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Break Even Close Rate
Baseline Price For Bathrooms - Current price: $16,000 - Cost: $9,000 - Gross profit (GP): $7,000 - Close rate: 25% - EV per quote (GP × close): $1,750 We optimize price by maximizing conversion rate × lifetime gross profit; set a new price, calculate break-even conversion, track it; if above break-even, it’s a winner. [$100M Playbook: Lifetime Value, Page 12] Break-even close rate = $1,750 ÷ new GP - $17,500 price (GP $8,500): break-even close ≥ 20.6% - $18,900 price (GP $9,900): break-even close ≥ 17.7% - $19,900 price (GP $10,900): break-even close ≥ 16.1% - $21,000 price (GP $12,000): break-even close ≥ 14.6% If your close holds near 25%, each step is more money per quote. If it dips, you’re still fine until it crosses the break-even for that price. Keep raising until the extra cash from higher GP no longer offsets fewer wins. [$100M Money Models, Page 154] How to run it (simple and fast) 1. Next 10 quotes at $18,900 with identical scope. Track close rate. - Goal: ≥ 17.7% (break-even). If you beat it, you’re making more per quote. [$100M Playbook: Lifetime Value, Page 12] 2. If you clear it, move the next 10 quotes to $19,900. Repeat. - Keep nudging price ~20% every ~10 sales until conversion × GP falls below the prior level. [$100M Playbook: Lifetime Value, Page 12] 3. Stomach more no’s. That’s the price of higher profit. Don’t flinch back to cheap just to feel good. [$100M Playbook: Pricing, Page 22] 4. Add visible value to support the bump (e.g., clearer timeline, daily updates, cleaner jobsite standards). Bigger price → bigger perceived value. [$100M Playbook: Pricing, Page 23] My call Start at $18,900 now. If your close stays above 17.7%, lock it and test $19,900 next. Keep going until the math says stop. Winners decide, test, and raise until they actually make less. [$100M Money Models, Page 154] Your next step: price your next 10 bathroom bids at $18,900 and track close rate vs 17.7%—send me the results and I’ll tell you whether to bump to $19,900 or hold.
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#6 Sell Better (Increase Quality)
"How can I make chapter 6 applicable to my remodel business?" ## Strategy: Premium Tiered Remodel Offers (Good-Better-Best) You’re selling the same outcome—a beautiful kitchen/bath. Charge more by shrinking time, effort, and uncertainty. That’s what premium buyers pay for. When dream outcomes are equal, the difference in perceived value is speed, certainty, and ease [$100M Offers, Page 64]. And a minority will happily pay 5–10x more if you build a tier for them [$100M Offers, Page 102; $100M Playbook: Pricing, Page 23]. ## Make It Remodel-Specific Build three clear tiers and pitch the premium first (use an ultra anchor to make the main offer feel like a deal) [$100M Playbook: Pricing, Page 54; $100M Playbook: Pricing, Page 23]. 1) Standard (Good) - Response: 24–48 hrs - Time windows: Weekdays, 9–5 - Start date: Normal queue - Speed of delivery: Standard crew, single shift - Service ratio: Shared project manager (PM manages 4–6 jobs) - Communication: Weekly email + milestone calls - Provider: Mixed crew, supervised by PM - Materials: Builder-grade package; upgrades extra - Site care: Basic dust control, end-of-week cleans - Changes: Change orders priced in 3–5 business days - Cancellations: Reschedule fee; standard contract terms - Location: Core service area only - Warranty: 1 year labor 2) Priority (Better) - Response: Under 2 hrs - Time windows: Expanded (Mon–Sat, early/late slots) - Start date: Priority scheduling (cut lead time meaningfully) - Speed of delivery: Senior lead + larger crew to compress duration - Service ratio: Dedicated PM (1:3 jobs) - Communication: Text thread + weekly video walkthrough - Provider: Senior installers on critical trades - Materials: Mid/high-grade package (e.g., quartz, soft-close, premium fixtures) pre-included - Site care: Full dust containment (zip walls, air scrubbers) + biweekly deep cleans - Changes: 24-hour pricing turnaround - Cancellations: Free reschedule with 72-hr notice - Location: Extended service radius
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#5 Selling More (Increase Quantity)
This is taking the Hormozi Playbook for LTV as it pertains to the bathroom & kitchen remodel business. ## Quantity Upsell: “Multi-Room Bundle” (Remodeler Example) Add a second (or third) room to the scope at a better unit rate because mobilization, permits, and project management are already sunk. You sell one decision, capture multiple rooms, and compress fulfillment. Bundle it. Name it. Make it the obvious choice. [$100M Money Models, Page 73] [$100M Money Models, Page 96] [$100M Money Models, Page 151] ### The Offer (example numbers) - Base: Kitchen Remodel — $48,000 all-in. - Quantity Upsell: - 2-Room Bundle (Kitchen + 1 Bath): “Add a full bath while we’re here” — minus second mobilization, shared demo, shared permit. Net: +$28,000 instead of $32,000. You save them $4,000 and keep margins because overhead is shared. - 3-Room Bundle (Kitchen + 2 Baths): Add the second bath at +$24,000. Bonus: free design upgrade + priority schedule. - Framing: “One decision. One crew. One permit. Faster timeline. Lower per-room cost.” Why it works: - You bundle and name packages so it’s one yes, not three. People buy the “package” more than the parts. [$100M Money Models, Page 73] - It’s a Menu Upsell: tiers with escalating value and clear “best value” highlight. [$100M Money Models, Page 151] - Upsells move more cash, faster, from the same client. [$100M Money Models, Page 96] ### Pricing Logic (keep margins) - Keep materials at normal margin. - Discount only duplicated overhead (mobilization, permits, dumpster, project management hours). - Preserve labor margin by stacking shared tasks (demo, plumbing access, electrical rough-in). - Include a small “while-we’re-open” efficiency credit (e.g., $1,500–$4,000) to make the math obvious without killing profit. ### Sales Script > “While we’ve got the crew here and the walls open, most smart homeowners add the guest bath now. You avoid a second mobilization, second permit, and months of disruption later. Normally that bath is ~$32k. As part of the 2-Room Bundle, it’s $28k. One decision. One timeline. Better per-room price. Want me to show you the 2- and 3-room bundles?”
