4 Ways To Get Ahead of 99% of People

Summary

In today's competitive landscape, excelling in one of four key areas can set you leagues ahead of the competition. Alex Hormozi emphasizes the importance of choosing one vector—speed, risk, price, or ease—to focus on and dominate. By delivering faster, more reliably, cheaper, or more conveniently than others, businesses can carve out a unique position in the market. However, the true magic happens when a business can combine multiple strengths. Hormozi also underscores the importance of understanding customer needs and aligning your competitive edge accordingly. Whether you're offering premium services or budget options, the key is to ensure your offering stands out, compelling customers to choose you over competitors.

Highlights

• Speed is a crucial competitive vector because it influences behavior significantly. 🏃‍♂️
• Consistency and reliability in services can reduce perceived risks for customers, building trust. 📏
• Offering a lower price can attract customers, but it's important to manage costs effectively to remain profitable. 💵
• The ease of use is achieved by eliminating unnecessary steps or complexities in customer experience. 🧩
• Winning in multiple vectors can lead to dominating your market, but excelling in one is often enough to be successful. 🏆

Key Takeaways

• Focus on excelling in one vector: speed, risk, price, or ease, to gain a competitive advantage. 📈
• Delivering faster doesn't necessarily cost more and can be a powerful differentiator. ⚡
• Offer consistency and reliability to build a strong reputation and decrease perceived risk. 🛡️
• Lowering prices isn't always the answer; instead, find ways to add value or reduce costs strategically. 💰
• Simplify the customer experience by removing complexities, making your product or service more user-friendly. 🚀

Overview

In the world of business, standing out from the crowd is essential for success. Alex Hormozi discusses how businesses can thrive by focusing on one or more of four key vectors: speed, risk, price, or ease. By prioritizing these vectors, companies can better meet customer expectations and outperform competitors. Hormozi suggests that being faster than competitors doesn't necessarily mean additional costs. Instead, it's about streamlining processes and thinking ahead to deliver swiftly.

Risk management through consistency and reliability is another vector Hormozi elaborates on. By ensuring predictability in service delivery and maintaining a solid reputation, businesses can mitigate risks that deter customers. Additionally, tackling pricing strategically can help attract a budget-conscious demographic without sacrificing profitability. The key is to maintain value while keeping costs low.

Finally, making the customer experience as smooth and hassle-free as possible can have a lasting impact on customer loyalty. This means cutting out any unnecessary complexities and offering a straightforward, pleasant experience. Hormozi concludes with a reminder that while excelling in one vector can lead to success, leveraging multiple strengths can truly dominate the marketplace.

Chapters

• 00:00 - 01:00: Introduction The chapter focuses on strategies businesses can use to outperform 99% of other businesses by choosing one of four competitive vectors. The first and most important vector discussed is speed, emphasizing the ability to perform tasks faster than competitors. The chapter explains that people adapt to behaviors quickly when latency is reduced, using social media platforms like Facebook and Instagram as examples.
• 01:00 - 06:00: The Importance of Speed This chapter delves into the critical role speed plays in motivation and efficiency. It highlights how immediate feedback, such as instant rewards or recognition, can significantly enhance motivation. The discussion provides a comparison between delayed and instant gratification, emphasizing that immediate rewards—a thumbs up or even real-time payments—are far more effective in motivating individuals compared to delayed incentives like bi-weekly paychecks. This principle is illustrated through an example of how a little red light or similar immediate signals can elicit positive responses from individuals.
• 06:00 - 11:00: Reducing Risk In the chapter titled "Reducing Risk," the discussion revolves around the concept of speed as a critical factor in business and its impact on behavior. An example presented is that of truck drivers who were historically paid per mile in real-time, leading them to forgo sleep and drive for extended periods, ultimately creating unsafe conditions. This practice was eventually outlawed. The chapter questions how speed can be leveraged as a competitive advantage, emphasizing the need to consider its various components in a strategic manner.
