The Game with Alex Hormozi - The *GASP* & Teaching High Ticket Sales | Ep 147

Episode Date: September 4, 2019

"When you get someone to have shock, and then their pricing is massively stretched from when their expectation, all of a sudden you break into a new stratosphere of buying in retail." Today, Alex (@AlexHormozi) discusses the importance of selling higher ticket items and how to push the price barrier by giving the prospect a "gasp" moment. He also emphasizes the belief that the more someone pays, the more they pay attention, and how to embed this belief in the salespeople.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:(0:51) - Explain to salespeople: we know more than incoming staff.(2:38) - If no gasp at price, price not high enough.(5:21) - Get the gasp upfront to make everything else cheaper.(6:09) - People pay for attention; sell to goal, not specific program.(9:24) - Don't be afraid of no to big one.(11:00) - More invested, more successful outcomes.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Good morning, everyone, happy Sunday. I haven't talked about sales in a long time, and sales is probably one of my favorite topics, and it's one of the things that we're most known for, at least outside of this space. And so I feel like I might get back to my roots the next couple podcasts slash videos. And so I wanted to tell you a quick story about the GASP.

And so when you're training a new salesperson or even, you know, whenever your existing trainers to sell, one of the difficulties is selling higher ticket. And that's because people sell out of their own wallet. Meaning if they believe that something costs a lot of money to them, then they will be less likely to be able to sell it to someone else because they think I could never afford this. I would never pay for this. And therefore, this person will make that, you know, they won't buy.

There's a couple of issues with that. The first is that, and this is what you would have to explain to an incoming salesperson or a salesperson who is struggling is that we understand certain things that someone who's coming in does not. And so, for example, a mechanic might be like, gosh, I could never, like, I can't believe I'm going to sell this guy like a radiator and whatever and like an oil change when like, I like it takes two seconds to do. We have trench knowledge that other people don't know that comes naturally to us because we've been doing this for such a long time. And we and we underestimate how valuable the things that we understand are to people who do not know them.

Right. Like I am useless at virtually everything that has to do with like fixing things and and household chores and cars and like I'm useless at most of those things. And so if someone were to come and sell me on something like I have no idea. I just want them to take care of it. Right. And so if that person was like, you know what, you can probably take care of this and you can probably take care of that. They're downselling me on things that like I want. I'm like, no, like I don't want that and so often I see this in fitness sales as well with people who are inexperienced right and so I want to show you to tell you this one story I got from nick elliott who's a phenomenal salesperson he runs a 35 person sales for it lady boss and um phone sales just selling cold people who opted in

to two thousand dollar packages all right they didn't even opt in for a program they literally call them up and sell them like real sales okay and one of the one of the stories that he tells is about his time when he was that six-pack shortcuts and what they would tell new people coming in is that when you pitch the initial offer, the first thing that you were going to tell someone, right, that is your price anchor, right? You have to rip the band-aid off of how high this is going to go. They would tell their new prospects and their new recruits. If the person doesn't gasp on the phone at the price, you did not go high enough. I'll say it again. They would tell the new people coming in the door. When you pitch it, pitch the biggest package we have and go as hard

in as long as you can in terms of length and duration and paid and full, and you want that sticker to have a shock. You want the prospect on the other side of the phone to gasp, right? And they would tell them then. And so when people who were new came in, it removed the fear of the shock because they made the shock the objective. It was fucking brilliant. And so I am telling you, if you make that the objective, what happens is that you push the price barrier, right? When you get someone to have shock and then their pricing is massively stretched from their expectation, all of a sudden you break into a new stratosphere of buying. In retail, if you're going to go buy a suit, right, and I did this recently, actually not that recently,

two years ago, I went into a really high-end suit place, right? And I was like, I'm going to get a really sweet suit. Like, I've never had one. I really won't. And so I went there. And the first suit they had me try on looked great. And then I was like, well, how much is this thing? And they're like, the jacket is 12,000, right?

And so they started me there, right? And I was like, listen, Don, there's like no fucking suit in the world that is worth that to me. Like, I don't care. As long as it's tailored right, I'm good. Right. And so they then went to the next suit. They tried a couple, you know, I tried a couple other suits on it.

And they were like, this one, I think is going to be really great for you. So I tried on, and the whole suit was like three or four brand or something, like the whole thing, right? And at that point, I had been. price angered at 12 and I literally felt like it was a good deal walking out for like 3,800 bucks. I was like, great. And only after the experience, I was like, man, I was like, they rocked that. Like, they totally crushed me. And what happened is after I started there, that was the first purchase of the day. I had hired some like professional shopper, Russell told me to do it. And it was actually a pretty good idea. I ended up getting some clothing.

But anyways, from there we went to like, you know, some places in the mall and got like some shoes to match and all that kind of shit, right? But what happened is that after that first $12,000 price point, anchor, everything else felt like a rounding air. Really? Like everything else felt like nothing. And I think I spent total of like $10,000 in the day between Layla and I going to like some of the nicest shops and Hugo Boss and getting nice belts, all the sort of stuff, right? To like redo. But it was all because that initial barrier. was broken at the beginning of the day, right? And then everything else was nothing.

And so to the same degree in fitness, if you can make that big sale or at least get the gas, go for the gasp up front, then everything after that will seem significantly less expensive. And you'll be able to collect more money up front. You'll be able to get the person more invested. And you'll ultimately be able to close more people at a higher average price.

