From: alexhormozi
Gaining practical experience through a high volume of low-ticket transactions is presented as a powerful method for improving sales skills and preparing for high ticket sales [00:07:06]. This approach provides numerous repetitions that teach more about the skill of selling and dealing with people than any course [00:06:56].
Benefits of High Volume, Low Ticket Sales
- Rapid Skill Development Working at businesses that handle many daily low-ticket sales, such as car washes, massage, nails, or hair services, allows salespeople to get “rep after rep after rep” [00:06:41]. This intensive practice equips individuals for any future sales endeavors [00:07:03].
- Preparation for High-Ticket Sales Experience with numerous low-ticket transactions can make selling more expensive, high ticket items feel like “a breeze” [00:07:10].
Key Sales Tactics Developed
Through this process, salespeople can master crucial sales techniques and approaches:
Building Trust with “Ghost Products”
One of the most powerful sales tactics is the use of “ghost products,” also known as “sacrificial lambs” [00:00:00] [00:02:19]. This strategy involves recommending a product or service that the customer can acquire cheaper elsewhere, or even advising them not to purchase a certain item from you at all [00:01:15] [00:01:33].
The underlying principle is to act in the customer’s self-interest rather than your own, which quickly builds trust [00:02:59]. The best practice is to “send across the street” the products with the lowest margin [00:03:31]. This gains trust and encourages the customer to purchase higher-margin items from you [00:03:33].
“If you believe in the stuff that you sell, you can create an environment where someone will trust you faster by giving them a reason to trust you and so that means that you acted in their self-interest rather than your own so that they can feel like you’re not trying to take advantage of them” [00:02:53].
This tactic can also be applied to services, where you might recommend an alternative provider for services outside your core capability, especially if it would cost the client more for you to do it [00:07:18].
The Prescriptive Close
The “prescriptive close” is a combination of setting up trust using ghost products and guiding the customer towards the sale [00:04:45]. It involves:
- Vision of Benefits Give someone a vision of what their life will be like experiencing the benefits of the product [00:03:48].
- Explicit Instructions Explain exactly how to use the product before making the ask [00:03:53].
- Habit Stacking Associate the product’s usage with something the customer already does, such as placing a supplement next to a toothbrush for daily use [00:04:16] [00:05:02]. This avoids the difficulty of creating new habits [00:05:07].
- Simplified Decision After prescribing the entire solution, make the purchase decision easy, such as asking if they want to use a card on file for a “one-click upsell” [00:04:37].
Overcoming Objections (Budget)
When a customer expresses a budget concern, ask if they would like the products ordered by importance, prioritizing what they absolutely need versus items that offer faster benefits [00:05:27]. If an item is removed due to budget, reintroduce the problem it solves, or suggest a difficult dietary replacement to highlight its value [00:06:01].
Another strategy is to identify “old identity” behaviors the customer will stop (e.g., going out, drinking, smoking less) and associate the money saved from those activities with the new purchases [00:06:14].
Shifting to “Shoulder to Shoulder” Sales
The ultimate goal in sales is to move from being “across the table” from a prospect to being “shoulder to shoulder” [00:07:56]. This means both parties are looking at the decision together, with the same information, to make the best choice for the customer [00:08:01]. Sacrificing a sale on a specific item (using a ghost product) is one of the fastest ways to psychologically achieve this alignment [00:08:07].