The Game with Alex Hormozi Price to Value | Ep 345
Nov 11, 2021
Discover how the relationship between price, value, and cost can drive success in your business. Learn the golden ratio for providing value while keeping costs low to create customer surplus. Alex shares practical examples, including strategies used by major companies like Netflix, to illustrate the importance of perceived value. Tune in for insights that can help you attract more customers, enhance profitability, and foster long-term loyalty!
AI Snips
Chapters
Books
Transcript
Episode notes
Three Key Business Lines
- Every business has three key lines: selling price, value to the customer, and cost of goods.
- Understanding the interplay between these lines is crucial for success.
Customer Surplus and Virality
- Customer surplus is the difference between the value received and the price paid.
- A larger surplus leads to increased perceived value and virality.
Netflix Example
- Netflix succeeded by offering immense value at a low price, maximizing customer surplus.
- Their low incremental cost per customer contributed to high gross margins.
