WEBVTT

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Let's be real, you're not gonna change your entire business for the holidays to make something

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sound different, but you can make it look different based on how you present it.

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The wealthiest people in the world see business as a game.

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This podcast, the game, is my attempt at documenting the lessons I've learned on my way to building

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acquisition.com into a billion dollar portfolio.

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My hope is that you use the lessons to bring your business, and maybe someday soon, partner

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with us to get to a hundred million dollars in beyond.

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I hope you share and enjoy.

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The holidays are upon us, and most businesses make more money in the last month of the

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year than they do any other month.

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If you own a business, or you work for a business, this is your opportunity to capitalize.

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And every one of these presents, I'm going to open up and give you one holiday money making

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tactics.

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Starting with, let's open this guy up.

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What do we have inside?

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We've got diapers, and we've got baby bottles.

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Now, what do these have to do with making money?

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Inside of diapers, and the baby bottles, is actually one of the strongest concepts for

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holiday marketing, which is something called a loss leader.

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So what is a loss leader?

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A loss leader is basically where you sell a very well understood product, and you sell

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it for less than the market understands the prices for it.

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So you sell it at a loss.

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Now, why would it be called a loss leader?

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The leader part of it is that it brings people in the door.

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Most people know that if you have a baby, you got to buy diapers.

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The highest percentage of the population you have babies buy diapers.

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They all need diapers.

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All the thing that most of them understand what the price is for, that almost all customers

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will buy, so that you can bring them in the door.

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Because if you have the cheapest diapers, they're going to come by diapers from you.

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Now, what they might not know the price is for, are all the ancillary purchases they

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might make once they come into your store, whether that's a digital store, or a physical

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brick and mortar store.

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Like these non-drib bottles might have insane margins in markup compared to the diapers.

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And so trying to make 2 quarters more on the diapers compared to making dollars on the

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baby bottles is where you can make up what you lost here, but you make it up in significantly

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more profit and total unit sold.

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How do you use this for a quality promotion?

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What you want to do is you want to look at your product stack.

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So if I have my services, and so there's different components to my services, like for

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example, and I use fitness a lot, you have access to a facility.

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That's a component.

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You also have accountability, which is another component, the actual workouts or service

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with a trainer.

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You could also have nutrition, meal prepping, eating out guides, alcohol guide for the holidays.

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So there's lots of components to whatever it is that you sell, whether it's services

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or products.

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Many people sell something like this as a bundle, and there's nothing wrong with that.

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Makes it harder for other people to compete with you on price.

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But if you take out one of these pieces, let's say this one's accountability, I guess,

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and then I say, hey, I'm going to make this 90% off.

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People are going to be like, holy cow, that's a great deal.

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And so what happens is you can promote this 90% off thing, which is what a huge holiday

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promo big bash would be like.

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And you're like, well, you don't just want accountability, right?

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You probably also want some help with your food.

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You probably want some workouts, you probably want to access the facility, you probably

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want these other things.

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And if you're like, you know what, you're right, I do kind of need that stuff.

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But the reason they came in doesn't necessarily need to be the way you make money.

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And so that's the big theory or strategy behind loss lead.

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And I'm pretty sure diapers.com, I think, was what it was called.

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This was the strategy they actually used to take over the baby market.

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Because they sold them cheaper than everyone else did, but they made all the profit up

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on the other ancillary up self.

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And so this works for products, it works for services, and it even works for technology.

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Look at what you have.

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Put it into an itemized list of all the things you could potentially market or advertise.

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And then you peel off one of them, I call it splintering your offer.

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And then you make an insane discount around one of those pieces.

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Now ideally, even if you lose a little bit of money on this, you will make it up in the

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total amount of leads.

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And the reason it's so important in general to have a promotion going on during the holidays

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is the thing I said at the very beginning.

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Most businesses make more money in the last month of the year.

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And that's for two reasons.

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One, because they advertise more.

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And two, because people want to spend more.

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So if people are buying during that month, then that's when you want to be selling even

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more.

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Alright, so that's it with our loss leaders.

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Now we have gift number two, gift cards.

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What do gift cards have to do with holiday promotion?

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First off, gift cards are one of the most lucrative things that you can sell in general.

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Did you know that Best Buy has an insanely low redemption rate?

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So when grandma gets all the kids, Best Buy gift cards, the percentage of people who actually

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spend the money is very low, but it essentially is a loan that a customer gives to a business.

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And the business just keeps the cash on their balance sheet, can earn interest on it while

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they wait to redeem for it.

