How Luke Templin Uses Alex Hormozi’s $100M Models Strategy in CAS Proposals
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Speaker 1:I've been selling casts for a while now and my proposals have worked well enough. However, I've recently been rethinking how I structure pricing conversations. After digging into Alex Hermosy's a $100,000,000 offers, I saw some ideas that struck me as more innovative ways to handle proposals. Feature down sells, anchoring with premium tiers differently, and tying incentives to client behavior. I haven't implemented these yet but I plan to start testing them because I believe they will make the sales process more effective and give me more control.
Speaker 1:Recently, had a prospect push back on my full assessment fee of 5,500. They wanted me to cut the price. Negotiating on price sets the wrong tone for me. It signals that my value is up for debate and that's not how I wanna start a cast relationship. Still, that experience made me think about how to handle similar situations in the future.
Speaker 1:One thing Alex talks about in his book is the feature downsell. His approach is simple, remove features without lowering the price. For example, in my full assessment, I offer money back guarantee. So I could have stripped out that money back guarantee and maybe a few other items. Rather than lower my price, offer that feature downsell for 3,000 versus 5,500.
Speaker 1:I haven't tried this yet, but I think I wanna have it ready for the next time because it gives the client a choice without me compromising on my pricing. The next thing I'm going to experiment is how I present my tiers. So in the past, I would get to the end of my proposal, I would show the three options, bronze, silver, gold, all in one slide and with all the prices at the bottom. And what usually happens in that is the client typically zeros on on the lowest number and I can usually convince them on the middle tier. So Alex in the book talks about the psychology of anchoring, which is what tiers are doing, but the way I was presenting it, I wasn't doing myself any favor.
Speaker 1:So the story Alex tells in the book is he goes into a suit shop. They put a suit on him. He looks at the price tag. It's $16,000. The owner of the suit shop sees him essentially blush when he looks at the suit so the owner instantly knows by his body language that he can't afford it.
Speaker 1:So they move on, put him in $2,000 suit because Alex had already been anchored with that 16,000. The $2,000 suit looks way more reasonable to him although he walked into that store with a budget of like $500. But if they would have put him in that $2,000 suit before waiting on the reaction from the $16,000 suit and he didn't have a negative reaction, then they potentially would have left money on the table by downgrading. I was taught in the top 100 firm is no naked proposal. So I'm always I say always, but there are times that I'm guilty of it too, presenting that proposal either face to face in person or on a digital call with cameras on because I wanna be able to see that reaction.
Speaker 1:And so going forward, the way I'm gonna lay out my tiers is I'm gonna present my highest tier first. Before moving on to the next tier, I am simply going to ask the prospect, do you have any questions or concerns and pause? And they may not, but a lot of times you'll get to see kind of that body language and from there you can kinda read whether or not you should move in to the other tier. The other thing Alex talks about is actually using the tiers as a way to kind of build trust. And so the example he gives, and and I'm doing this with a current prospect and I've done it with other prospects before, is essentially you put put together this this package and you say, I can't remember the exact words Alex uses in the book, but essentially this tier is not for you.
Speaker 1:So the prospect I have most recently, they were in process of merging with another company. There was a letter of intent on the table. So the very first package I put forth is essentially being their deal advisor. Helping them with the LOI and the conversation to that prospect is, look, you had a deal on the table. I know it's gone south.
Speaker 1:This this isn't a package you need right now, it's for if another deal comes on table, I just wanna make you aware of it. So I'm building trust by essentially telling them they don't need it but I'm also anchoring them because that price has success fee built into it. So I'm showing them that before moving on to the tier I think they need and I think this will help a lot because essentially I'm gonna get feedback on each individual tier as I move down where historically, wouldn't necessarily get feedback on the different tiers other than, you know, if they pick the highest package and they pick it pretty quickly, I knew I probably left some money on the table. So this will allow me to be able to read the body language in the kick ass community, and I'll put a link in the show notes. I walk through essentially how I'm structuring these proposals and give an actual real life client proposal template that you can rip off and duplicate, what I call R and D.
Speaker 1:So if you wanna check that out, check the the show notes. The other thing that I'm considering doing, and I won't do this for all clients, this one will be case by case. And again, that the video I recorded in the kick ass community, I show how I do this because that particular prospect is the one that that made me think about it. Hormozi essentially using his initial offer. So in my case, the assessment to incentivize long term customer success because what what he noticed was he'd put together these offers.
Speaker 1:Alex was in the gym business, so these people would come in. He have a ton of new customers in the gym, but he wouldn't convert a lot of them. So he essentially every month needed to get a bunch of new customers rather than having recurring revenue. And one of his friends essentially said, hey, instead of applying that offer, that credit back right up front, you need to space it over a time period. And by doing that, he ended up converting a lot of the customers from the initial offer into recurring customers and so that that's what I'm thinking of doing with my assessment is it's going to get applied over a certain time period.
Speaker 1:And the first prospect I'm trying this with essentially if they pick my top tier that assessment fee gets applied over three months. If they pick the middle tier that credit gets applied over six months and then they pick the bottom tier, that credit gets applied over twelve months. So it's incentivizing them to one pick the bigger package, but two it's also incentivizing them to stay with me over a longer period of time. And again, it's gonna be case by case. The first prospect I used it with essentially part of the assessment process was build out an org chart.
Speaker 1:During that process we identified someone that can fill that spot right away of what I was kind of helping getting started. So my thought on that prospect is prospect probably wouldn't continue. They might, they might have done the lower package without the credit. But my thought is this was a way to incentivize them to move on from the assessment because it was a very particular case and I enjoy working with the client and I think they have a lot of interesting things going on. So that is something else I'm thinking about is using my assessment essentially as a way to convert into recurring.
Speaker 1:So that's how I'm thinking about utilizing what Alex Hermosy talks about in his book within CAS sales. It can be applicable to accounting sales as well. So again, if you wanna see how I'm exactly structuring this in my proposal, recorded that sixteen minute video in the kick ass community, walks you through the actual tiered proposal I've built and explains how I plan to present it and it also gives you the template that I use for that. An offer that I'm giving to listeners and it's essentially Hermozy's win your money back guarantee. So join the kick ass community for thirty days at $60.
Speaker 1:As long as you post an introduction and interact one time, whether it's intend one of our live events, you created a post, or you comment on someone else's post at the end of thirty days. You decide to stay, I will credit you two months for free, a $120 in value. And if you decide the community is not for you, I will refund your $60. So either way, you will walk away with the CAST proposal template that you can put to work immediately. Thank you for listening.
