- The video discusses three holiday money-making tactics for businesses.
- The first tactic is using a "loss leader" strategy, where a well-known product is sold at a lower price to attract customers and make profits from ancillary purchases.
- The second tactic is using gift cards as a promotional strategy, offering them at a significant discount to attract new customers and generate leads.
- The third tactic is offering high-ticket services or products at a much higher price to a limited percentage of customers, creating scarcity and driving sales.
- The video emphasizes the importance of having promotions during the holiday season when businesses tend to make more money.

- The video discusses three strategies for maximizing revenue during the holidays
- The first strategy is to create hype and scarcity around a high-ticket item, selling a small percentage of customers a more expensive product
- The second strategy is to offer a free item with a prepay purchase, making the free item highly valuable to drive purchases
- The third strategy is to use a "magic wrapping paper" approach, which involves creating a compelling reason why, targeting a specific audience, highlighting the ultimate goal, specifying a time interval, and using a container word to bundle the offer
- These strategies can be used year-round but are especially effective during the holidays.

My new book $100M Leads is now LIVE. Grab your copy here 👇 
https://shop.acquisition.com/

---
WE'RE BUYING! $1M-10M EBITDA Founders - We invest and help you scale faster. To find out more, apply here: https://acquisition.com 

We invest in everything from YouTube channels to local businesses to IT services. 

For everyone else, I make my money buying and growing businesses. I make this free content with the hopes you use it to grow your business enough to partner with us.

---

The holidays are upon us and most businesses make more money in the last month of the year than they do any other month If you own a business or you work for a business, this is your opportunity to capitalize and every 1 of these presents I'm going to open up and give you 1 holiday money-making tactic that you can take to the bank.

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

Now what do these have to do with making money?

Inside of diapers and the baby bottles is actually 1 of the strongest concepts for holiday marketing Which is something called a loss leader.

A loss leader is basically where you sell a very well understood product and you sell it for less than the market Understands the prices for So you sell it at a loss.

Now, why would it be called a loss leader?

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

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

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

Sell the thing that most of them understand what the price is for that almost all customers will buy so that you can bring them in the door.

Because if you have the cheapest diapers they're gonna come buy diapers from you.

Now what they might not know the price is for are all the ancillary purchases they might make once they come into your store.

Whether that's a digital store or a physical brick-and-mortar store.

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

And so trying to make quarter or 2 quarters more in the diapers compared to making dollars on the baby bottles is where you can make up what you lost here, but you make it up in significantly more profit and total units sold.

How do you use this for a Black Friday or a holiday promotion?

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

So if I have my services and so there's different components to my services, Like for example, and I use fitness a lot, you have access to a facility.

You also have accountability, which is another component.

The actual workouts or service with a trainer.

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

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

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

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

But if you take out 1 of these pieces, let's say this one's accountability I guess, and then I say hey I'm gonna make this 90% off.

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

And so what happens is you can promote this 90% off thing, which is what a Black Friday or huge holiday promo, big bash would be like.

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

You probably also want some help with your food.

You probably want access to the facility.

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

And So that's the big theory or strategy behind Lostleet.

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

This was the strategy they actually used to take over the baby market, was they sold them cheaper than everyone else did, but they made all the profit up on the other ancillary upsells.

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

Look at what you have, put it into an itemized list of all the things you could potentially market or advertise and then you peel off 1 of them, I call it splintering your offer, and then you make an insane discount around 1 of those pieces.

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

And the reason it's so important in general to have a promotion going on during the holidays is the thing I said at the very beginning.

Most businesses make more money in the last month of the year and that's for 2 reasons.

1, because they advertise more and 2, because people want to spend more.

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

All right, so that's it with our loss leaders.

What do gift cards have to do with Black Friday and holiday promotions.

First off, gift cards are 1 of the most lucrative things that you can sell in general.

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

So when grandma gets all the kids Best Buy gift cards, the percentage of people who actually spend the money is very low.

What it essentially is is a loan that a customer gives to a business and the business just keeps the cash on their balance sheet, can earn interest on it while they wait to redeem for it, and after a certain point of expiration they can just keep all of the money without even providing goods.

People literally give you money for nothing.

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

This is 1 that I used all the time my brick-and-mortar locations.

You offer $200 gift cards to your services 1 purchase worth of services So if you give out massages or you have a membership to a facility or you do cleanings It doesn't really matter what it is.

But 1 units worth you do that dollar amount as a gift card.

That's number 1 1 full unit in In dollar amounts That's step 1.

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

And you say, hey, I'm selling this gift card.

Step 3 is you say, this is a $200 gift card, but I'm selling it for 90% off or 80% off whatever you want.