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And after a certain point of expiration, they can just keep all of the money without even

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providing goods.

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Unbelievably profitable thing.

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People literally give you money for nothing, not a bad idea.

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But how do we use this besides the way Best Buy did to generate leads?

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So I call this the gift card strategy.

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And this is one that I used all the time, my brick and mortar location.

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You offer $200 gift cards to your services, one purchase worth of services.

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So if you give out massages or you have a membership to a facility or you do cleanings,

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it doesn't really matter what it is, but one unit's worth.

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You do that dollar amount as a gift card.

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That's number one.

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One full unit in dollar amounts.

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That's step one.

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The next step is that you market to your existing customer.

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Step three is you say, this is a $200 gift card, but I'm selling it for 90% off or 80%

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off, whatever you want.

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I'm going to say 90 because I'm going, I'm going big here.

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So your $200 gift card is actually 20 bucks, which is 90% off.

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Remember, we're trying to get attention.

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Everyone else is doing promos and we need to break through the noise and this is a crazy

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good promotion.

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But here's the catch only as gifts for friends and family.

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So this is the ultimate stocking stuff.

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You tell your entire client base they can buy two of these gifts for other people and

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they get the credit for it being $200 because it's a gift card.

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So imagine you open a gift and it says $200 on it.

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You're stoked.

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The fact that grandma went to Alex's gym and she only paid $24, you don't know that.

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Nor do you really care.

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But this is the genius part of this strategy.

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Number one, this is an insane promotion.

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So you're going to get a lot of attention and a lot of people are going to want to buy

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it.

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Number two is that you're actually going to get paid money for selling these gift cards.

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But here's the secret.

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All of this is new customers.

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And so what this basically means is that you're going to get paid to get new customers.

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And you would probably give the services away for free anyways to get a customer.

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But rather than marketing and spending money to get someone in the door to try your stuff

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out, you're going to get paid to do it.

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But not only that, these are the highest quality customers because they're referrals and referrals

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buying higher rates, staying higher rates and because they're coming from somebody else,

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they can usually help assist them in kind of onboarding and figuring out the app if you

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need to check in for a facility or whatever it is that you sell.

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You get the assist from the friends.

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You can double a client base because you can get every single person to bring not one

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but two.

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And the reason we limited two per customer is because it increases the perceived value.

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You could sell two units and make it 70% off.

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Two units would be $400 and you give 70% off, which would be 60 bucks.

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Doesn't matter.

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You're getting paid to get new customers and the highest quality source.

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And so one of the important details to do with this is that when you make the sale, ask

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them who they're going to give it to and get the contact information.

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So not only that, you're actually going to get these as leads.

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So if for whatever reason that person doesn't redeem it, you can follow up with the lead

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to bring them in and because you'll have the contact information, you can do a three-way

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intro with the customer who bought it and the prospect.

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But what else can you do with this?

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The gift card is for $200, right?

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Well, what if everybody who comes in, you have a sales console with and you try and sell

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them off $1,000 thing?

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Well, now you take that $200, you mark it off and you can turn these into $800 sales.

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And that's the last step of this.

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The big picture, one full unit, $200, $400, whatever, one unit or whatever it is you sell

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is limit it in some way, two, three people per person, make it 90% off, 80% off, so you

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get paid for it.

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Limit it to referrals of friends so they're not going to use it on themselves so they

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bring you more customers.

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Get the three-way introduction so you get the leads and then when you bring them in,

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actually sit down at them for a sale.

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And this is one of those great things that you can use to immediately attract tons of

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new customers at a profit during the holidays when it's hard to break through.

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So that's enough with that.

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All right, now we're going to talk about what's inside of here.

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Ah, it's tickets, so this strategy is about high ticket, so let me explain how this works.

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You look at what your services are and think, what would the ultimate version of this be?

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Like 10 times or 50 times as expensive as what I've ever I normally charge.

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Like a complete transformation, this works especially well with services, which is what

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I'm focusing on, but you could probably think of a version of this for a physical product.

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If my normal client load, let's say at my business is I have 100 clients, I can't manage

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more than that.

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Okay, I'm going to limit this promotion to 5% of my customer base.

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If you're a hair salon person and you have this many customers or you're a car product

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of this many customers, it doesn't really matter.

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But you say, this how many I have and I'm limiting it to this, you say, hey, I'm doing

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this personal program that you're going to get more service.

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This is the 10x to 50 or 100x of your normal price with a massive scarcity.

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So you limit it to 5% to 10% of your customers, I'd recommend five if it's your first time

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because you want to sell out.

