Alex Hormozi: I Broke Down Every High Margin Service Into 6 Buckets [Delivery Cube]

Last updated: Jun 15, 2023

The video is about a creative process called the service delivery cube that Alex Hormozi uses to expand product lines and provide more value to customers in service-based businesses.

This video by Alex Hormozi was published on May 17, 2021.
Video length: 09:12.

In this video, Alex Hormozi introduces the concept of the "service delivery cube" which is a creative process he uses to expand product lines and provide more value to customers.

The cube consists of six components: ratio, client involvement, support level, consumption method, speed, and convenience. By analyzing where a service fits on each of these components, entrepreneurs can uncover hidden value within their company and potentially create new, more valuable products.

This process is specifically geared towards service-based businesses.

  • Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
  • He has done 120 million in sales across his four companies in the last four years.
  • The Service Delivery Cube is a creative process that Alex Hormozi uses to expand product lines and provide more value to customers in service-based businesses.
  • The Service Delivery Cube helps to find hidden value within a company using existing resources.
  • Fast beats free, so speed and convenience are important factors to consider.

I Broke Down Every High Margin Service Into 6 Buckets [Delivery Cube] - YouTube

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Introduction

  • Alex Hormozi is an entrepreneur, investor, and CEO of Acquisition.com.
  • He has done 120 million in sales across his four companies in the last four years.
  • He shares lessons that have worked well for him in this time period.
  • One of the key ways to make customers more valuable is by delivering more valuable services.
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The Service Delivery Cube

  • The Service Delivery Cube is a creative process that Alex Hormozi uses to expand product lines and provide more value to customers in service-based businesses.
  • It has six components or sides.
  • The first component is the ratio, which is the client ratio for a service.
  • The second component is the extent of client involvement, which can be do-it-yourself, done with you, or done for you.
  • The third component is the support level, which is the channel or channels that clients have access to for support.
  • The fourth component is the consumption method, which is how clients consume the information.
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Using Existing Resources

  • The Service Delivery Cube helps to find hidden value within a company using existing resources.
  • It can help to monetize excess capacity or byproducts.
  • It can help to repackage the same thing and drive more value to clients.
  • It can help to find opportunities to expand product lines.
  • It can help to provide more value to clients without incurring more cost.
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I Broke Down Every High Margin Service Into 6 Buckets [Delivery Cube] - YouTube

Speed and Convenience

  • Fast beats free, so speed and convenience are important factors to consider.
  • Providing fast and convenient services can be more valuable than providing free services.
  • Speed and convenience can be achieved through various channels, such as text, chat, email, phone, or zoom.
  • Live or recorded onboarding processes can also provide speed and convenience.
  • Speed and convenience can be a competitive advantage in service-based businesses.
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Service Delivery Cube

  • Service delivery cube is a creative process used to expand product lines and provide more value to customers in service-based businesses.
  • The cube is made up of six buckets: ratio, effort, support, consumption, convenience, and speed.
  • Ratio refers to whether the service is one of many or a small group.
  • Effort refers to whether the service is do-it-yourself, done with you, or done for you.
  • Support refers to the channels of support available to clients, such as text, phone, or email.
  • Consumption refers to how the service is consumed, whether it is live, recorded, written, audio, or video.
  • Convenience refers to how the service can be made more convenient or less convenient for clients.
  • Speed refers to how the service can be delivered in half the time or made faster for clients.
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One 10x to 110

  • One 10x to 110 is a mental exercise used to come up with new ways to repackage products and offerings to become more valuable.
  • The exercise involves thinking about what would be included if the price of the product was 10 times more or one-tenth of the current price.
  • By thinking through both processes, new ways to repackaging products and offerings can be discovered.
  • The goal of the service delivery cube and one 10x to 110 is to find excess capacity in the business to generate more revenue and profit without taking on more expenses.
  • These exercises can be used to provide more value to customers and expand product lines.

Watch the video on YouTube:
I Broke Down Every High Margin Service Into 6 Buckets [Delivery Cube] - YouTube

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