The Game with Alex Hormozi The 3 Most Important Lines In Your Business | Ep 364
Jan 18, 2022
Discover the three crucial lines that can transform your business: sell price, value, and cost. Explore how these elements interact to create profitability and enhance customer experience. Learn about real-life combinations of these lines that drive growth and customer retention. Uncover the golden ratio that maximizes value while minimizing costs, ensuring that customers feel they are getting a surplus. Tune in for insights that can propel your financial success and entrepreneurial journey!
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Three Lines of Business
- The three most important lines in business are price, value, and cost of goods.
- Understanding their interplay is crucial for success.
Netflix Example
- Netflix succeeded by offering immense value at a low price, disrupting Blockbuster.
- Their low incremental cost per customer enabled high gross margins despite low prices.
Maximize Customer Surplus
- Focus on providing high value at a low cost, creating a large customer surplus.
- This strategy leads to viral growth and higher profitability.