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That's the point.

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You can bump it to 6%, 7%, let's say that you sell normally a $200 thing.

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Well, then you would sell something that's between $2,000 and $20,000, which sounds like

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a huge price gap.

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And it is, but the thing is that most customers are fractal.

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And so what that means is that it's 80, 20% of customers will spend five times more

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than 80%.

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And so when you do 5%, it's actually 80, 20 twice.

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So you have the remaining 20 that are the five time spenders and you do another 80, 20

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on that.

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That's the magic between 5% because those customers are two standard deviations above

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the rest of the group.

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And we capitalize on that by making a product or a service package that people like that

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want to buy because it's scarce.

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Let's say you had a hundred customers and you sell five of them, a $5,000 package, you

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make $25,000.

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And if you're used to making $10,000 a month or $20,000 a month from your remaining customer

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base, you can literally double your revenue that month only by selling 5% of your customers

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a much more expensive thing.

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The key to making this work, you build lots of hype around it before the holidays.

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You advertise the crap out of how scarce it is and you talk about the minute it's going

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to go live and you prepare people, you say, hey, have your credit cards ready, be ready

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for it because I'm going to drop it and they're going to sell it immediately.

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And then when you do the moment you get your first sale, let everyone know four left,

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three left, two left, one left, sold out.

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Every time you do that, you'll drive even more FOMO and more scarcity and more purchases.

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So that's the high ticket, high scarcity strategy.

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Hey, most of the nation, quick break just to let you know that we've been starting to

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post on LinkedIn and want to connect with you.

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All right.

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An extra request and note letting me know that you listen to the show and I will accept

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it.

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There's anyone you think that we should be connected with, tag them in one of my or Laylist

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posts and I will give you all the love in the world.

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All right.

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So let's get back to the show.

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Let's open up our next gift.

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We've got shirts.

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Wow.

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Not only is there one shirt, there's two shirts in this package.

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Now, how are we going to do one shirt to get someone to buy two shirts?

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I'll tell you.

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So this strategy is called free with prepay by X, get Y, free.

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We're talking holiday season.

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We're talking special occasion.

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The key to this is how insane you make the free thing.

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If you're giving away your core service, then what you can do is think about what's the

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highest margin service I have and package that in a way that you can have people prepay to

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get X amount free if it's services or buy X and get Y free and I'll tell you the first

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place I learned this.

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So there's a place in Nashville.

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I saw and I came back 10 years later and it was still there and it had expanded.

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So I was like, oh, they must be doing well.

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And their entire window pane said buy one, get two free and it was pairs of boots.

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And I was like, that's wild.

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So I went inside the store and I was like, huh, I wonder how this works.

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And the boots were all 600 bucks.

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Now if you're familiar with cowboy boots, cowboy boots probably run about $200 normally.

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So all they did was they tripled the price for one pair and said buy one, get two free.

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And they capitalized on the fact that for them specifically, there was bachelor at parties

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and all the girls come in and it's like, well, I'll buy one.

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And then my friends will get two free or whatever.

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And ideally, if you really want this thing to crush, you actually give more away free

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than you charge for.

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So it's buy one, get two free.

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It's not even just buy one t-shirt, get a second t-shirt free.

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It's buy one t-shirt, get three t-shirts free.

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But the thing is is that for most products and services, you can increase the price of

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the one.

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And so if you want to have a level of service that you haven't offered before that you

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want to do specific for the holidays or a product you want to come out with, this is

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the perfect time to do it because no one had any comparison for the pricing.

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Let's say normally I would sell these shirts for five bucks a pot.

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I might say buy one shirt for $10 and get two free.

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Now what ended up happening is that I got $10 and I sold three shirts, which is really

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just like a 30% discount, not a huge deal.

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But the perception of how much more compelling get one to get more free than what you paid

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for is the thing that drives the buying behavior.

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So I just gave you a few different physical products examples, but this is actually super

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deadly with services.

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But it can be abused and then some people can become dependent on this.

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There are businesses that I have looked at in order to invest and decided not to invest

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because they were too dependent on this because it's such a strong strategy.

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And the reason it's so strong is because there's all the cash is front loaded.

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So normally if let's say you have a recurring membership of some kind, that's $100 per

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month.

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That means it's going to take you a year to get $1,200.

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But if you say, hey, I'll give you the year for $600 one time, that's a crazy discount.

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Here's the key.

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You're really expensive for whatever it is that you sell.

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They have to pre-pay it.

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They can't lock in the price and then say, can I make a payment plan on your discounted

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services?

