Alex Hormozi: How To Close Prospects By Saying "No" First

The video is about a sales tactic that involves getting prospects to say "no" to additional offers in order to increase the likelihood of them saying "yes" to the main offer.

This video by Alex Hormozi was published on Nov 3, 2020.
Video length: 08:14.

In this video, Alex Hormozi shares a sales tactic he learned from a successful furrier, Richard Schwartz, which involves getting prospects to say "no" to an upsell before saying "yes." This tactic is particularly useful for upsells that are not complex sales and can be applied to various industries.

Hormozi gives an example of how Schwartz used this tactic to sell conditioning services for fur coats by offering free fur earmuffs and then asking if the customer wants anything else, to which they would say no, unknowingly agreeing to the upsell.

Hormozi suggests using this tactic by asking if the prospect wants anything else after recommending a product or service, which can lead to an automatic close of the sale.

• Alex Hormozi shares a sales tactic that involves getting prospects to say "no" to additional offers.
• This tactic applies to bolt-on or upsell sales that are not complex sales.
• The power of saying "no" is that it closes sales like crazy, with 90% or more of people taking up the upsell.
• The easiest way to use this strategy is to ask if they don't want to buy anything else or pay full retail for the product.
• This tactic works because people don't want to feel like they're being sold something.

How To Close Prospects By Saying "No" First (ALEX HORMOZI) - YouTube

Introduction

• Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
• He shares a sales tactic that involves getting prospects to say "no" to additional offers in order to increase the likelihood of them saying "yes" to the main offer.
• This tactic is based on the experience of Richard Schwartz and Mano Schwartz Furriers, a fourth-generation furrier in Baltimore.

Applicable Sales

• This tactic applies to bolt-on or upsell sales that are not complex sales.
• These sales are usually attributed to supplement sales, meal sales, or additional products that go with the core offer.
• Upsells are important to the business in terms of driving bottom line profit and liquidating acquisition costs.

The Power of Saying "No"

• The trick is to get people to say "no" to additional offers.
• This tactic closes sales like crazy, with 90% or more of people taking up the upsell.
• The reason for this is that people don't know they're being sold.
• The example used is from Mano Schwartz Furriers, where they would get people to agree that they don't want anything else.
• This tactic immediately added a couple of hundred bucks to every single coat, and they were doing thousands of coats.

How To Close Prospects By Saying "No" First (ALEX HORMOZI) - YouTube

Using the Strategy

• Think about how you can use this strategy in your business.
• The easiest way is to ask if they don't want to buy anything else.
• You can also use this strategy by asking if they don't want to pay full retail for the product.
• By doing this, you automatically close the sale that you just recommended.
• This tactic works because people don't want to feel like they're being sold something.

Using "No" to Close Prospects

• Getting prospects to say "no" to additional offers can increase the likelihood of them saying "yes" to the main offer.
• People are contrarian and feel like they're being sold, so using a psychological bias can work to your advantage.
• Assume close tactics can result in 90%+ take rates on upsells.
• Example of a furrier giving free earmuffs but charging for storage and conditioning, resulting in more sales.
• Small upsells can be massive profit drivers in a business.
• Using this strategy can work well for hand-to-hand small upsells, especially in brick and mortar service businesses.

Being Creative in Business

• Winners think about how to use strategies in their business, while losers think it wouldn't work for them.
• There are huge pockets of profit that many small business owners miss out on.
• Being creative and using your brain can help you find ways to use strategies in your business.
• Don't be afraid to execute accordingly and try new things.
• Using these strategies can help increase profits and drive success in your business.
• Show love and support by dropping a tag or like if you found the video valuable.

Watch the video on YouTube:
How To Close Prospects By Saying "No" First (ALEX HORMOZI) - YouTube