• 11:00 - 16:00: Competitive Pricing Strategy The chapter discusses the concept of Competitive Pricing Strategy focusing on the speed aspect. Speed comprises two core components: the time between purchase and delivery, and the time required for recurring tasks. The text emphasizes that reducing time in both these vectors is inherently more valuable. For instance, a 10-minute workout delivering the same results as a longer one is preferable. Similarly, obtaining leads in a significantly shorter time frame is more beneficial. The underlying principle is consistently finding ways to speed up current processes to enhance value.
• 16:00 - 21:00: Creating Ease for Customers The chapter discusses the significant competitive advantage businesses can gain by delivering services or products faster than their competitors. It emphasizes that speed does not necessarily incur additional costs, but rather stems from having a superior understanding of the process and steps involved, thereby achieving better results without additional expenses. The ability to offer quicker services can not only differentiate a business from its competitors but also allow it to charge premium prices.
• 21:00 - 27:00: Choosing Your Competitive Advantage The chapter titled 'Choosing Your Competitive Advantage' discusses the importance of selecting a specific niche to serve efficiently, emphasizing that having too many diverse customer types makes it challenging to provide quick and effective service. By narrowing down the customer base, a business can offer more value through standardized services and products. Templates are highlighted as one method to enhance speed and efficiency in delivering value to customers.
• 27:00 - 33:00: Exploring Case Studies and Examples This chapter discusses the importance of using templates and creating repeatable processes in business operations. Templates, such as ad templates, email templates, and presentation templates, help streamline tasks and ensure consistency. By implementing templated steps, businesses can pass on repeatable processes to team members, reducing the need for decision-making, which is often a time-consuming part of business operations. The pre-made approach is also highlighted, especially in the context of physical products or food, with McDonald's cited as an example for its revolutionary fast-food model involving pre-made food items.
• 33:00 - 39:00: Conclusion and Call to Action The chapter discusses a transformative moment inspired by a scene from the movie 'Founder,' where rapid service at a burger restaurant is highlighted. The protagonist's surprise at receiving his order immediately is portrayed as a pivotal realization, suggesting significant shifts in service expectations. This serves as a call to rethink traditional service methods. The chapter also praises a local eatery, Panini Cafe, emphasizing its quick and excellent Persian cuisine, further illustrating the impact of efficient service.

4 Ways To Get Ahead of 99% of People Transcription

• 00:00 - 00:30 you can beat 99% of other businesses if you only pick one thing to beat them on But there's four that you can compete on All right and so that's what we're going to talk about The first of the four vectors is speed How do I do what I'm going to do faster than everybody else of the four vectors I'm starting with speed because I actually think it's the most important of the four And I think the reason for that is that humans learn behaviors with decreased latency meaning like Facebook and and and Instagram or whatever you're watching this on like
• 00:30 - 01:00 has trained us to come back not because they pay us to come back because they have compressed latency for some positive outcome and the positive outcome they give us is a thumbs up They literally give us a little red light and other people give actual money but at a delay and they struggle to get people to do things So think about it like this You pay someone who works for you every two weeks It's much harder to motivate them than if you actually paid them in real time And paying someone in real time is actually so effective it's
• 01:00 - 01:30 illegal Truckers for example used to be able to get paid per mile and like almost essentially in real time And so they actually outlawed it because guys would just keep driving to the point of like insanity and wouldn't sleep for days and it was unsafe That's how powerful speed is because that is what trains behavior functionally the questions that we have to ask ourselves is okay if speed is going to be my competitive advantage it doesn't matter what we do right there's components to speed right so on one angle like you have to think about each of these larger
• 01:30 - 02:00 vectors in smaller sub vectors for speed it could be the distance between when someone purchases and when they get something right that's one vector of speed the other vector is that if you're doing something on a recurring basis how much time is it going to take each time so for example if I had a 10-minute workout it's going to be more valuable than an hourong workout if I could get the same results If I say I'm going to help someone get leads and I can help them get those leads in an hour versus waiting a week to turn on the ads that's more valuable right and so at all times it's always like how can we take what we're currently doing and do it faster
• 02:00 - 02:30 and I can promise you if you just did that one thing compared to everyone else in in your marketplace you just delivered faster you'll have a sustainable competitive advantage over them and be able to charge premium prices for it What's really interesting about speed is that speed rarely actually costs more It typically comes from idea alpha meaning like idea over performance like you've thought through the process of their steps better than the competition has And as a result you actually can get better outcomes Now part of this also comes down to what