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No, it doesn't work that way.

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That's the normal price if that's what you want.

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With any of these things, if you want to make sure that you limit downside, if you are

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worried about too many people taking advantage of it, you can drive even more scarcity by

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limiting quantity.

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For most holiday promotions, I'd recommend doing anyways because one, you can just get your

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immediate shot.

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You don't risk the business and you can take some cash off the table that you can buy

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your own Christmas presents with.

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This one, I've even seen work really effectively as a grand opening strategy, even though we're

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talking about holidays.

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But if you wanted to cash flow the opening of a facility so that you could cover all the

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costs of the place without even having to take capital out of your pocket, you just

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say, hey, for the first 50 people who sign up as patients at my chiropractor clinic, or

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my first 50 patients at my dental clinic, or my first 50, whatever's, you just say, cool.

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If you buy six, I'll give you six and they're like, holy cow, what a deal.

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Now, again, you control the price and you can control the service.

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This is a key part.

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Let's say we want to have this $100 a month as our standard service.

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So what we'll do is we can bump this price, let's say, to $200 a month for this promotion.

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Pause.

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Don't think I'm doing something.

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I think I'll let me explain.

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You then add in one to two things you wouldn't normally do with the main service that

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don't cost you a lot, but is enough to differentiate the offers so that if someone else later comes

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in and is paying $100 a month, this person doesn't get upset because you can clearly

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say, well, that person doesn't get these things that you get and they're like, oh, that's

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the reason why.

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If you're going to use this promotion, if you're already in business, come up with

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the service level that you already have, add one to two things, you can increase the price

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and then do buy six, get six or buy four, get eight and you can drive an insane amount

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of cash and purchases in a short window and then you can limit it by saying no more than

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X can buy.

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And it's one of the strongest promotions that you can run anytime of the year, but specifically

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during the holidays, it crushes.

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So that's our buy X, get why free.

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Now let's talk about the final thing, which is the wrapping paper itself.

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We give four strategies on how you can maximize how much dollars you make are in the holidays.

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Let's see what present number five has.

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So we've got a magic cat and a magic wand.

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Now why is this relevant?

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It's actually more about the wrapping paper itself because every one of the strategies

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that I outlined is basically a gift that you can deliver to your customers and you can

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actually use them year round, but they're especially powerful during the holidays.

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But the key is how you want to wrap it because let's be real, you're not going to change

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your entire business for the holidays to make something sound different, but you can

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make it look different based on how you present it.

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And that's where the magic wrapping paper comes in.

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I call it magic because it's an acronym.

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M is a magnetic reason why, all right, and this is key.

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The reason why we already have solved for us because it's the holidays and everyone expects

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that.

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But the rest of the year, you can still use the same concept.

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The second is the avatar is that you actually want to say who you're targeting.

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You don't want to just say this is available for everyone.

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You want to say it's available for a local market or for somebody of certain age group or

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someone who has a certain interest.

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Many of those things you want to call out, so they're like, oh, this is for me.

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And then they pay attention.

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G is for goal is what's the ultimate outcome you want the person to experience?

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What is the dream that they envision in their minds that you want to say that you can help

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them deliver through the gift that we're wrapping with this wrapping paper?

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The eye is for a time interval, which basically just says when is this person going to get this

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goal or when are they going to experience it?

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And then C is something that I call the container word.

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I don't have a fancy word for this.

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I just know that it has worked and it continues to.

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So this is when you say blueprint accelerator, program, intensive, whatever, right?

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Launch pad.

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Like there's a million different words that you can use to buck it in all of the things

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that you're trying to sell in one bundle.

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If I wanted to do something around stress, right, I might say avatar busy moms.

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So we got our avatar check goal is relaxation holidays is my reason why interval 30 days.

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And then this would be get away.

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So just like that, we can create our busy moms 30 day relaxation get away for the holidays.

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Boom.

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And so if we're a spa, we put this together in the call out for promotion.

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This becomes the naming convention that we use around the first four.

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So this could be our reason why we're doing a loss leader for the diapers or that we are

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giving the gift card or making it available is because we want them to bring their other

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busy mom friends.

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Or if we have a high ticket thing, then we say this is only for this specific type of

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person, which is why only 5% of our audience can buy it because it's the high scarcity

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high ticket program or the reason we're saying you can buy one and get too free is because

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of these things.

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And so this magic wrapper allows you to give the wrapping paper that we're going to put

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on any of the first promotions to get even more people to want to buy yours compared to

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everyone else's.