The Game with Alex Hormozi - How To Close Sales By Them Saying NO | Ep 222

Episode Date: July 24, 2020

No means… Yes? Wait, what? Today, Alex (@AlexHormozi) talks about an interesting way to get clients to say yes to your sale, and why this tactic is not only foolproof but also very beneficial to your skill in sales.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(1:20) - Upsells drive profit by getting clients to say yes.(2:07) - Example of sales trick with earmuffs and coats.(5:09) - Close sales by directly asking clients what they want.(7:58) - Utilize upsells in business for additional revenue.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

The point is that they would get people to just agree that they don't want anything else. Welcome to the Jim Secrets podcast where you talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe. What's going on everyone? Happy Saturday. I want to give you a quick and tactical training. This is one of my favorite stories of all time from selling stuff. And this comes from the Voltz.

of Richard Swartz and Mano Swartz furriers. They're a fourth generation furrier in Baltimore, and they took over the entire market, really the larger like Maryland, Pennsylvania market, just simply doing the boring work and being better at the everyday things. And so Richard Schwartz, unknowing, unbeknownst to him, was a mentor of mine in terms of, I just observed a lot of the things that he did in his business.

And I started doing back of napkin math when I was 17 or 18, and I was like, dude, this guy kills it. and he was and I probably still is and there was one is I learned so many things from him but one of them was getting people to say no to say yes all right and so this is a very very real-world tactical tidbit that you can use to close sales now there's a specific type of sale that this really applies to which is a lot of times bolton or upsells right and these upsells can be incredibly important to the business in terms of driving bottom line profit, liquidating acquisition costs.

And so usually these are sales that are not complex sales. These are not necessarily core offer sales. These are sales within the Finnish world that might be attributed to supplement sales or meal sales. Or if you were in retail, it would be like getting someone to buy a scarf with the outfit or just anything along those lines, getting someone to buy orthotics if you're in the physical therapy space or if you're in the dental space, getting them to buy a space. kind of extra brace or special toothpaste or whatever or if you're in the beauty space, you know, night serums that go with your service package, whatever it is, right?

The point is that usually there's going to be, you know, one or multiple things you're going to want to go with your core offer, all right? The reason that this little trick I learned from him is so powerful is that it closes like crazy. All right? So if you're used to having like 20, 30% of people take up sales, that is a normal amount where people take up sales. And the reason he gets 90% plus.

to take his upsells because they don't know they're being sold. So here's the trick and here's how it works. And I mean, you can take this to the bank. Like, it works. Okay? And I'll give you the example that they used at Manor. And so somebody would come in and so every year if you bought a fur coat, you would have to store it, right?

And they made, they killed it on storage. But anyways, so people would come in. So basically they'd sell someone a car essentially because that's how much a fur coat is. They sell someone a car. And then every year they would maintain that customer. relationship by getting them to come back in and store their coat during the summer because it's not good to keep a really expensive fur in the heat or whatever, right? That's at least part of the pitch. And so everybody brings their fur in to get stored in condition. So they brush them,

you know, and I was one of the guys who was brushing them in the fricking warehouse and like spraying these things down. It was mine number work. But I got to learn a lot while I was there. And so, anyway, we brushed these coats. And so one of the, one of the things, one of the promotions you ran as an incentive was get a free pair of fur earmuffs when you store your coat for winter or store your coat for summer. Real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything. And so the only ask that I can ever have of you guys is that you help me spread the words

so we can out more entrepreneurs, make more money, feed their families, make better products and have better experiences for their employees and customers. And the only way we do that is if you can rate and review and share this podcast. So the single thing that I asked you do is you can just leave a review, but take you 10 seconds or one type of the thumb, it would mean the absolute world to me. And more importantly, it may change the world with someone else. And so tons of people would come in because they wanted these true real fur earmuffs by bringing it in. And so what ended up happening is David, his son, would the person would come in and they'd say, I want to, I want to do this. And can I get the fur fur fur earmuffs? And so he would show them the fur earmuffs and then say, well,

Well, you're like, what we're going to do is store and condition your coat. You don't want anything else, do you? And they would say, no, I don't want anything else. But the conditioning was an upset, right? And it's almost even the way I presented it to just now. It's like, well, you're going to store your condition your coat. But storing the code versus storing and doing the brush down and doing the shampooing of the coat is obviously an extra service.

