$100M Price Raise Playbook
The $100M Price Raise Playbook by Alex Hormozi is a concise, action‑oriented guide that teaches business owners how to increase prices strategically while retaining customers and boosting profitability. It begins with a compelling case study of a struggling gym owner, Trey, who tripled his rates, lost some members but dramatically improved cash flow. Hormozi then explains why raising prices is essential, contrasting a "vicious" low‑price cycle with a "virtuous" high‑price cycle that enhances perceived value, client investment, and business resources. He outlines core rules for price increases (no grandfathering, avoid lifetime deals, align price with value, raise annually, test on new customers, etc.) and provides a quantitative framework showing how price changes affect clicks, conversion rates, churn, LTV and total revenue. The core implementation tool is the RAISE letter framework (Remind, Address, Invest, Soften, Explain) with detailed script examples and a full template. Additional sections cover rollout tactics (testing, communication channels, handling objections), a step‑by‑step checklist, and a specialized gym‑specific letter. The playbook concludes with a call to action for readers to execute price raises immediately, emphasizing that disciplined, frequent price hikes are a primary lever for scaling businesses.
Topics
Why Raising Prices Is a Strategic Imperative
Explains the economic and psychological benefits of higher pricing, contrasting the vicious low‑price cycle with the virtuous high‑price cycle, and cites Warren Buffett and Dan Kennedy to reinforce the argument.
Core Rules for Successful Price Increases
A concise list of non‑negotiable principles (no grandfathering, avoid lifetime deals, align price with value, annual raises, test on new customers, meet with customers for >50% hikes, pair raises with launches, calculate acceptable churn loss).
Pricing Impact Analysis: Conversions, Churn, and LTV
Provides a data‑driven model showing how different price points affect click volume, conversion rate, churn, lifetime value and total revenue, with tables for $10, $20, and $100 scenarios.
The RAISE Letter Framework
Breaks down the five‑section price‑raise communication template (Remind, Address, Invest, Soften, Explain) with sample language, tone guidance, and a full reusable template.
Implementation Checklist & Rollout Tactics
Step‑by‑step actions for preparing, testing, segmenting customers, delivering the letter, handling objections, and post‑raise follow‑up, including a printable checklist.
Case Study: Trey’s Gym Price Tripling
Narrative of a gym owner who raised prices threefold, the challenges faced, the communication strategy used, and the resulting shift from a $2k loss to $4k profit per month.
Psychological Levers: Loyalty Rewards and PS Statements
Details how softening the price increase with limited‑time discounts and personal PS notes mitigates churn and builds goodwill.