they have in the cost and it's not.

4:23If you've ever asked someone, hey, I'll give you my service for free and they said no, it's because there are other costs that you're not taking into consideration, which also means a lot of times your price has far more wiggle room in it than you think it does. And if you can decrease a much bigger hidden cost by asking for more money and you can solve a hidden cost, you can make more money and improve their experience at the same time. Right. And that's when you just make oodles and oodles of money. I think there's three variables that come into like how much you can charge, right? The first one is value or perceived value.

4:57The second one is how good you are at negotiating. You could probably put that as just persuasion in general. Because if it's a job, you might be negotiating. If it's a customer, you might be negotiating too, but it's persuasion in general. And that's a whole skill to develop on its own. 100%. And the third one is how unique it is. So that there's no easy alternative. Like, for example, let's say I provide something that's really valuable, unbelievable at selling. And then another guy is willing to just do all the same stuff for just less. Right. They cannot, and the goal should be with our services that we have, that no one can hold up our service and somebody else's and say, these two are similar enough, I'll pick the cheaper one.

5:33And so the goal is how can we differentiate ourselves in enough ways by looking at the value equation and thinking, what are all the things that are making this take longer and how can I remove them? What are all the efforts and sacrifices, even these micro things, these nuances that make things more difficult? And so like the small companies that are out there, they always focus on the first two things. Let me let me promise something really big. Let me show you all these testimonials. And that's all they do. Just promote these things. It's amazing. Listen to Sammy. It's amazing. Listen to Tommy.

6:00Right. That's all they do. But the biggest companies in the world focus on the bottom side of the equation, which is how can we make things faster and how can we make things more effortless? Like Netflix destroyed Blockbuster, not because they fundamentally changed the product at all. All they did was they made it happen immediately and from the comfort of your home, right? And so they just dramatically decreased the cost and effort that was associated with watching movies. And boom, they blew up. Jason Fladley said, you know, one of the easiest business models in the world is just look at what everyone else is doing and do it in half the time.

6:26If someone can cut your lawn in whatever amount of time, you clean houses, Say you can clean houses in less time because it's just less inconvenience when you're there in their house with cleaning. What are the hidden, what are all the things that people hate? Scheduling is probably a pain. Right. Hearing the noise is probably a pain, like silent cleaners. What are all the pains and problems that your customers complain to you about? And so like the goal is always in the support tickets. So when you talk about like obsessing about a customer, right, it's let's go through all the comments on the videos, right?

6:55Let's go through all of the support tickets that are coming in and those complaints inside of the complaints, sure. Like what you don't want to do is say like, well, these guys are all victims because then you lose all the power as a business owner by just blaming them. So if you just accept all of it, it's like as long as the thing that they're saying is not false, if it's unreasonable, then let's see if we can figure it out. Maybe no one else has figured out how to do this, but we might as well try. If you can approach it with like very open hands of like when you accept the feedback, it gives you the gold to really create huge breakthroughs in products and services.

7:35Thank you so much for listening to today's episode of The Daily Motivation, and I hope you have an amazing rest of your day. If you enjoyed this episode, make sure to click the link in the description. That will take you to the full episode of our main podcast on The School of Greatness. And if you are loving the daily motivation, please follow us over on Apple Podcasts and Spotify and leave us a review over on Apple Podcasts right now. And if you want more exclusive content and ad-free listening experience, make sure to subscribe to our Greatness Plus channel on Apple Podcasts right now. And if you want to get even more inspiration from our world-class guests and learn how to improve your life and take it to the next level, then make sure to sign up for the Greatness newsletter and get it delivered right to your inbox over at greatness.com slash newsletter.

8:31Again, have an amazing day, and I'll see you tomorrow with another episode of the Daily Motivation Show.

8:47Thank you.