I'm gonna say 90 because I'm going I'm going big here.

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

Everyone else is doing Black Friday promos and we need to break through the noise and this is a crazy good promotion.

So this is the ultimate stocking stuffer.

You tell your entire client base they can buy 2 of these gifts for other people and they get the credit for it being $200 because it's a gift card.

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

The fact that grandma went to Alex's gym and she only paid 20 for it.

You don't know that, nor do you really care, but this is the genius part of this strategy.

Number 1, this is an insane promotion, so you're gonna get a lot of attention and a lot of people are gonna want to buy it.

Number 2, is that you're actually gonna get paid money for selling these gift cards.

But here's the secret, all of this is new customers.

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

And you would probably give the services away for free anyways to get a customer, but rather than marketing and spending money to get someone in the door to try your stuff out, you're gonna get paid to do it.

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

And referrals buy in higher rates, stay in higher rates, and because they're coming from somebody else, they can usually help assist them in kind of onboarding and figuring out the app if you need to check in for a facility or whatever it is that you sell.

You get the assist from the friends, you can double a client base because you can get every single person to bring not 1 but 2 and the reason we limited 2 per customer is because it increases the perceived value.

You could sell 2 units and make it 70% off.

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

You're getting paid to get new customers and the highest quality source And so 1 of the important details to do with this is that when you make the sale, ask them who they're going to give it to and get the contact information.

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

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

And because you'll have the contact information, you can do a three-way intro with the customer who bought it and the prospect, but what else can you do with this?

Well, what if everybody who comes in, you have a sales consult with, and you try and sell them all a $1,000 thing?

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

So big picture, 1 full unit, 200, $400, whatever 1 unit or whatever it is you sell is.

Limit it in some way, 2, 3 people per person.

Make it 90% off, 80% off so you get paid for it.

Limit it to referrals of friends, so they're not gonna use it on themselves, so they bring you more customers.

Get the three-way introduction so you get the leads, and then when you bring them in, actually sit down with them for a sale.

And this is 1 of those great things that you can use to immediately attract tons of new customers at a profit during the holidays when it's hard to break through.

All right, now we talk about, ooh, nice and heavy.

I wonder, wonder, wonder what's in a Wonder Ball.

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

Like 10 times or 50 times as expensive as whatever I normally charge.

This works especially well with services, which is what I'm focusing on.

You could probably think of a version of this for physical products.

If my normal client load, let's say at my business is I have 100 clients and I can't manage more than that, then you say, okay, I'm going to limit this promotion to 5% of my customer base.

If you're a hair salon person and you have this many customers or you're a chiropractor with this many customers, it doesn't really matter.

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

You say, hey, I'm doing this personal program that you're gonna get more service.

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

So you limit it to 5 to 10% of your customers.

I'd recommend 5 if it's your first time because you want to sell out.

And then next year you can bump it to 6%, 7%.

Let's say that you sell normally a $200 thing.

Well, then you would sell something that's between $2,000 and $20,000, which sounds like a huge price gap, and it is.

But the thing is, is that most customers are fractal.

And so what that means is that it's 80-20.

20% of customers will spend 5 times more than 80%.

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

So you have the remaining 20 that are the five-time spenders and you do another 80-20 on that.

That's the magic between 5% because those customers are 2 standard deviations above the rest of the group.

And we capitalize on that by making a product or a service package that people like that want to buy because it's scarce.

Let's say you had a hundred customers and you sell 5 of them a $5,000 package, you make $25,000.

And if you're used to making $10,000 a month or $20,000 a month from your remaining customer base You can literally double your revenue that month only by selling 5% of your customers a much more expensive thing the key to making this work you build lots of hype around it before the holidays You advertise the crap out of how scarce it is and you talk about the minute it's gonna go live and you prepare people you say hey have your credit cards ready be Ready for it because I'm gonna drop it and they're gonna sell it immediately And then when you do the moment you get your first sale Let everyone know 4 left 3 left 2 left 1 left sold out every time you do that you'll drive even more FOMO and more scarcity and more purchases.

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

Not only is there 1 shirt, there's 2 shirts in this package.

And how are we gonna do 1 shirt to get someone to buy 2 shirts, I'll tell you.

So this strategy is called free with prepay.

We're talking holiday season, we're talking Black Friday, we're talking special occasion.

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

If you're giving away your core service, then what you can do is think about what's the highest margin service I have and package that in a way that you can have people prepay to get X amount free if it's services or buy X and get Y free.

And I'll tell you the first place I learned this.

So there's a place in Nashville I saw and I came back 10 years later, and it was still there and it had expanded So I was like oh they must be doing well and their entire window pane said buy 1 get 2 free And it was pairs of boots, and I was like that's wild So I went inside the store and I was like, huh, I wonder how this works.