• 02:30 - 03:00 types of customers you're picking If you have a hundred different types of customers it's very difficult to do things quickly because you're doing lots of different things for lots of different people This is why niching down also helps you provide more value because you're being more selective about the customers you're picking And then as a result you can be more templatized in the in the types of services and and and products that you ultimately offer And so there's kind of three different vectors that I think about uh in terms of like what can I actually do to improve speed because you're like okay I get that but how do I actually do it so number one is I want templates All right how can I take what
• 03:00 - 03:30 we're currently doing and make these into templates can I have ad templates can I have email templates can I have landing page templates can I have presentation templates can I have at least templated steps that someone's going to follow right all of these are just templates that we can pass on to somebody else Create a repeatable process If it's repeatable they don't have to decide Decision-m is typically the slowest part in the organization So how do we remove all decisions to speed up the time of completion the second one is pre-made So if you're in physical products or even food it's I mean fundamentally McDonald's changed the game in fast food because they started pre-making food They already had burgers
• 03:30 - 04:00 on the line So when someone ordered a burger they just handed it to them And if you haven't seen the movie Founder great movie He experiences this and he's like "No no no I I just ordered." And they're like "Yeah that's your burger." And he's like "No but I I just ordered." And they're like "Yeah that's your burger." And he's like "Huh?" And it's this big aha moment like "Oh this changes everything." And so sometimes if you know there was a great Persian place I used to go to It crushes in California It's called Panini Cafe Go check it out But they make amazing Persian food But one of the things I realized is right as the lunch hour started because I lived pretty close by back then They just
• 04:00 - 04:30 started grilling chicken because they knew that they were about to get the lunch rush and they knew that they were going to have people who wanted juj kebab Shout out for those of you who know All right And so they just thought ahead of time and it became really vi because I would show up and be like juj kebab extra rice my whole thing And they would just boom they would deliver for me because they didn't even have to make two order because they just knew certain amounts of things are always going to have demand And even if for some reason someday they're not going to hit that the benefit they get of the vast majority of their customers immediately getting served and how many tables they
• 04:30 - 05:00 returned faster more than paid for the small extra chicken that maybe they didn't they had to throw out at the end of the day The third element here and this happens a lot with services is availability Now what does this mean i'll give you a couple examples If you have a spa or a salon or something if you have more availability for people to book it means they want something and they can immediately get it faster They can get the appointment with you to get their nails done get their hair done Basically the sooner you can have that availability the more you will be able to convert and the more people will be willing to pay And so if someone says "Hey I have an appointment in 4 days or
• 05:00 - 05:30 I have an appointment in one day," they're probably far more likely to come to you and be willing to pay more for that one appointment But how do you increase availability sometimes it means you have to pay people more or extend their hours or hire more people But the reality is that this is one of those things that is one of the largest vectors in terms of increasing throughput on a business that is underappreciated by the vast majority of business owners And so when I invest in a company or I look at a company a lot of times I'm like oo like it's one of the those huge hidden diamonds I probably shouldn't even share this but it's one of those hidden diamonds that I can almost always drive 20 30 40% more
• 05:30 - 06:00 through business by simply better staffing the hours Even at acquisition.com we currently sell 12 hours a day 7 days a week And we're now investing so we can get to 20 hours a day because we have such a large international market We always want to increase our availability because I know the math behind this and it's a huge impact on the bottom line All right so the first vector macro vector that you can win on and you only need one but if you have more than one you just dominate everyone All right is that we went over speed Now the second is risk All right
• 06:00 - 06:30 so how can we make our thing not risky now think about McDonald's the example I gave you Well they're both fast and they're not risky So what does that actually mean now part of you are like "Oh no They're risky because of cancer and all this other stuff." Well well let's ignore that because why why do people not care about this stuff actually it's funny Speed It's not latency If you ate a burger and immediately had something growing on on on you no one would eat the burgers but because it happens 40 years from now no one cares Speed changes behavior And
