Say THIS When Your Competition is CHEAPER

Summary

• If we're considering two deals and one is significantly cheaper, like $200 a month, we should examine the value, not just the price.
• It's important to communicate that lower prices often correlate with lower quality, just like a personal trainer charging less may not provide the same level of service.
• We need to challenge potential clients by asking if saving on cost is really saving if they end up with no results.
• Value should be the focus of the conversation, where we compare what you actually get for the price you pay.
• Clients often return to us after opting for a cheaper service because they didn't get the results they were hoping for.
• A useful sales technique is the comparison close, asking the client to envision both options at the same price and decide based on value, not cost.
• The ultimate argument comes down to achieving goals and not wasting time with ineffective solutions.
• The principle is that quality comes at a price, and if someone charges too little, they probably can't deliver top-tier results.

Video

How To Take Action

I would suggest looking at what you’re getting for your money first. Just like picking a gym, if someone is giving you a super cheap price, ask "why so cheap?" If it feels too good to be true, it probably is. It's like buying cheap sneakers and having to get new ones in a month. You want sneakers that last, right?

Here's a way to think about it. Pretend both options cost the same – which one would you pick then? You'd probably go for the one with better trainers, equipment, and results. So, remember, picking the one that gives you more for what you spend is smart.

When you talk to customers, ask them, "If you don't get results, did you really save money?" Remind them that sometimes, when we try to save dollars, we end up wasting time. It's not just about cheap; it’s about hitting your goals.

Now, try using comparison in talks with clients. For example, if you were going to invest in a stock, you wouldn’t just buy the cheapest one. You’d want the one that gives you more for your money, right? So with your service, make them see it's the same thing.

Finally, if someone offers services at a super low cost, they might not be doing the best job. You don't want to do a bad job for your customers. Always aim to be the best choice, not just the cheapest. And when you're explaining this, use real examples – like how investing more money in something that works is better than losing money when it doesn't work at all.

Remember, you don't want to be the kid training people for ten bucks unless that's the kind of quality you want to be known for. Aim higher and make sure people know why it's worth it.

Quotes by Alex Hormozi

"Get what you pay for"

– Alex Hormozi

"Price is what you pay, value is what you get"

– Alex Hormozi

"If you spend 200 to get nothing, is that a better investment than spending a thousand in getting 10x on it"

– Alex Hormozi

"The price of the stock is irrelevant, it's what you get for what you pay"

– Alex Hormozi

"You can buy nice or buy twice"

– Alex Hormozi

Full Transcript

yeah so we lost like we lost like a couple deals the past couple weeks to companies that are charging like 200 a month you know retainer and we're like we're better than these we're so much better than these companies we give more we're like we coach better oh everybody can make them more money and they're like go with this company or because they're 200 a month so i would so so tj so if you were if you were on the phone and you're like hey alex there's this guy down the street for two hundred dollars a month i'd be like hey man i was like what do you sell personal training for 200 a month right training for right i mean you would the guy would tell him he'd be like i don't know 80 bucks an hour like cool i got a kid down the street he'll do it for 10 bucks whose training do you think is better why do you think he's got to charge 10 right get what you pay for and so that being said if you want to go there the thing is is if you spend 200 to get nothing is that a better investment than spending a thousand in getting 10x on it so is it really a cost if we're looking at how much money we're going to make when you invest in a stock are you like well amazon's more expensive than than bank of america it's price to value it's like price is what you pay value is what you get right if you're getting for 200 it's still a bad investment that's how you break right well pricing comparison yeah one of my favorites is like well man why didn't you go with them yeah like they're only like man but like yeah the one case scenario is like we did the call with the guy first and then the next day he's like i got another company i'm talking with blah blah blah he's not with them we followed up with him he's like yeah i went with them because they were like two dollars a month we were like that's fine and it happens the thing is is he'll be back right yeah but the other side of it is uh because here's candidly they have no way to acquire customers you know they're ltv dude if he keeps him for a year it's 2400 right he's not competition that's kind of my point here but yeah even if it were and this did come up right one of my favorite clothes is called the comparison close all right which i say all right let's pretend price isn't an option all right let's say we're both priced at the exact same amount which one would you rather do they're gonna say you right i'd be like why and then they're gonna be like well you know i like the fact that you guys got the coaching thing uh i mean i like selling higher ticket that's that kind of makes more sense to me they'll start telling you why and you're like right you like anything else you keep going anything else any other reasons anything else like about roi what about risk what about like track record any of those things matter well yeah i guess that too like right and for that reason you can understand why we're not 200 as you let them sell you on the reason of why they would rather do you they spend three minutes telling you about why you're better you're like right you can understand why we're not 200 yeah but i like the stock example because it's listen it's like the price of the stock is irrelevant it's what you get for what you pay if you pay 200 you flush it down the toilet is that a good deal of course not if you pay a thousand dollars and you get 10 back is that a good deal of course so the price has nothing to do with our discussion but everything to do with how likely you are to hit your goal that's good how likely do you think you are to hit your goal and how important is your time do you want to waste three more months not hitting your goal trying another mickey mouse thing do you think if he was really the best in the industry like let's be real for a second do you think if he was the best in the industry the most likely to help you hit your goal he would charge you the same amount as a boot camp client yes or no hell no of course not so then why do you think it would be reasonable that he'd be better of course he's not so the question is are you being cheap are you gonna get burned twice today right or do you want to buy nice you can buy nice or buy twice right it's up to you