Short excerpt from a YouTube conversation (Dennis H. Lewis + another speaker) endorsing Alex Hormozi’s idea that entrepreneurs should pursue high-ticket customers first. Key claims: making a high-ticket sale is not materially harder than a low-ticket sale; lowering price is a common but mistaken reflex; entrepreneurs should focus on where the next dollar comes from. Tone is conversational and advisory.
Chapters
We are strong believers in Alex Hormos idea of going for high ticket paying customers first.
First, definitely. Yeah. I mean, when you're putting every penny in the game out of your pocket, you need to think about where the next penny is coming from. And to be honest, making a sale is almost as difficult to make a $10,000 sale as it is to make a $10 sale. The mechanics of the process are very similar. Sure, maybe there's a slight impulse buy thing that can make a low ticket offer slightly easier to buy, but that isn't the, you can't rely on that. That's not going to, it's not going to get you out of the hole.
Why do we as entrepreneurs and to be honest, just as regular human beings, why are we prone to believing that hey, if I lower my prices I'm going to get more customers and this is a mistake that when we, we, you know, when we've launched, launched our own products, this is something that I always fall victim of. And I always, almost always tell you, aren't we, aren't we putting up our prices a little too high maybe? And you always keep telling me, no, we're not.
No. Well, first of all, let's think about it. The world is a big place.
Yeah, it's big.
I mean there's like what, 7 billion of us out there. Now if you go to China and you say I want to just market to the top 10% of Chinese people, man, they're probably all filthy rich because there's so many, okay? Because just by the numbers game. So there really isn't a reason why you can't just focus on the big ticket customers at the beginning. Then you can learn to scale and you can learn to adapt what you do really well for those big ticket customers to broaden your reach. But let's face it, most new businesses don't need, don't want, shouldn't try to get 10,000 customers. They're better off with 10 and doing a damn good job of satisfying them.