• 06:30 - 07:00 lack of speed doesn't So what about risk so a way you can translate risk is reliability and consistency It's a different way of saying it which is when people buy this is especially important for services that are recurring where people get month after month after month after month they keep coming back again and again and again And so the question is how can we consistently match conditions between the perfect and ideal state and every state that happens afterwards and most people dramatically underestimate the amount of variables that exist in any given encounter And so as a result they have far less
• 07:00 - 07:30 consistency than they otherwise should So that's just the output Now what are the other components of this so I'll say one is consistency All right in terms of decreasing risk Uh we could also consider that reliability If you say you're gonna cut someone's grass but sometimes you're late or you uh show up a different day or you don't show up one week like that's a major hit People just don't want to deal with that stuff Like they're not willing to On the flip side if you're the type of guy where someone's like "You know what i could I could undercut your lawn care guy You know what i could I could clean instead of your cleaning person." A lot of
• 07:30 - 08:00 people are like "You know what i've been with Rose for for 10 years and she's never missed a day." You're like "I just I'm not willing to take the risk because she's already paid down so much." It's like "But I could do for 20% less." It's like it's just not worth it right that's real value that actually defends the business Now what other types of risk mitigation can we offer all right one of them is reputation right so this is where brand comes in So the consistency reliability typically happens after someone makes a purchase But how do we how do we shift the perception to the
• 08:00 - 08:30 customer that they're going to have a a high likelihood outcome that they're going to get what they want well one of the easiest ways is that you've gotten somebody else exactly what they wanted and that person found out about it Now if they don't know someone directly but then they just heard lots of whispers that's a reputation You've done it enough times for enough people that you just have a reputation for keeping your word right and a lot of people especially in the in the small business space especially especially in their like response base all of a sudden sometimes their their their cost to acquire customer goes up rapidly and they're like "What's going on what's happening?" But the thing is is that the
• 08:30 - 09:00 CPMs in your industry haven't gone up by double or triple in that same period of time So what is it is that your word of mouth people believe in positive word of mouth You think negative word of mouth doesn't exist Negative word of mouth is like 10 times as viral as positive And somehow you think that doesn't affect your sales Of course it affects your sales People who would have otherwise purchased choose not to because of something they heard or read online And so one is okay So we've got reputation we've got and we've got consistency So how do we do this how do we actually operationalize this now I've talked a lot about guarantees I talked about in
• 09:00 - 09:30 the offers book All right Um and a lot of people took that immediately like oh guarantees are the only way that we reverse risk It's just one of the components And I give that to people because I assume that a lot of people don't have a good reputation or don't have a reputation at all or they don't have enough customers to really develop a process to become consistent But these two things are how you deliver long-term risk mitigation In the short term you do guarantees Now again and I what's really interesting about this is that everyone assumes that I was like the guarantee guy but like a lot of my stuff that I sell has no guarantees right but the
• 09:30 - 10:00 thing is is that there's four different types that I cover in the book All right the first is unconditional guarantees When you're starting out that's a great way to do it Conditional guarantees If you do this and it doesn't happen then I'll do then I'll do why what's my what's my consideration right what am I going to put on the table if you're going to put this money on the table and a lot of times people mess this up Guarantees only work if you have stakes So if you don't have reputation you've got to basically it's literally like giving a a payday loan It's like you got to put you got to take your watch off and be like "If you give me the money I'll put the watch down right you can
• 10:00 - 10:30 take my car if I don't pay this loan back." It's the same idea just in business You're starting out You're like "Here's my shirt If I don't deliver these leads or I don't deliver a great back you know massage or I don't deliver a good fitness experience you can take my shirt." Those are the first two There's two other types of guarantees There's implied and then there's anti All right so implied guarantees is one of my favorite types to use which is just performance-based If you're good at what you do winners always want to compete on performance Think about your best salespeople They always want the most upside because they're good And so if you're actually good be willing to
• 10:30 - 11:00 put it's another way of putting skin in the game for you right and so just put skin in the game And people are far more willing to take risk if you take some risk for them So it's like we've got this big pile of risk How much are we going to eat down versus the customer eating down now here's the cool part is that you can shrink that pile of risk over time with reputation Which brings up the fourth guarantee which is an anti-g guarantee which once you do have reputation and you are consistent you don't see McDonald's saying "We guarantee that the burger is going to be good." You just know it's going to be