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

So all they did was they tripled the price for 1 pair and said, buy 1, get 2 free.

And they capitalized on the fact that for them specifically, there was bachelorette parties and all the girls come in it's like well I'll buy 1 and then my friends will get 2 free or whatever and ideally if you really want this thing to crush you actually give more away free than you charge for so it's buy 1 get 2 free It's not even just buy 1 t-shirt, get a second t-shirt free.

But the thing is that for most products and services, you can increase the price of the 1.

And so if you want to have a level of service that you haven't offered before, that you want to do specific for the holidays, or a product you want to come out with, this is the perfect time to do it because no 1 has any comparison for the pricing.

Let's say normally I would sell these shirts for 5 bucks a pop.

I might say buy 1 shirt for 10 dollars and get 2 free.

Now What ended up happening is that I got $10 and I sold 3 shirts, which is really just like a 30% discount.

But the perception of how much more compelling get 1 to get more free than what you paid for is the thing that drives the buying behavior.

So I just gave you a few different physical products examples but this is actually super deadly with services, but it can be abused.

And then some people can become dependent on this.

There are businesses that I have looked at in order to invest in the decided not to invest because they were too dependent on this because it's such a strong strategy.

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

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

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

But if you say, hey, I'll give you the year for $600 1 time, that's a crazy discount.

If you're really expensive for whatever it is that you sell, they have to prepay it.

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

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

With any of these things, if you want to make sure that you limit downside, if you are worried about too many people quote, taking advantage of it, you can drive even more scarcity by limiting quantity.

For most holiday promotions, I'd recommend doing anyways, because 1, you can just get your immediate shot, you don't risk the business, and you can take some cash off the table that you can buy your own Christmas presents with.

This 1 I've even seen work really effectively as a grand opening strategy, even though we're talking about holidays but if you wanted to cash flow the opening of a facility so that you could cover all the costs of the place without even having to take capital out of your pocket, you just say hey for the first 50 people who sign up as patients at my chiropractor clinic or my first 50 patients at my dental clinic or my first 50 whatever's, you just say, cool, if you buy 6, I'll give you 6.

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

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

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

You then add in 1 to 2 things you wouldn't normally do with the main service that don't cost you a lot, but is enough to differentiate the offers.

So that if someone else later comes in and is paying $100 a month, this person doesn't get upset because you can clearly say, well, that person doesn't get these things that you get.

And they're like, oh, that's the reason why.

And so if you're going to use this promotion, if you're already in business, come up with a service level that you already have, add 1 to 2 things, you can increase the price and then do buy 6 get 6 or buy 4 get 8 and you can drive an insane amount of cash and purchases in a short window and then you can limit it by saying no more than X can buy and it's 1 of the strongest promotions that you run anytime of the year but specifically during the holidays it crushes.

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

So we give 4 strategies on how you can maximize how much dollars you make during the holidays.

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

It's actually more about the wrapping paper itself because every 1 of the strategies that I outlined is basically a gift that you can deliver to your customers.

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

Because let's be real, you're not going to change your entire business for the holidays to make something sound different, but you can make it look different based on how you present it.

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

The reason why we already have solved for us because it's the holidays.

All right, the big reason why is it's Black Friday and everyone expects that.

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

Is that you actually want to say who you're targeting.

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

You want to say it's available for a local market or somebody of a certain age group or someone who has a certain interest.

Any of those things you want to call out so they're like, oh this is for me, and then they pay attention.

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

What is the dream that they envision in their minds that you want to say that you can help them deliver through the gift that we're wrapping with this wrapping paper?

The I is for a time interval, which basically just says, when is this person going to get this goal or when are they going to experience it?

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

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

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

Like, there's a million different words that you can use to bucket in all of the things that you're trying to sell in 1 bundle.

If I wanted to do something around stress, right?

So just like that, we can create our busy mom's 30 day relaxation getaway for the holidays.

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

This becomes the naming convention that we use around the first 4.

So this could be our reason why we're doing a loss leader for the diapers, or that we are giving the gift card or making it available is because we want them to bring their other busy mom friends.

Or if we have a high ticket thing, then we say this is only for this specific type of person, which is why only 5% of our audience can buy it, because it's the high scarcity, high ticket program.

Or the reason we're saying you can buy 1 and get 2 free is because of these things.

And so this magic wrapper allows you to give the wrapping paper that we're going to put on any of the first promotions to get even more people to want to buy yours compared to everyone else's.

And that's all the money making magic you need during the holidays.

See all Alex Hormozi transcripts on Youtube

How to get rich this Black Friday