Oct 14 (edited) • Playbooks - Lifetime Value
#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?”
### Offer Components to Stack
- Name the bundles: “Refresh (2 rooms), Transform (3 rooms).” [$100M Money Models, Page 73]
- Bonus for higher tier: free design upgrade, fixture sourcing, or priority start date.
- Scarcity: “We only take two multi-room slots per month.”
- Risk reversal: “On-time/on-budget promise or we credit $X” (terms apply).
### Implementation
- Add “Multi-Room Bundle” line items to every estimate.
- Highlight the “best value” tier visually.
- Train reps to present the bundle before itemized add-ons.
- Track attach rate and gross margin per job to dial the discount.
Your next step: Add the “Multi-Room Bundle” to your next three bids and use the script above on every walkthrough this week.
"WHY IS IT IMPORTANT TO Train reps to present the bundle before itemized add-ons?"
Because the first thing they see sets the frame. Lead with your bundled package to anchor value and price high—then everything after feels like a deal. Anchored buyers spend more, even when they don’t take the top tier.
- Don’t present line items first—you lose the anchor and invite price picking.
- Don’t fake the premium—some will buy it. Make it real. [$100M Money Models, Page 89]
- Don’t overload tiers—three clear choices max; name them for the outcome. [$100M Money Models, Page 73]
"Help me understand tracking using business math"
Simple remodel example
- A la carte kitchen: Price $48,000. Direct costs $33,000. GP$ = $15,000. GP% = 31%.
- 2-room bundle (kitchen + bath): Price $76,000. Shared costs, so direct costs $51,000. GP$ = $25,000. GP% = 33%.
Now factor close rates:
- If a la carte closes at 40%: 0.40 x $15,000 = $6,000 expected GP per lead.
- If bundle closes at 30%: 0.30 x $25,000 = $7,500 expected GP per lead.
Even with a lower close rate, the bundle wins because it creates more GP$ per lead. That’s the math you follow. [$100M Playbook: Lifetime Value, Page 12] [$100M Playbook: Pricing, Page 21]
"What's an acceptable close rate rule?
You don’t need the highest close rate—you need the highest profit. Set a break-even close rate for the higher-priced option: what close rate makes its expected GP equal to the lower-priced option? If you’re above that, keep it. Test prices quarterly; pricing moves profit more than almost anything. [$100M Playbook: Lifetime Value, Page 12]
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#5 Selling More (Increase Quantity)