• 11:00 - 11:30 good right because you've had enough people Now people are like "Oh my god McDonald's is not good." Calm down You get the point from a business perspective All right so that's vector one is speed is how can we do whatever we're doing faster Number two is risk How can we do it more consistently how can we do it more reliably how can we and in so doing build our reputation over time and that consistency and reliability How do I do that tactically it's actually looking at as many variables that affect the condition or can affect the outcome for the customer as humanly possible and then actually
• 11:30 - 12:00 trying to control for all of them So BF Skinner famous behavioral psychologist said if many variables exist many variables must be studied And so you might find out so like for us to make videos we have like a hundred different little golden BB's little things that when put together make a good video And if we just do 98 it's just a little bit less good of a video If we do 97 it's a little bit less good of a video And so we just tried every time we learn a little bit more we add to that list Make another condition that we didn't realize existed that mattered We were just talking about one right before I did this video So we did this big filming
• 12:00 - 12:30 session where I did a walk-in talk and it was hot outside So I took my shirt off and I was doing it It was in Florida It was super humid And that whole series of kind of like walking talk things that I did murdered It was like some of my it was probably the single best recording session I've ever had in terms of performance of the clips in the session So we're like "Oh walk and talks work great." So then I did another series of walk-in talks where I'm just like in normal clothes because it wasn't it was actually cold out I think I put a jacket on and so I put a jacket on in the second one and literally I think it
• 12:30 - 13:00 might have been the actual worst recording session that I ever had What we got to see there is that it wasn't the walk-in talk that was the thing that made the shorts valuable It might have been me being shirtless which I have other considerations for which is like maybe maybe I'll start only Alex someday Uh but for now those are the first two speed and risk or risque if you will Now the third one is price It's cheap right so you can be faster you can be uh less risky or you can be cheaper Now we have
• 13:00 - 13:30 a fourth one too but let's talk about this for a second I tend to be the sell for more more expensive guy But you can win with any of these three vectors If people absolutely know that your stuff's amazing they'll be willing to pay more for it and they'll come to you instead of somebody else If you're the fastest they absolutely will come to you over other people because you can deliver on all these vectors of speed If you're the cheapest people will absolutely come to you Like to pretend that price doesn't matter is silly Of course price matters but so does value because value is a
• 13:30 - 14:00 sorry the the deal rather is the comparison between price what you pay and what you get right and so something is appropriately cheap if you get tremendous value for a low price but the answer is not hearing this and saying oh I will now lower my price that is certainly a terrible decision but instead it's day one deciding our competitive advantage the moat that we're going to build around is being cheaper than everyone else And you have to start that way day one That means
• 14:00 - 14:30 every component of the business from click to close to delivered is organized such that you can pass on as much of that cost-saving to the customer And so for example um if you were like hey I want to start a you know a marketing agency for small business owners Well in general typically a pretty bad business Why because it turns out really high Their volatility reflects onto you with an exception If you can make the services cheap enough I have seen it work well but I mean way cheaper than
• 14:30 - 15:00 you think I'm talking $100 to $300 a month for services that most people charge $2,000 a month for When you can do that now you have something that a lot of people are interested in So that even on their worst day of business they're like "Well I'm not going to cancel that." Like it's it's only a hundred bucks only 200 bucks and it certainly makes way more than that even on my worst month Right and to the same degree we there basically okay if I want to do this right if you're you like okay how do I actually build for cheapness all right so there's three ways that I think about this so number one is you
• 15:00 - 15:30 can have AI right day one now a lot of you guys should be already be investing this stuff like for sure AI is giving the best employees 10x the leverage they had before and so if there's ever been a time to have to pay people better it's been today because AI is now taking your best person making it 10 times as effective so it's like why would you not like you're always like man if I could have 10 10 John's or 10 Daniels or 10 10 Michaels man that would be amazing It's like well AI is giving you 10 Michaels and so be willing to pay the Michaels of your business more because you actually
• 15:30 - 16:00 do get more from them now more than ever So number one is AI The second is I'll just say automation because I think automation for some reason has like been forgotten about Um there's still lots of stuff that can get automated that doesn't necessarily have AI but you build day one with those automations in place Now the third is offshoring right or near shoring basically paying significantly less for the same labor but you're actually making this your entire business strategy from day one We are going to win by being the cheapest And if that's you then you state that