But it immediately added a couple hundred bucks to every single coat. And they were doing thousands of coats, right? And so, anyhow, the point is, is that they would get people to just agree that they don't want anything else. Okay. So think about how you can use this strategy, right? There's many ways you can use it, but something else is the easiest that I can ever see, right? So let's say you say, hey, like, this is what you're going to, this is what you need to take for this weight loss program, right? These are the four supplements you need to take.

Now, you might have more supplements, right? And you're like, you don't want to buy anything else to you, right? And then they're going to automatically, a lot of times, like, you don't want to buy any more stuff to you. And then they're like, no, no, no, I don't want to get anything else. Right. And by doing that, you automatically close the sale that you just recommend it, right? And you can do the same thing in a different way, which would be like, hey, you don't want to pay full retail for that, right? And they're going to be like, no, no, no, I don't want to pay.

It's like, cool. So you want me to send it with this discount to the, you know, the address I have them file. And they'll be like, okay, yeah, yeah, let's do that. Right. And so by doing that, you're getting them to say yes by saying no. And the thing is, is people are so contrary and people always feel like they're being sold that you actually use that psychological. Like it's subconscious.

Like they can't even think, they're not even making the thought process. Like they're agreeing because they're so pre-programmed to try not to buy things that they end up buying things. And so you use that psychological bias to your advantage. It's one of the most powerful techniques I have ever seen in sales. most people get 20 to 30% uptake on their upsells if you use an assume close tactic like this you can literally see 90% plus take rates on this right and so as a to wrap up the story when they give them the earmuffs at the at the furrier they would they would they would they would say well now that you have those you're going to need to to store those and condition those as well

So that'll be, you know, an extra or whatever. And so what ended up happening is that people would get the free earmuffs, but you'd have to pay to get a stored of conditions which would cover the cost of the fur. So it was just kind of hilarious because what ended up happening is you'd give it to them. They'd have it in their hand. You'd be like, well, you still need to store it because you just bought your coat here and you're not going to keep these out. So to be congruent with the story of needing to store the coats, they had to wrap it right underneath the jacket, and they would take both of them in the back.

And so people would come in, they'd get the earmuffs, they'd hold on to. them and they put them right back on the coat and they say hey you don't want us to do anything else besides you know storing and conditioning do you and they're like no no no I don't want anything else like okay cool well let's we'll get that taken care of and then they'd expect the coat real fast but we're like I want us to see this little seam here and they're like yeah sure you want anything else do you right no no no and so every time each one of these things they just keep upselling but people are so subconsciously wired to try and say no to upsells that they would say yes by saying no and so you can try and utilize that in your business

I think it works very well with kind of like hand-to-hand small upsells. But a lot of these little small upsells can be massive profit drivers in the business. This is kind of like your fries and Coke situation that I'm talking about here. Like this is a lot like you don't make your money on the burger. You're making money on the fries and the Coke because there's the high profit margin things, even though it's not the core offer. And a lot of times there's huge pockets of profit that most, especially most small business owners and especially if you're running like a brick and water beat service business

that you're missing out on. So I highly recommend using that strategy. If you're like, oh, man, I wish I could use it in my business. You can just use your brain and be creative because winners always think, man, I wonder how I could use that in my business. And losers think that wouldn't work in my business. My business is different. So decide which one you are and then execute accordingly. Otherwise, lots of love.

Hope you guys have an amazing Saturday. I hope that there was a value for you. If it is, you know, drop or tag or like or do all the fun stuff. And I hope to see you all on the next podcast. All right. Get you soon. Bye.