Alex Hormozi: Hardcore Business Lessons I Learned From A Dealer

The video is about six business lessons that Alex Hormozi learned from his first job working at a fur coat dealer, including how to deal with angry customers, creating new products, and using "no" to get customers to say "yes."

This video by Alex Hormozi was published on Mar 15, 2023.
Video length: 08:01.

In this video, Alex Hormozi shares six million dollar lessons he learned from his first job working at a fur coat dealer.

He discusses lessons such as how to deal with angry customers, creating new products, using the power of "no" to get people to say yes, and using sawdust as a way to create value from excess materials.

He emphasizes the importance of taking ownership of mistakes and validating customer complaints, as well as finding creative solutions to business challenges.

• Validate the customer's anger in a real way.
• Realized that in the summer they never had any demand because people aren't trying to buy fur coats in the summer.
• Get customers to say yes by saying no.
• Sawdust is anything in a business that is created in excess that you normally throw out.
• Look for ways to repurpose waste products in your business.

Hardcore Business Lessons I Learned From A Dealer - YouTube

Dealing with Angry Customers

• Validate the customer's anger in a real way.
• Don't downplay the issue, take ownership of it.
• There can only be one person in the angry boat.
• Trying to downplay the customer's anger creates more of a discrepancy between the two people.
• Validate the customer's anger and find a solution to the problem.

Creating New Products

• Realized that in the summer they never had any demand because people aren't trying to buy fur coats in the summer.
• They came up with a genius idea to store and condition the coats for customers during the summer.
• Every year, customers were asked to bring their coat back to the store for repairs and conditioning.
• Created an insurance product for fur coats by charging customers for the safety that the coat will continue to provide value for a longer period of time.
• The cost to deliver on this was low because they had one 18-year-old, two air conditioning units, and a storage facility.

Using "No" to Get Customers to Say "Yes"

• Get customers to say yes by saying no.
• When customers were asked if they wanted anything else besides storing and conditioning their coat, they would say no.
• Implied in that response was a yes to storing and conditioning the coat.
• Align it so that them saying no actually gets them to say yes to the upsell.
• Flip the script and align it with the customer's subconscious automated response.

Hardcore Business Lessons I Learned From A Dealer - YouTube

Using Sawdust to Upsell

• Sawdust is anything in a business that is created in excess that you normally throw out.
• Take the scraps from all the coats that they would make in the back and make tiny fur balls out of them.
• Give the fur balls to customers as a little piece of bait to get them to take them up on the upsell.
• Sawdust can be used to create new products and increase revenue.
• Look for ways to repurpose waste products in your business.

Using Bait to Get Customers to Say Yes

• The fur coat dealer gave away little fur products as a bonus to customers who turned in their coat.
• The little fur products cost the dealer nothing but still had perceived value to customers.
• Customers who turned in their coat were charged for storage, even though they got the product for free.
• Capitalism is the only system where both parties say thank you after an exchange.
• Creating perceived value can be a powerful tool to get customers to say yes.

Doing the Boring Work Consistently

• The fur coat dealer limited the number of coats per customer and had multiple strike downs on the price to create a perception of demand.
• By creating a continuity product where customers would come every year to get their fur coat insured and fixed, the dealer became the dealer for life.
• Small business owners should do the same thing consistently for a long period of time to become big business owners.
• Big business owners do all the basics consistently every day, even if they are boring.
• Building a big business takes big time, but it also creates even bigger outcomes.

Watch the video on YouTube:
Hardcore Business Lessons I Learned From A Dealer - YouTube