• 16:00 - 16:30 first and foremost in your marketing in your sales And what's really cool about it is typically when you're the cheapest the sales are pretty easy Uh marketing is not that hard The difficulty is being profitable But I've seen some tremendously profitable businesses that structure themselves from day one on being the cheapest And a little little tidbit a little pro tip that I think a lot of business owners are going to miss out on I think people are not are not getting this If you do all this stuff let's say you do the offshoring you do the automation to the eye You don't need to tell your customers You can just have
• 16:30 - 17:00 AI automation and offshoring into your business and you just sell a normal service You don't need to tell them you have a bunch of VAS in the Philippines You don't need to tell them that a lot of your stuff is from AI Don't say "Hey we're an AI design firm." Just be a design firm and then charge the same rates or a good deal for design because you just have an automated backend Great Amazing So that will allow you to get more cash flow in the business and ultimately provide more value All right So three vectors so far Speed how do I do it faster than anybody else in the market risk how do I do it more reliably
• 17:00 - 17:30 and build a reputation better than anyone else in the market cost how do I do it cheaper consistently and still be profitable than anyone else in the market and finally you have ease Now before I dive into these I want to make this point If you just win on one of these you can have an incredibly successful business If you can do multiple vectors then you'll crush everyone Real quick check this out So if you aren't sure what strategic competitive advantage you should be doubling down on um I'd love to invite you out to one of our scaling workshops uh that we have here in Vegas at our headquarters and my team can actually work with you on it But before you do
• 17:30 - 18:00 that you can download our free $100 million scaling roadmap um where you can plug in information and it will give you basically your step where you're at in the scaling process and ultimately give you the things you can help get to the next level But like I said if you want help from my team you can book a call after you download this It's free and we'd love to uh see if we can help you out A quote that I like is the best for the most people for the least And so best probably takes into account speed and ease um and risk And for the most it's going to be like total number of people that it helps And then for the
• 18:00 - 18:30 least right it's like and I've had different one like unique expensive sticky air How do I do something that no one else can do how do I have it that they keep buying it how do I have it that I have high gross margins and how do I have it so it's over and over and over again right so we think about these little monikers I think about this when I'm trying to build a business because ultimately these are the ways that you win These are the strategic modes So people talk about strategy but fundamentally it's going to have to ladder up to one of these things So if you're like "Oh by the way what's acquisition.coms it's going to be this one probably primarily and then I would say secondary vectors are these We're obviously not cheapest right and so
• 18:30 - 19:00 that's where I've built my business around Now if I had a different now not all the business our portfolio are are built that way right we have a a teeth whiting chain that's more around speed ease and cheapness right and so you get like you have to make sure that the strategy is is best tailored to the customer after you're trying to serve All right let's talk about ease I want to make a big point about ease If you want to make your product more convenient for customers you don't make something convenient because we want to like I want to do something to my
• 19:00 - 19:30 product It's actually the opposite which is why I think most products suck You make something easier by removing everything that is no longer required You make something easy by saying what is what is hard about this and then removing everything that's hard And so what's cool about this process is all like like easy is not the outcome It's removing all hard and then easy happens as a consequence Right so like easy is not noticeable It's like good design It should vanish Right like if you look at an iPhone an iPhone is the result of
• 19:30 - 20:00 what happens when you remove everything that sucks about a phone and what remains is an iPhone The the UX vanishes into the screen There's no menus You just hit what you need It immediately opens up Right this is how we have to think about ease And so this happens for services It happens for products And just like I was saying earlier with if many variables exist many variables must be studied And the nice thing is that customers will tell you what's what's hard thing number one what's hard thing number two what's hard number three what's hard thing number four And you have that list And then the way that you
• 20:00 - 20:30 make something easy is one at a time crossing things out one at a time until eventually people are like "Man this thing just works." And that takes work Take a thing figure out what makes it hard remove all those pieces and then what you're left with is something that's easy This is the work And I wish I could say this in a hundred different ways but like honestly that's the game And so when we're thinking about this it's like as a c like you want to think again click to close to delivered So when a customer is coming into your ecosystem into your
