#077 – Pricing & Traits

Quote, Podcast, Interesting Phenomenon, Hack, Tweet.

Author

Dimitri Gremos
November 13, 2024

Good morning everyone,

Hope you’re having a great week!

Let’s jump in.

read online on my website 

read time 3 minutes 

#077 at a Glance:

  • Quote: Walking with God.

  • Podcast: How to make more profit than 99% of businesses.

  • Interesting Phenomenon: The 5 common traits of Steven Bartlett’s best-performing podcast guests.

  • Hack: How to stay calm.

  • Tweet: The 80/20 Rule for Founders.

Quote I’ve been thinking about:

“Imagine that as your courage grows so that you can confront more and more of the horror of life, that a spirit begins to develop within you that gives you a strength that is commensurate with your daring. That’s walking with God.”

Jordan B. Peterson

Podcast I listened to:

The Game w/ Alex Hormozi – How To Make More Profit Than 99% Of Businesses

Alex Hormozi breaks down the one thing that 99% of businesses fail to optimise: pricing.

Highly recommend this one if you either run your own business or are thinking of starting one.

Absolute game changer.

My favourite insights:

  • Optimising pricing has a 6x stronger impact on profitability compared to customer acquisition.

  • Research into subscription models found the following churn rates (number of paying members lost each payment cycle/period) on average across various industries:

    • Monthly: 10.7%

    • Quarterly: 5%

    • Annually: 2%

  • Extending the ‘lookback window’ in a subscription-based business is incredibly lucrative.

  • When deciding on annual pricing, bill customers based on what you think someone is going to continue to pay for versus the highest amount you think someone will say ‘yes’ to today.

  • Always include a CPI clause for continuity contracts.

  • It’s easier to raise your prices than to lower them; start low and slowly increase.

  • Add a few key benefits to your annual subscription offer (in addition to a price discount) that will incentivise people to go from being on a monthly subscription to an annual subscription. E.g. for a gym, don’t call it an annual subscription, call it ‘VIP’ and they also get access to VIP-only sessions, towel service, etc, along with the status that comes with being a ‘VIP’. It’s a VIP membership. They just happen to pay annually, whereas ‘regular members’ pay monthly. Clever, right?

  • Another massive benefit of focusing on annual subscriptions is that you are essentially front-loading a year of revenue.

  • If you’re dealing with enterprise customers, contracts are very important. If you’re dealing with everyday consumers, contracts don’t matter. All they will do is decrease conversions. Everyday consumers factor the existence of a contract into their purchase but seldom factor it into their cancellation.

Listen on Spotify or YouTube.

[Podcast Length: 18 minutes]

Interesting Phenomenon I came across:

The 5 common traits shared by Steven Bartlett’s best-performing podcast guests 

Host of The Diary Of A CEO podcast, Steven Bartlett, was recently asked in an interview whether, out of the 400 or so guests that he’s had on his show, there were any common traits or characteristics that he noticed amongst the best-performing guests.

He said that, without fail, the guests featured on the highest ranking episodes each shared 5 key traits which essentially ‘won’ over the audience in each instance:

  1. Value. They were able to provide genuine value and insights that would materially impact the listener’s life in some way, shape, or form.

  2. Engaging. They each had charisma, total mastery over their emotions, vocal intonations, and vernacular. They knew how to hook people in.

  3. Story-telling. Each guest could not only engage the audience by the way they present themselves, but they also knew how to tell a bloody good story.

  4. Warm. They had an ability to be liked by their audience through humility and authenticity. They made the audience want to like them.

  5. Authority. The guest knew what they were talking about and had the credibility to back it up.

Seems like a pretty solid blueprint for how each and every one of us should operate in the course of our own lives…

Hack we should be using:

How To Stay Calm by Greg Isenberg

So simple and yet so effective.

Tweet I liked:

The 80/20 Rule for Founders

Thanks for reading! Grateful for your support.

Stay hungry, stay humble, stay curious. ⚡

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