buy some popcorn you can get all popcorn for three dollars for a large for seven
so we 22 we've all been wondering pump dollars
you're like a rhythm so if you chose all you're like most people we can't see
what will happen we offer the same -
they have no idea we're running in spirit nearly everyone
goes smoke dollars with a lot of money and seven ounce a little I wanna drive
now we're is we influence precision here's another decision for you you can
get too small for three dollars on median for 650 or you can get the bar
for some a rattle if you get your choice large before appealing we paid the same
change will be set back to do what happened you think more people will buy
a large popovers
large has become large so how to basically be live bands back then the
media did she spend fifty cents more how much more does she really spend but what
if she thinks she's spent irrational was that an Erastus you think she thinks
she's being irrational she thinks she just made the most rational decision in
the world but we can predict her being irrational and that's where that books
about there's so many different examples which I want you to read it here's the
thing raise your hand if you've gotten I need to think about it
raise your hand high there's no way none of you ever had a person say I need to
think about it okay come on sir okay there we go okay maybe I just didn't ask
question Pervez michael so we get that question a lot the reason most people
need to think about it is because your pricing makes sense now when I say your
pricing keep in mind having seen your pricing I'm assuming you're not using
the decoy effect because I have yet to me a small business that has done this
there's agent marketing people do it bigger businesses corporations do it
because they invest in education understand is this is not new this is
been around for years and decades people know about the decoy effect it's also
called something else a camera what it is but it's a phenomenon but if you
google the decoy effect it's a scimitar or whatever something
like that I got a really cool word for word too but your pricing makes too much
sense people need to think about it you need it to not make sense it needs to
make no sense that's that made no sense the popcorn
for 650 for medium right what would it make sense what would be a pricing for a
medium that makes sense five bucks people would think about it
and people would pick the three people would pick
people would pick the seven and people would pick things all over the board
the reason businesses don't do that is because they're afraid that if only one
looks appealing then everybody that would have bought this one or this one
won't buy now in reality that's not true they're still going to buy they're just
going to buy the one that you want them to buy and you have it's your job to
make that look appealing so I'm gonna show you how that works really quick
this is another study and I want you to pick the one that stands out to you the
most okay now I want you to be honest don't like beat the system okay which
one of you chose this person right here raise your hand high okay which one of
you chose that one which one of you is the most attractive I should say which
one do you find the most attractive that one raise your anti that one raise your
and I that one that one okay so in a study done with thousands of people I
think it was this has done many times different groups of people thousand
people men women children more than 80 percent choose this one because what
happens is they notice a similarity between these two and they don't know
what it is but naturally the brain starts identifying what it is but picks
now that the decisions come down to these two this one is the decoy now if I
had I say P choose between these two the results would be closer to 5050 so
here's an example of a typical pricing model that I see in Fitness now
everyone's pricing is different on literally just picking easy numbers
general numbers for you guys this is actually an example of a customer we've
tested this with $99 a month if you do one class a week
139 a month if you do two classes per week or 159 a month for unlimited visits
okay pretty common right you guys have probably seen pricing similar to this
and as you can see the pricing incrementally goes up matching the value
here's an example of it again in a different way contract stuff ninety-nine
a month for a 12-month contract 139 a month for a
a month contract or 159 a month if you just want to go month-to-month seems
appropriately priced right it makes sense
unfortunately it's costing business because it makes so much sense people
need to think about it am I going to work out this much am I going to commit
to it am I going to do once a week am I going to come twice a week am I
going to come three now they're like thinking about themselves and what
they're going to do they're going back into their past and chances are if
they're signing up for some new fitness thing their past is that I don't commit
to things so let's use the decoy effect let me show you how it's worked you guys
see what I'm doing here so raise your hand what stands out as kind of a
no-brainer five dollars much more than what it is
right why why would you ever pick two visits a week ever
not even close and what happens is you might pick between these two you think
as a business owner but it's a consumer you're just really deciding here now
your eyes are here this one is the unattractive version of this one so if
this is the one you want to sell you make that one beautiful and the other
ones exist for one purpose to make it look more beautiful that's it the only
reason they exist I have my packaging set up that way we signed up over 200
people only two people have bought the one I didn't want them to buy everyone
has we have a loud louder and louder I want to sell the loud
everyone's bought the loud except for two people and I was pissed and confused
was like they bought that one why whatever so make the one you want sell
so here's here it's in contracts you guys see it significant drop it's like
four or five months free now that doesn't mean you have to dramatically
drop this price but it can mean you dramatically increase this now another
thing you could do to make it even more appealing well just you know Leslie this
is also our VIP members so they hooked up pretty solid on top of the
great pricing they also get a free nutritional consult they get a grocery
list they get stretching guide they get a workout from hotel diet or when they
travel you can also use it at home they get an awesome t-shirt they get two free
passes for friends and they get VIP bottle service
not great goose every time you come and work out we give you a free what bottle
of water so you'll have to bring your own oh you can do whatever you want
right this is an example of how to make this look even more beautiful so we just
took that girl put earrings on her and lipstick and a bunch of cool things to
make it a no-brainer people don't need to think about a no-brainer you need to
think about something you need your brain forward right that make sense so
in order for something to make a lot of sense for the customer it has to make no
