The video segment discusses a pricing strategy for packages, emphasizing the psychological impact of naming conventions on customer purchasing decisions. The speaker suggests that instead of labeling the lowest-tier package as 'cheap' or 'broke,' it should be named 'minimum package.' This re-framing leverages the inherent assumption that a minimum is something that must be acquired or is a baseline requirement. While not explicitly stating this to the customer, the presenter illustrates how this naming can subtly influence customers to perceive the minimum package as a necessary starting point, potentially increasing close rates. The example provided contrasts 'package A,' 'package B,' and 'package C' with 'ultra transformation thing,' 'middle tier thing,' and 'minimum package,' highlighting how the latter naming convention can make the 'minimum package' seem like a default or essential choice.

Alex Hormozi

If you ever have the ability to name your packages, this name will increase your close rates by a ton. Let's say that you've got package A, package B, and package C.

Instead of having package C be the cheap guy option or the "you're broke" option, instead call it the minimum package. The reason this is so powerful is that minimums assume that you must purchase it.

Now, to be clear, you're not going to say that, but you'd say, "Hey, we have our ultra transformation thing. We have our middle tier thing, which is what a lot of people do, and then we have our minimum package."

"Oh, well, I guess I'll just get the minimum package."

Add A  Minimum  Price Tier 1

If you ever have the ability to name
your packages, this name will increase
your close rates by a ton. Let's say
that you've got package A, package B,
and package C. Instead of having package
C be the cheap guy option or the you're
broke option, instead call it the
minimum package. The reason this is so
powerful is that minimums assume that
you must purchase it. Now, to be clear,
you're not going to say that, but you'd
say, "Hey, we have our ultra
transformation thing. We have our middle
tier thing, which is what a lot of
people do, and then we have our minimum
package." Oh, well, I guess I'll just
get the minimum package.

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Add A Minimum Price Tier 1

Transcription