Welcome to octavianto.com! Let’s continue our previous discussion.
Hormozi suggests taking it one step at a time, choosing one market, and then really focusing on it. It’s okay if you don’t see immediate results, and it’s perfectly fine to stick with it and not jump from one thing to the next. The best thing to do is to stick with one market for a while, learn all you can, and then you’ll be in a great position to find a niche that works for you. Your offerings should be priced thoughtfully, so be sure to choose a premium price that feels right for you. Most people are afraid to charge customers high prices. If you’re feeling adventurous, why not try setting some bold prices? Don’t just go with the flow and play it safe with low prices like most people do. Most businesses just follow the market price, see what their competitors are selling for, and then set their prices slightly lower to be competitive. But the reality is that most of those competitors are also struggling financially. So if you follow their lead, you might find yourself struggling too.
Hormozi used to sell his program for a pretty high price, and even his father wondered if it was legal. He was amazed by the willingness of people to pay such high prices. But Hormozi explained that those who bought his program could earn more income than what the system provided. It wasn’t until then that his father truly grasped why people were so eager to purchase Hormozi’s programs, even at a higher cost. If the value you provide is far greater than the price you ask, people will perceive it as a good deal. People will buy if they think they’re getting more than what they’re paying for. Your task is to help your customers see the value in what you’re offering and get the best price for it. The best way to do this is by increasing its value.
Hey, just wanted to let you know that I really appreciate your current prices, and I’m sure you’ll want to keep them where they are. For example, you could help a business and generate an additional $3 million in revenue, and then ask for a payment of $500,000. That might make you look a bit cheap. When you set high prices, your clients take you more seriously. They’re so committed and enthusiastic, and the results show it. They feel like they’ve put their heart and soul into the game, and it shows. You also get a larger margin. This means you can hire the best team, improve your product or service quality, and grow your business without putting your mental well-being at risk. Plus, clients who pay more are usually easier to work with, understand the value, are less demanding, and rarely pretend.
I know low prices can be tempting, but they can also be dangerous. You might be attracting the wrong clients, your margins might be a bit thin, you might get tired easily, and in the end, you might become mediocre. I understand that your finances might be a bit tight right now, but that doesn’t mean you can’t provide maximum value. High prices can be a sign that something is important. It’s interesting how we often see something as more valuable just because it costs more. Have you ever heard about that wine experiment? The same wine is given an expensive label, and people say it tastes better. But it’s the same drink. The thing is, people are totally willing to spend more on something if they truly believe in its value. When you’re feeling confident, people are more likely to pay a high price for your work. Hormozi is so confident in his program system that he’s willing to sell it at a premium price. He has proven it himself in the field. And from there, his confidence has spread to potential clients.
Calculation of Value
Have you ever thought about how some people can sell their products for really high prices and still sell like hotcakes? You’ve lowered your prices, offered discounts, and even added bonuses, but it seems like only a few people are taking advantage of it. Well, I’m happy to tell you that the answer lies in what’s called the Value Equation, or the formula for calculating value. Hormozi has always said that your goal as a business owner isn’t to be cheap or fair. Instead, you just have to find a way to sell as expensively as possible while people are still willing to buy. I’m talking about prices that are so high they make you say, “Wow, that’s really expensive!” but people still manage to make the payment. I know you’re going to do an amazing job, but I just wanted to let you know that to achieve that, you need to understand how to make people feel that what you’re selling is worth it—that it’s equal to, or even more than, the money they’re paying.
Let me give you a simple analogy. Large companies in the world, such as internet providers, pharmaceutical companies, and social media platforms, sell products that are very cheap to produce. But they can charge you thousands of dollars each month. Why? Because they understand how to increase perceived value. So, how do you make your product or service appear extremely valuable? This is where the value equation comes into play. The core of the value equation is that value equals the desired outcome multiplied by the perceived likelihood of achieving it, divided by the time delay multiplied by the effort and sacrifice required.
There are four factors that influence how valuable your product or service is in the eyes of potential buyers, and we’re here to help you understand them.
First, the dream outcome. We all dream of achieving these things: being slim, wealthy, with a partner, looking cool, and being respected. All you have to do is show them how your product or service can help them achieve their dreams. You’re not making their dreams come true, but you’re showing them how to reach their goals.
Second, perceive likelihood of achievement. This is how confident they are that if they buy from you, they will actually get the results. If they are very confident, they will be willing to pay more. Like plastic surgery, a doctor who has treated thousands of patients can charge more than a doctor who is just starting out.
Third, there’s the issue of time delay. We totally get it; everyone wants quick results. When you’re working on a new product or service, it’s important to focus on achieving small wins as quickly as you can. Take a diet program, for example. It might take six months to reach your ideal result, but you’ll be so happy when you see those first 1-2 kilograms go away in just a week! That will make them more enthusiastic and confident in the process.
Fourth, effort and sacrifice. I understand how complicated, painful, or costly it can be to achieve the desired result. It takes a lot of time and energy. The easier and lighter it is, the more valuable it is. People just want things to be simple, you know? That’s why simple services like Uber, Grab, Gojek, Shopee, eBay, and Amazon can become so huge. They make your life so much easier! The great thing about this formula is that the smaller the bottom part—time delay and effort—and the larger the top part—dream flat likelihood—the higher the value of your product or service. Even if you can make people feel like there’s no delay and no effort required, the value of your product or service becomes infinite—so valuable!