sense this doesn't make a lot of sense that
that one there makes no sense and that's why they'll choose it does that make
sense a lot of Sun just you know - you don't have to just do this with your
pricing for membership you do it everywhere so check out this bottle of
water there's a pretty cool bottle looking bottle of water right like how
much would you guys say the average person would think this bottle should
cost four dollars right let's say we let's say we're getting in reality you
can get this bottle wholesale for probably like less than a dollar or a
dollar okay so let's say you decide to sell it for 250 now by the way when you
sell your waters don't do what a lot of people do I don't know how you guys do
it but don't just keep it like in a cooler or in a designated area put those
babies and a nice tin cooler with ice and stack them right there in one or two
different places where everyone works out let the condensation drip down
serious guys sell the waters makes a big difference we just did a whole episode
on this okay sell freaking waters manages you can add 5k a profit just by
that don't believe you do the math you'll do it trust me trust me so you
put these in cool tips now what you do is if you just put this water for 250
and you put another drink with it let's say it's a sports drink whatever it is a
coconut thing or electrolyte whatever has
little flavor to it you're not going to sell as many you want to sell double or
triple that you know those stupid little worthless bottles of Arrowhead water you
don't know what came up with an idea to put them in a shot glass sized bottle of
water have you seen those things yes okay you throw those in there
250 250 225 I'm telling you people just buy big bottles of water all day long
now why why do they buy the big ones
it makes Bill Kim you will never sell these little things never you will
Bissel one-time purchase this is a puppy this is these are a Bazar one-time
purchase you're going to be to stock up on these okay so so definitely a sell
waters guys man there's so many ways to sell to people that already buying and
we did a whole episode of the GSD show in the last episode the most recent one
on how you can add more revenue without increasing membership and getting more
money per member I don't like times run guys about how
old I'm going to make it through marketing advertising and sales guys
what I want to let you guys know we talked about this earlier people spend
so much time on getting better at what they do in regards to the service and a
study was just done I just did a great interview with Jay Baer he's known as
the customer service sensei and he said that 80% of small businesses would
survey themselves as giving superior customer service and 8% of their
customers would agree every business thinks their baby is beautiful but in
reality what was great yesterday is mediocre today today people are giving
some pretty good services you're not just comparing yourselves to the guy
down the street you're comparing yourself to their experience at the
Hilton you're comparing students to their
experience at the Hyatt to their experience at a movie theater to the
experience at a car dealership people are starting to realize what customer
service really means to them so who cares if you're if the competitor sucks
you need to be better you need to learn from the best of the best of the best
Disney right Nordstrom what do they do the best CEOs raise your hands if you
are the CEO at your location the best CEOs study this stuff they're great at
it think about the best Henry Ford yes he knew his stuff within it but this guy
didn't even graduate high school and he had people wanting to work for him in an
age where education was very very important he knew how to market himself
and his business C jobs we all know he wasn't the brains in the circuit
breakers and all that stuff right he had the vision he knew how to market himself
he knew how to get on that stage he knew how to deliver a message and create a
story and get it out there in a way that's attractive Bill Gates said if I
have $2 left to my name if I lose it all and have $2 left I'm spending 1 on PR
Mark Zuckerberg if you watch his earlier interviews he was a wreck he just was
not articulate you look at him now and he's worked on his game he
understood how important it was as CEO as ahead of the face of the franchise
for him to really be articulate be able to tell a story and market Richard
Branson Virgin Airlines and Records and all the stuff that his guys all over the
place this guy what a great storyteller but he understands marketing you
understand sales every raise your hand if you watch at least one episode of
shark tank raise your hand high if you agree they all seem to have a good sense
on marketing and sales raise your hand if you would love to have any of them
heads your marketing team raise your hand if you would love to have any of
them sell people for you they're great at that they study it Marcus lemonis the
Prophet raised rain if you watch the profit of the partner that's one big
marketing sales pitch the entire time Saul he does he's amazing at it Elon
Musk you heard of Tesla you heard of Solar City this is the guy he knows you
listen when he speaks he's really good at it
speaking of Tesla does anybody know who this is it's Nikola Tesla this guy
invented 10 inventions that change the world you live in today
your world exists the way it does to you because of this guy in 10 different ways
by the way that's the articles where you can see those 10 inventions yet nobody
knows who he is and in fact he died broke he was always broke he wasn't a
good businessman man that he no inventions man did he know what he did
but he didn't understand marketing he didn't understand sales he didn't
understand business he wasn't like those other guys he never
invested in that part of his game and he was never successful because of it now
depending on how you determine success right but as far as having a life where
he can let go spend time with his family not have to look at the right side of
the menu all the time first you know what I mean by that that wasn't his life
understand how important it is to your business your employees your families to
really study and get great at this part of your game never again will you hit
that wall never again will I hit that wall if you guys get that down you guys
said it yourself earlier you would easily have any of those shark tank guys
manage your marketing team you would easily have any of those shark tank guys
manage your sales team so that means that business can be better if you get
better at business right because those guys everyone I showed you
doesn't own a business like you own correct none of those products guys
probably do what you do and know what you know on the fitness side and health
side correct but they know what business and marketing and sales and that's why
you would love to have them come in and transform your stuff for a month be them
be the transformation on that side sound good raise your hand if that makes sense
thank you very much I appreciate you guys listening hopefully you got value
out of today thank you