10x Prices on Same Service Using Value Equation [Vid4] | Summary and Q&A

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May 19, 2021
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Alex Hormozi
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10x Prices on Same Service Using Value Equation [Vid4]

TL;DR

Learn how to increase the value of your offer by understanding the perception of value in your prospects' minds.

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Key Insights

  • šŸš€ The CEO of Acquisition.com is focused on helping three to ten million dollar businesses scale and exit, and he offers his valuable insights for free to provide more value to entrepreneurs.
  • šŸ’° The value equation is crucial for increasing conversion rates, and one of the main reasons an offer might not convert is because it is not valuable enough. Increasing value is key.
  • šŸ¤” Understanding the perception of value is important in the minds of potential customers. The value equation consists of four components: dream outcome, perceived likelihood, time delay, and effort and sacrifice.
  • šŸ’” The dream outcome must be meaningful to the prospects, and it doesn't have to be a completely unique solution. Being better at solving a core problem can make a product or service more valuable.
  • šŸŒŸ Perceived likelihood of achieving the desired outcome influences the perceived value. Building a track record of success increases trust and decreases risk, making the offering more valuable. ā³ Time delay is a component of value. Decreasing the time it takes to achieve the desired outcome or providing milestones along the way can increase the perceived value of the product or service.
  • šŸ’Ŗ Effort and sacrifice required to achieve the result are factors that can decrease value. Minimizing inconvenience and making the process seamless and convenient increases the perceived value.
  • šŸŽÆ The ultimate goal is to get the bottom side of the value equation to zero by relentlessly focusing on reducing time delay and effort and sacrifice while increasing the desire and perceived likelihood of achievement. Note: Please make sure to proofread and edit the provided content, as there are run-on sentences and incomplete thoughts that may affect the clarity of the points.

Transcript

welcome my name's alex mosey i'm the ceo of acquisition.com if you're new to the channel we help three to ten million dollar businesses scale and exit so they only have to get rich once if you're below three million dollars a year in revenue then everything i have here is to get you to hopefully get to three million dollars a year and i do it absol... Read More

Questions & Answers

Q: How can entrepreneurs increase the perceived likelihood of achievement for their products or services?

Entrepreneurs can increase the perceived likelihood of achievement by providing testimonials, case studies, and evidence of past success. This helps prospects believe that they can achieve the desired outcome by using the product or service.

Q: How can time delay be used as a component of value?

Time delay can be used as a component of value by offering faster results. By reducing the time it takes for customers to achieve the desired outcome, the perceived value of the product or service increases. This can be done by streamlining processes, improving efficiency, or offering immediate results.

Q: Why is decreasing effort and sacrifice important in creating value?

Decreasing effort and sacrifice is important in creating value because customers value their time and convenience. By making the process easier, more convenient, and requiring less sacrifice, entrepreneurs can increase the perceived value of their offerings. This can be achieved through automation, simplification, and reducing customer effort.

Q: How can understanding the dream outcome of prospects contribute to increasing value?

Understanding the dream outcome of prospects allows entrepreneurs to align their offerings with what customers truly desire. By solving meaningful problems or helping customers achieve significant goals, entrepreneurs can increase the perceived value of their products or services. This can involve identifying and addressing specific pain points or desires through market research and customer feedback.

Summary & Key Takeaways

  • The video discusses the concept of creating value out of thin air and understanding the perception of value in prospects' minds.

  • The value equation is explained, which consists of four components: dream outcome, perceived likelihood of achievement, time delay, and effort and sacrifice.

  • The goal is to increase the top side of the equation (value-increasing factors) and decrease the bottom side (value-decreasing factors) to create ultimate value for prospects.

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