It’s a silly example, but I think it’s cool. Picture this: you decide to try a weight loss product, and just as you click “buy,”—ta-da!—your stomach becomes a six-pack! Isn’t that wild? That’s like god-level in terms of value, isn’t it? But what’s important to remember is that it’s all about perception, not reality. You can absolutely deliver great results, but if people don’t feel it’s easy, fast, and certain to work, the value might be a bit low. You can do this by using copywriting, testimonials, guarantees, and user experiences to clearly communicate this value. Isn’t it funny how sometimes the best solution isn’t the logical one? It’s the psychological one. For example, at the London Underground stations, they didn’t make the trains faster; they installed helpful maps showing when the trains would arrive. The result? People felt more satisfied because they felt like they were waiting less.
It’s just like when you’re in an elevator, except in this case it’s a car. Instead of making the elevator faster, why not install a large mirror so people can look at themselves and forget about the time? We all know that the key to success in sales is not just a good product or service, right? It’s all about inspiring people to believe in their dreams and helping them see the possibilities. It’s fast and easy, so you don’t have to worry about a thing. If you can do that, you can charge whatever price you want and people will still buy it.
Thinking Methods To Create Value
Let’s start with how we think. You know, it’s funny how we’ve all been taught to look for one right answer to one question. This is what we call convergent thinking. It’s like math problems. The variables are clear, the conditions are fixed, and all you have to do is calculate. In the real world, especially when building a business, you’re paid to think in new ways. That means that one problem can have multiple solutions! And, you know, these solutions can differ in how well they might fit your needs. In fact, there might be one solution that’s the most correct because it’s the best value for someone else.
Let’s try to train our divergent thinking. Just picture this: there’s a brick. For a few seconds, try to think of as many uses as possible for a brick. Done? It’s not just for building, right? But think of all the ways you can use it. For example, it can be a doorstop, a decorative plant pot, or a weight for fitness equipment. Once you start thinking outside the box, you’ll be amazed at the possibilities. I’m so glad you’re finding value in a simple object! If you can think outside the box, I’d love to make a grand slam offer. It’s an offer that makes people feel silly for turning it down.
The Grand Slam Offers: Problems And Solutions.
The first step is to think about what the prospective buyer’s biggest dream is. For example, when selling fitness, Hormozi initially sold memberships for just $10 a month. But, sadly, it didn’t sell. Why? People just aren’t interested in memberships these days. They’re ready to lose weight and feel great. So he thoughtfully adjusted his offer to 20 kilograms in 6 weeks. Hey, here’s a friendly suggestion: when you’re selling vacations, try focusing on the vacation itself rather than just the plane tickets.
The second step is to jot down all the possible challenges that might get in the way of achieving your dreams. Go ahead, dig deep. For instance, someone might want to eat healthily, but they might be unsure about what to buy. Maybe it’s expensive, it takes time, it doesn’t taste good, their kids don’t like it, or it’s inconvenient when traveling, and so on. And then, there are the challenges of cooking the meals. The same goes for exercise and other activities. Try to see things from their perspective, not yours. And don’t you worry, because all of these issues are related to the four main factors in the value assessment. Is it worth it? Do you think it’s possible? Is it complicated? How long will it take to see results? Once you’ve done that, we’ll move on to the third step.
The third step is all about finding solutions to the problems we’ve identified. You’re so good at turning problems into solutions for your products or services. For instance, it can be challenging and expensive to find healthy food options. You can turn this into a product or service that makes shopping for healthy food easier and even cheaper than regular shopping. I totally get it—sometimes it’s hard to stay fit while on the go. That’s where your product or service comes in! It’s like a little workout buddy that lets you exercise without needing any equipment, even when you’re away from home. Keep going with this process until you’ve taken care of everything. And don’t be shy about pointing out problems. The more problems you can solve, the more valuable you’ll be. And we all know that sometimes, even a small problem that you can’t solve can make someone decide not to make a purchase. All of these solutions are like the building blocks for creating an offer that’s simply too good to resist.
Grand Slam Offers: Trim & Stack
Once you’ve figured out your client’s big dream, taken note of their problems, and found some awesome solutions to those problems, it’s time to start thinking about how to present those solutions to them. This part is quite challenging, but I’m here to support you every step of the way. This will help you figure out if your offer is so amazing that people will think, “Wow, I only have to pay this much to get all of this?” At this stage, it’s important to tap into your creativity. I know you’ll think of every possible approach. Even those that seem unreasonable. For example, if you notice that folks are having a hard time buying healthy food, you could offer to do their grocery shopping or go shopping with them. Or, if you’re someone who likes to plan, why not try making a weekly shopping list? The key is to brainstorm all your ideas first.
Once you’ve generated all the ideas you can think of, it’s time to filter them. Now, we’re moving into the trim and stack phase. Take a look at all the solutions you wrote down earlier. Now, think about which ones have high costs but low value. If you find any, feel free to discard them. If you find some that are cheap but also low-value, it’s okay to discard those too. I totally get it—you want to keep the ones with high value but low cost. These are the gems—solution that are inherently high-value, even if they come with high costs, but are still manageable or can be sold at a premium. The key here is to focus on what’s realistic for you, without feeling overwhelmed by too many advanced options. For example, if you want to help a client lose weight, you could move in with them, cook meals for them every day, accompany them to workouts, and so on.
But you also think about how you can deliver the same results without all the hassle. Have you ever thought about creating a video guide, a shopping list template, or maybe even an automated system that provides meal suggestions based on their data? Once the initial work is done, you can use the results over and over again. The secret is all in finding that sweet spot where something is a breeze to sell and a breeze to do. At the beginning, it’s totally okay to go above and beyond what was promised. This will make your clients happy and keep your business running smoothly. But don’t worry! Over time, you just need to find a way to keep delivering amazing results while making the system more efficient. You can achieve this through automated systems or by creating advanced yet scalable tools.
After you’ve done that, you just need to collect the best items and put them into a package that will make people think, “Wow, how can this be so cheap?” That’s what we like to call a grand slam offer! I know you’re going to love this offer; it’s absolutely irresistible!