• 20:30 - 21:00 world how much information do they need to give do they have to give information the same information on multiple calls are we passing calls between reps like I'll give you a really simple example So right now you probably have like if you have a business that that sells via appointments right you have phone calls you have people manning the calls If you have multiple calls that occur in order for someone to buy let me tell you what happens all the time Call one tell me about your business All right tell me about the size of the business Tell me about some qualification Blah blah blah Okay cool So then let me set you up with Charlie Charlie will get you set up Okay cool Now we get on the phone with
• 21:00 - 21:30 Charlie Three days later Charlie's like "Hey how's it going what's the revenue of the business what's the size of the business what's the You're like "Dude I just I just told the Why am I Why am I telling I hate you already?" Right and so instead of doing that let me show you the thing is that this is a very binary outcome This is a very binary one A lot of them aren't A lot of them are more continuous but this is binary And the only thing easier than doing what I'm about to share with you is not doing it which is why most people don't your salespeople your setters or your sales people in general should take notes on the customers And here's what's cool If you start the second call and say "Hey
• 21:30 - 22:00 had a conversation with Charlie Charlie told me that your revenue is this your industry is this and the biggest issue you're dealing with is this Does that sound about right?" They're going to be like "Wow they actually did some homework This is a pretty buttoned up operation You know what that just made it easier." And so we have to think about every single little step That's just that's just the sale And if you don't think that how you sell affects their perception of the quality of service that you have you are kidding yourself Many people will make a judgment based on how good your product
• 22:00 - 22:30 is based on how good your sales motion is how clean it is how dial it is If you call someone in 30 seconds they're like "Man these guys are on it." They would imagine that if you make a promise about speed later guess what the past experience they have that they're going to use as judgment is on the sales process And so this again I'm just talking about sales because everyone like you know everybody likes talking about sales but um well I like talking about sales fine caught me Uh on the flip side is the back end is the same thing What's the onboarding call look like what are the activation points what
• 22:30 - 23:00 are the touch points with the customer what kind of reporting are we going to provide to them so they know that we're we're delivering them value what things do we give we're giving massage We giving a map where we show them where the pain is and we show them hey when they come back in this is where you said last time you were in pain How's that on a scale from 1 to 10 today wow that was really good Like I mean can you imagine you walk into a massage place you've been to before and they're like "Oh last time you struggled with your shoulder." And the reason that so many people like just going with the same person is because the business have so few processes And so it's like well I might as well just go with the same masseuse because she knows me But if every masseuse or massager I don't know the
• 23:00 - 23:30 male version whatever massager uh already knew the pain that you were dealing with beforehand Could you imagine what a superior experience that would be as a company and then also how much more would you be able to keep customers whereas when the masseuse leaves they take all the customers that went with them Not very sticky But if every massage person knew all the pain points of the business that would make it easier Easy is when everything that's hard vanishes And that's all that's left is the value If you're looking at these four how can I do it faster how can I
• 23:30 - 24:00 make it more reliable how can I do it cheaper how can I make it easier for the customer the end state the the kill shot is that you have all four Now to have all four it almost always has to be tech Now you can typically have three of the four if you have labor All right so if you have a service based business you're basically going to need to pick three But specifically you need to make sure you have one Now why why am I so hard on this one thing well customers do not understand multiple benefits Now they can like from a messaging perspective Now when they buy something and they experience it that's different But from
• 24:00 - 24:30 a marketing angle if you say "Hey we're the fastest we're the least risky and we're the easiest," it's too much Just focus on the core vector And if you're like which one do I pick pick the one that values the most to your customer Pick to the one that they care about the most And so if you know that your people care the most about speed then speed's the speed's the angle If there's a huge cost when something doesn't go well with a business then risk is the angle right or the customer whatever right and if and if it's just in general a huge pain to do this thing then how can I make it
• 24:30 - 25:00 easy so I'll tell you there's a there's a lady that I know in Albuquerque New Mexico that I used to um that I used to go to church with when I went to church and she had a massive business in in in New Mexico And her entire business was built on one thing speed and ease She had a DMV business where she just privatized getting people their IDs That was it That's all it was And I remember her talking to me and she was like "Yeah they just passed a new law that everybody uh in New Mexico has to get a
