My First Job Taught Me This…

Summary

• Recognize seasonal business challenges and innovate to create year-round value. Just like the fur coat business found a way to cater to customers in the off-season by offering storage and conditioning, you should think about what additional services you can provide when your primary product isn't in demand.
• Offer maintenance services that extend the life and value of your product. If you sell something that lasts a long time, like a fur coat, give customers an option to maintain it so it lasts even longer.
• Think of your service as an insurance product, increasing its perceived value. Compare it to paying for car insurance to protect the investment; it makes it easier for customers to understand the benefit.
• Charge for the peace of mind that your product or service will last and continue to provide value. Just as customers were willing to pay for the coat maintenance, your customers will likely pay for guarantees or additional protection on their purchases.

Video

How To Take Action

I would suggest looking at your business like the fur coat store. When it's not your busy season, think about what other services or products you can offer. Like storing and fixing up coats, find a way to help your customers when they don't need your main thing.

You should also provide care for what you sell. If you sell something that can last a long time, make sure your customers can get it fixed or maintained by you. This will make your product even more valuable because it will last longer.

Now, talk to your customers about your service like it's insurance. Say it's like paying a little to keep their items safe and working well, like car insurance. It helps them see why it's smart to pay for this extra service.

Charge for making sure your product keeps its value over time. People will pay for knowing their purchase is protected and that they won't have to worry about it. It's like when the fur coat place charged for taking care of the coats, you can do the same. Offer guarantees or add safety for what you sell. This will make your customers happy to pay a little more because they trust in what they're buying from you.

Quotes by Alex Hormozi

"Overnight he created what I would consider an insurance product"

– Alex Hormozi

"If you do anything guaranteeing your work either through Labor or just decreasing the risk that it happens"

– Alex Hormozi

"You can charge people for the safety that whatever they just bought will continue to provide value for a longer period of time"

– Alex Hormozi

"What can we sell to people that's still on brand for fur coats during the summer?"

– Alex Hormozi

"We can repair any damages, we can sew things up, we can condition the fur"

– Alex Hormozi

Full Transcript

one of the things that had happened in the five generations of fur coat fathers passing on to fur coat Sons they realized that in the summer they never had any demand cuz people aren't trying to buy fur coats in the summer and they're like huh what can we sell to people that's still on brand for fur coats during the summer and so they came up with a genius idea we'll store and condition the coats for them as they sold every single customer a coat they said hey every year make sure during the summer when you're not using the coat you bring it back here we can repair any damages we can sew things up we can condition the fur and we can make it last two three five times long and then he would give this a little analogy he's like right if you're going to buy a $50,000 car you'd pay 100 bucks a month for insurance to insure the car of course right it's the same thing here overnight he created what I would consider an insurance product if you do anything guaranteeing your work either through Labor or just decreasing the risk that it happens you can charge people for the safety that whatever they just bought will continue to provide value for a longer period of time