The Mathematics of Business, Explained | Ep 932

I've been in business for 14 years. Acquisition.com, our portfolio does over $250 million per year. Nine weeks ago, just at $106 million in sales alone, making the Guinness fastest selling nonfiction book of all time. We doubled the formal record. And so that is just my credibility for what I'm about to share with you, which is 12 of the most important

kind of rules of thumb that I've learned or picked up along the way in my business career that you can use to analyze your business to know where you are versus where you could or should be, whether this is a problem to solve or something that you just need to manage and pay attention to. And so this will help you allocate where you're spending your time within the business with a clear yes, no answer of am I doing a good job or not? So let's dive here the first one. The first one is close rates versus pricing. So if you sell people stuff, now this would be specifically for people who sell

with a salesperson in person or a salesman online, so on the phones or Zoom if that's how you fancy it. I want to kind of give you kind of a tier ladder list to think through in terms of rules of thumb. And so the reason that there's a relationship between obviously price and close rate is that if you lower the price, we know our old supply-demand curves, if you lower price, demand goes up, etc. The idea is if you're closing at 80% or more in whatever you sell, so four out of five people you talk to buy your thing. you are typically underpriced by 3 to 4x.

We already have this episode, so unlocking it is cheap and permanent: the full transcript (62 minutes, 13,131 words), segment and word-level timestamps, and .txt, .srt, .vtt and word-level JSON downloads, as many times as you like, forever.

No account needed, we create one from your checkout email. With credits it is 1 credit; packs start at 10 episodes for $5, and monthly plans are cheaper still.