The Game with Alex Hormozi My Worst Mistake | Ep 271
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Jan 22, 2021 Reflecting on pivotal missteps, the host discusses a costly error that led to a $5 million loss due to lowering prices. This decision, aimed at reducing customer churn, underscores the fine line between short-term solutions and long-term consequences. The conversation shifts to essential moral lessons: the necessity of pricing strategies, the importance of raising prices, and understanding industry benchmarks. It’s a candid look at the challenges of entrepreneurship, showcasing that losses can impart valuable wisdom.
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The $5 Million Mistake
- Alex Hormozi believed his company struggled with churn and tried to fix it by offering more services for less money.
- This decision cost him $5 million a year in profit without impacting churn.
Pricing Strategies
- Avoid lowering prices as a solution to business problems.
- Raise prices strategically and understand industry benchmarks before making decisions.
Decision-Making Framework
- Categorize decisions as reversible or irreversible.
- Make reversible decisions quickly, but analyze irreversible ones thoroughly.