Dec '24 • General discussion
Day 1 Selling Rizz: The Hidden Power of Margins
Let's talk about a game-changing strategy that can double your business efficiency without doubling your effort. What if I told you that improving your margins could be the key to creating irresistible demand for your offers?
Words I like: "The price of ambition is hard work, but the cost of settling is your potential."
The Secret to Margins That Multiply Demand
Most people think improving margins by 10% is just a small win. But here’s the truth:
- Moving from 80% to 90% margins isn’t a 10% improvement—it’s a 100% efficiency gain.
Here’s why:
➡️At 80% margins, you spend $20 to make $100.
➡️At 90% margins, you spend $10 to make $100. That means your cost per sale is cut in half.
Why Margins Drive Demand
Efficient businesses reinvest more into growth, marketing, and better customer experiences. This creates a ripple effect:
1️⃣Your offer becomes more polished and desirable.
2️⃣You have more resources to amplify your marketing, attracting more buyers.
3️⃣Customers perceive the value and demand skyrockets.
Example in Action
Two businesses making $1M in revenue:
✴️Business A (80% margins): $200k in costs, $800k gross profit.
✴️Business B (90% margins): $100k in costs, $900k gross profit.
That’s an extra $100k for Business B to invest in scaling or pocket as profit. Over time, this efficiency compounds.
How to Boost Margins
If raising prices feels out of reach, focus on cutting costs.
Here’s how:
✅Renegotiate vendor terms or buy in bulk.
✅Vertically integrate—own your supply chain.
✅Streamline delivery by increasing your client-to-delivery ratio.
✅Use tech and automation to enhance team efficiency.
✅Offshore talent for tasks that can be done remotely.
✅Shift from recurring services to on-demand offers where possible.
That's DAY 1 of 'Selling Rizz' as promised
PS - Today, I did 1 0n 1 consulting for a business coach. This marks the start of my goal.
1/10 CALLS DONE💪... Let's crush the remaining 9 consulting spots before the series ends 🔥
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Day 1 Selling Rizz: The Hidden Power of Margins
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