WOW Mentor
Offer & Pricing
A price list is a strategy document. From grand-slam offers to SaaS pricing experiments — companies that changed growth by changing how they charge.
1 chapters · ~ 7 min read · checklist 5
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PricingChapter 1 · Alex Hormozi · Acquisition.com
Hormozi's Grand Slam Offer: making your offer incomparable
The offer equation Alex Hormozi built inside gym businesses — dream outcome, perceived likelihood, time delay, effort. We follow the four levers with real numbers and show how they pull you out of price competition.
Today we're taking apart the offer equation Alex Hormozi built inside gym businesses. It starts in a very ordinary place: same neighbourhood, same service, and a price that drifts down every month. Cutting price gets you through this month. Next month the competitor cuts deeper. That game has a known ending. The question Hormozi asks is different: why are we standing somewhere we can be compared at all?
His value equation has four terms — dream outcome, perceived likelihood, time delay, and effort and sacrifice. The first two are the numerator, the last two the denominator. Most companies only ever touch the numerator. But the resistance a buyer actually feels usually sits in the denominator: how long until this works, and what do I have to endure? That's the heart of the first chapter. Price competition looks like a numerator fight; it's really a neglected denominator.
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Sections
- 0:00The commodity trap
- 7:00The four terms
- 14:00Three guarantee structures
- 21:00What to do Monday
Action checklist
- Value equation: (dream outcome × perceived likelihood) ÷ (time delay × effort and sacrifice)
- Shrink the denominator instead of the price — speed and convenience are the most underused levers