• 25:00 - 25:30 new ID because we just changed the license." And she was like "Well that's uh you know 12 million people times 50 bucks." And I just remember her saying that I was like "How elegant right?" And the thing is is that her $50 is like she was able to get people in and out in 15 minutes from the time they walked in the door to the time they left Could you imagine how lovely of an experience that would be everybody when they think about getting their idea right now it's like just pain All you think is just like waste of a day just frustration dealing with inept people who have no urgency no
• 25:30 - 26:00 regard for other people and just generally deal with you as a nuisance Like you're somehow inconveniencing them in their day of not working that you have disrupted their day of not working by existing and breathing on them right of course you hate them And so she just had a business not hard to beat right when that's the standard Again there are industries that are like this that are privatized that still no one tries to compete in And so if you want to get into a new space or you already have a business and you're like "How do I actually win i feel like I'm the same as
• 26:00 - 26:30 everybody else." Pick one and dominate And so if you're wondering which of these do I pick obviously you start with the customer reverse backwards But let's do the DMV example I just said Is she going to win on being cheaper than the government no I'm pretty sure it's free or it's a nominal price in order to get the new the new IDs And so she's not going to win on cheap But what could what else could she win on speed ease In other ways the ease can also be like positive customer experience Like those are things that improve the overall experience for the customer She could could she double her prices i'll bet you plenty of people probably be willing to
• 26:30 - 27:00 pay $100 to not have to waste a day right so she doesn't have to win on this right so she has to pick the one that that now risk I mean as long as you get the idea I mean you have to be good enough at this right but she's going to work on her reputation by being having a reputation of being faster and easier right and so if you're trying to pick one you pick the one that's going to matter most to the customer And if you are competing in a space that has a lot of cheap or sometimes even free competitors just remember this fast beats free So back in the day there was
• 27:00 - 27:30 Napster which some of you guys may have remembered It's probably before actually probably half of y'all's time Uh there's something called Lime Wire that happened later Uh there was Kazah there was all these different uh basically sharewware things where you could share files with one another and ultimately just like steal music for free I'll just be honest That's what it was Right So when that was happening how did a company like Spotify come in not really free um and beat them they won on speed and they went on risk because when you downloaded Lime Wire you knew that you were
• 27:30 - 28:00 downloading all sorts of viruses to your computer number one And then number two on Spotify it was like it was just you just picked the song you could immediately start listening to it And so they beat an industry that was literally free by being faster And I remember when I uh when I went to get Chipotle once this was at University of Maryland I was visiting the campus And it has I think it's like the number one highest grossing Chipotle in like the nation This thing is packed It's in the middle of like the the Commons or whatever right and it was happened to be Halloween the weekend that I went to visit You can imagine And so at
• 28:00 - 28:30 Halloween for Chipotle they do this thing where if you wear any kind of foil you dress up like a burrito they like give you free burritos whatever And I didn't know I didn't think that that was the day that I wanted to go have Chipotle So I walk up and I'm like "Oh." And it was it was imagine a grocery store parking lot So massive parking lot There's a twot there The line stretched through the entire parking lot It was insane And I just remember thinking to myself when I got there and I was like I would pay $20 to just have the burrito that I want and not have to wait in this line even if it's free And that was the
• 28:30 - 29:00 moment where I cinched that that that that concept Fast beats free So if you're not sure start with the customer reverse backwards look at the competitive landscape You probably one of these one of these four vectors or maybe more If you guys are like "Man this is so good." Let me tell you a cool little secret If this just feels true you're like "This is so true." Guess why it's so true because these four are the value equation So your risk is your perceived like achievement Your ease is your
• 29:00 - 29:30 effort and sacrifice Your speed is your time delay And then your your your cheaper is going to be ultimately the dream outcome Those are the elements of value And so all that is I put different words around something that is these are the core elements of value And because they're the core elements of value those are the things you have to translate to your customer in your marketing as your one defining winning angle And if you haven't picked the book you can go grab it Um it's free on my podcast and it's on Amazon and you can probably find it wherever you search it Hey if you like this video you might like this video uh
• 29:30 - 30:00 because it's similar to this one except even more awesome