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Questions to ask Hormozi AI
## The best questions to scale your remodel business (by fixing pricing first) You did $450k and kept $4k. That’s a rounding error, not profit. Leads aren’t your bottleneck—pricing and offer are. Raising price increases gross profit and often lowers delivery costs because you serve fewer, better clients [$100M Playbook: Pricing, Page 22]. Start here. ### Offer and pricing (make more per job) - What’s your true gross margin per job (revenue minus subs/materials only)? Target 45–55% on remodels. - What’s the exact price increase (minimum +20%) you’ll test on the next 10 bids—no exceptions? [$100M Playbook: Lifetime Value, Page 11] - Which high-value deliverables can you stack to justify that price? (e.g., permit handling, 3D renders, dust control, vendor-priority scheduling) [$100M Offers, Page 116] - What conditional guarantee will you offer to reduce risk? (e.g., “On-time, on-budget or we refund the final 20%”—voided by scope changes) - What payment plan downsell will you use when you hear “too expensive”? (Translation: “too much up front”) Example: 30% deposit + progress draws. Change terms, not price [$100M Money Models, Page 102]; [$100M Offers, Page 50] ### Scope control (protect margin so the guarantee is safe) - What are your written change-order rules and minimums? (No work without signed CO + payment) - What are the timeline buffers for permits/inspections/material delays baked into your contracts? - What exactly defines “complete” to trigger the final payment? Remove ambiguity up front. ### Segmentation and targeting (sell premium to premium) - Who are your A+ buyers by ZIP, home value, and project type (kitchen > bath > flooring)? Different avatars tolerate different prices [$100M Playbook: Pricing, Page 23] - What jobs will you say “no” to because they drag margin or timelines? Simple scales, fancy fails. ### Proof and preframe (justify the raise) - What proof will you show pre-call? Before/afters, client walkthroughs, timeline certainty, budget accuracy.
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Google Ads Early Optimization goal
Plan is to start with $500 To train the machine. Scaling only after it sprints, Our local marketing company recommended we start with small budget in order to allow time for Google to learn about our business. They say people try to scale before Google understands who to send. That’s how you burn cash. We’re doing the opposite: buy signal first, then buy volume. Phase 1: The $500 Optimization Sprint (Buy Data, Not Vanity) Objective: Teach Google who your buyer is (booked design consults from qualified homeowners), and harden every link in the chain. What’s getting optimized in this sprint: - Tracking & Signals - Primary conversion = booked in‑home design consult (not just form submits). Track calls, forms, and bookings separately. Kill duplicates. Feed back closed deals via offline conversion/import with values so the algo learns high‑value leads. - Only scale once tracking is clean. No clean tracking = no scale. - Targeting & Intent - Keywords: themes around “kitchen remodeler near me,” “bathroom renovation contractor,” “kitchen design and build.” Start tight, expand only winners. Prune search terms daily; build a real negative list. - Geo: restrict to your best ZIPs (higher home values). Ad schedule: show when humans answer phones. - Ads (Hooks, Offers, Proof) - Hooks do the heavy lifting. Write 50 headline hooks that hit levels of awareness (problem → product → most aware). Examples: “See Your New Kitchen Before We Swing A Hammer (Free 3D Render),” “On‑Time, On‑Budget Guarantee,” “0% Promo Financing Available.” Spend 80% of creative time on hooks. I added this here as our marketing team didn't really spend much time here, they were only focused on adding general keywords, I being concerned about hooks suggested they put a little more effort into them - Build 3–5 “meats” (testimonial, before/after, explainer, founder cam). Mix and match to find winners fast. I have 3 people lined up to do video testimonials. - Extensions: sitelinks (Kitchens, Bathrooms, Financing, Gallery), callouts (Licensed. Insured. 100+ 5‑Stars.), structured snippets (Services: Design, Demo, Install), image assets, call asset.
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