Hey, Mosin, quick break just to let you know that we've been starting to post on LinkedIn and want to connect with you. All right, so send me a connection request and note letting me know that you listen to the show and I will accept it. There's anyone you think that we should be connected with, tag them in one of my or layless posts and I will give you all the love in the world. All right. So, let's get back to the show. So the second piece to this is a belief that you have to embed inside of your salespeople or yourself that the more someone pays, the more they pay attention.

You may have heard me say this before, but it's super true. If someone pays $21 to do something, they don't give a shit, right? If someone pays $2,100 to do something, they will probably care a lot more. And so it is in our best interest and their best interest for us to sell them at the highest possible personal investment. Don't think about it as a price thing. Think how much can I get this person to invest in themselves? All right.

So I want you to take that as a pre-frame when you're talking to these people. When you walk in the door, you have to think, how can I get this person to invest the maximum amount of money in themselves? And when you think that way, you're thinking about it from the context of helping this person, right? You're not like, I need to close the sale because that never comes from the right angle. Your energy will be off. Your tonality will be off. And what happens is when you get into an obstacle overcome situation, you will start talking in a combative tone.

How could you know? What do you have to think about? Like you start getting into that and you never win there. If you're always selling from your back foot with the intention of helping the person make the investment in themselves and overcome the fears of making the decision that most people have, then you will be able to win, right? And you ultimately be able to help that person. And so that's the angle that you have to come at when you're making these sales.

That being said, when someone walks in your door, whether it's for a 21-day promotion, a six-week challenge, a 12-week train, it doesn't matter what they walk in the door for, you can sell them to their goal. You do not need to sell these specific program that they came in for. that program may not be the solution to their problem. In all likelihood, it isn't the solution to their problem because it's a short duration thing when in fact they probably want a bigger solution.

So if you identify when someone walks in the door what their goal is over the long term, you can sell to that goal, rapid guarantee around it, make an irresistible offer, give them a same-day discount for making or paying full for that duration of time in the beginning, and you may be able to get one, two out of five to take their thing that they came in for, which was maybe a $600 front-end program and actually upsell them to a $2,000, $3,000 ticket. All right? And if you come at it from that angle and you treat everyone the same when they walk in the door and you're an equal opportunity salesperson, you will also sell more people because when you actually

sell them at the price point, which just by the way, in general, a $600 price point for Impulse Buy is typically the one that you can get everyone on. But you're underselling 20% of people who are saying yes, 20 to 30% could go two to three times that price. And so if you want to maximally extract the value from the people who are walking in the door, you need to match goal to the promotion, to the prospect and the price that that person can afford, right, and the ultimate investment that they're going to make. I can tell you that a very rich person won't care about $600, right? And so if you were trying to best serve them, then you need to make the investment at an

investment that is significant enough that they will care about the investment so that they will invest in themselves. And when you're going through the sales process, you're seeing where that point is for that person so that you can find the maximum investment point. Don't be afraid of having the person say no to the big one. That's okay. You ripped off the band-aid. You priced positioned well. And then you can downsell to what their largest investment is that they're able to do for themselves. And when you do it this way, you can two or three-x the average front end ticket that you can have. And so when you're teaching your salespeople, The two beliefs that you need to convince them of is one that when they present the price, they should go for the gasp. And if they didn't get the gasp, then they didn't go high enough, all right? Which means that if you're saying, I'm selling you at $99 a week for 33 weeks because that's how long it's going to take us to get there, then you're saying $3,300 up front is what you were going for. If they do not gasp, you should have gone higher. Does that make sense?

After that, you have the, you have to give them the conviction that this is helping this person, invest more in themselves, which will ultimately yield the best result for them in the long term, right? We can all agree, and this is part of that sale, that the reason they came in, if they're trying to lose 50 pounds, it's not going to happen in six weeks unless we start lopping off body parts, right? It's not going to happen. They know it. You know it. So just solve their problem. If someone then is like, I really can't afford it, blah, blah, blah, blah, then sure, shorten the duration of time to the coming in for. And then you can ultimately downsell the thing that they walked in the door for, but with the understanding that you're still going to

have the intention of solving the initial problem when they walk in. And so I'm going to talk more about sales because I love sales, but I haven't made one in a while. If you like this, comment and like it so that I know and I'll make more stuff like this. But teaching the gasp and transferring the conviction that the more, the higher the investment the individual makes in money, the more invested they will be and ultimately the more successful they will likely have in terms of outcomes. And if you can extend it over a period of time, you know, and I know that in 33 weeks, in 36 weeks, we can genuinely change someone's life. In six weeks, in eight weeks, really fucking hard, right?

It's really hard to change someone's life in that period of time. But if you can get the commitment, then you can massively impact this person. And so that should be your belief going into it. And that should be the belief that you convict your salespeople with so that they don't sell from their own wallet. And they sell out of the wallet of the individual so that they can get the investment that is meaningful for that person and they don't let their own experience or their own knowledge devalue what you were providing the person who's walking in the door.

So I hope that makes sense. I hope that I was valid for you in terms of breaking some beliefs for your salespeople. Go for the gas, turn into the conviction, and then don't let themselves from their own wallet. You also be able to help more people and make way more money on the front end. All right. Have an amazing day, guys. Happy Sunday. I'm going to be digging super deep into our sales scripts and process.

I'm remaking our whole sales training and making really. really short and then deleting everything else into one central sale. So I'm pretty pumped in going through all my lifetime notes, which is great. So have an amazing day and love, drop a like and tag. All right, back.