Alex Hormozi
Alex Hormozi

@AlexHormozi

11 Tweets 11 reads Jul 05, 2022
Six years ago I was selling supplements at my gym and I ran out of inventory on a few key products.
I still had about 20 more consults left that day. And - I still needed to make money.
Result: I ended up selling more than I did when I was fully stocked & learned key lesson…
Here’s what happened:
After running out, people kept asking about products we had sold out of.
Their friends had bought them.
They wanted them too. But it would take too long to restock. So I couldn’t provide them. I tried to unsell them on why they needed them.
Awkward.
After a few less than ideal exchanges, I switched up my approach.
Now, before I got into explaining the products on our menu, I changed one thing…
This time: I told them not to buy the products (we were out of) from us.
I said ā€œhey, before we get going. You can probably pick up an equivalent product from Costco for about half the price we’re selling it. It won’t be as good. But it’ll still get the job done. So you can go ahead and cross that item offā€
And…
ā€œā€¦This one you also don’t need given your current level. It’ll be important later but you can just cross that off the list. So that should save you some money. Cross that off too.ā€
Then
ā€œā€¦Ok, now I need you to get 1 of these, here’s how you’re gonna take it…2 of these…etcā€
And here’s what happened…
I ended up selling MORE overall.
My close rates went up to nearly 100%.
I sold more telling them what they didn’t need to buy.
THEN telling them what they needed.
It was wild.
I sold more than when I hadn’t run out.
I trained my teams on this ā€œmethodā€ and we started calling the products we wouldn’t sell: ā€œsacrificial lambsā€
Basically products that you purposely sacrifice to sell more of others.
Using this method, I sold more of my other products and more overall.
I eventually stopped carrying the ā€˜sacrificial’ inventory altogether.
But they always remained on the menu as a way for us to gain trust.
And that was because people saw us as caring for two things:
1) Saving them money by recommending other stores that carried products for less
2) Not pushing things they weren’t ready for
After all, you SHOULD be selling from a place of their best interest and their trust.
And it gave us more clients, who bought the things we really did want them to take, all while being more trusting of our intentions.
I stumbled into this method by accident.
Use it for good.
PS - And if you feel weird about ā€œunsellingā€ nonexistent inventory to sell more other SKUs, feel free to carry stuff that you never sell.
Telling people not to buy ended up resulting in more sales overall.
It was an interesting study in human psychology.
I hope it serves you.

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