The Game with Alex Hormozi Supply vs. Demand: Stop Focusing On The Wrong Problems | Ep 899
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Jun 3, 2025 Business owners often hit a wall, not from lack of effort, but by tackling the wrong challenges. Discover how to identify if you’re facing supply or demand constraints and the strategies to effectively address each. Insights are drawn from various industries, showcasing how reallocation of resources can lead to sustainable growth. Tune in for actionable advice on enhancing customer acquisition and profitability.
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Identify Core Business Constraint
- Businesses are either supply constrained (too little capacity) or demand constrained (too few customers), but not both simultaneously.
- To identify the constraint, ask if doubling ad spend would double sales or just create chaos.
Fix Supply Constraints with Pricing
- If fully booked and income is stagnant, raise prices significantly to increase revenue and reduce workload.
- Alternatively, serve more customers by changing service delivery ratios or hiring and training more staff.
Shift Focus From Product to Marketing
- When your product is great but growth stalls, focus marketing efforts to attract more customers instead of over-improving the product.
- Avoid constant changes that may degrade product or service quality; let natural improvements occur.