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Alex Hormozi - How I RAISE PRICES without losing sales...(using this psychological trick)

Thumbnail of the video “Alex Hormozi - How I RAISE PRICES without losing sales...(using this psychological trick)”
Community upload. AI output has not been independently verified.
Author: Alex Hormozi
Categories: Business Psychology
Tags: business, psychology
Views: 2 · Last viewed: 2026-10-15 07:48 UTC

Short Summary

Main recommendation: raise prices by anchoring a higher "top" price, offering a familiar lower payment as a home base, and then presenting an upfront prepayment discount that brings the price back to the actual target. The speaker says this structure makes the higher price easier for sales teams to sell with conviction, and that fears of losing sales are mostly in the seller's head.

Key Points

  • The speaker frames the fear of losing sales from a price increase as largely psychological, since most of the hesitation comes from the business owner and sales team.
  • Each price increase uses a "home base" number: the price customers are already comfortable paying, which the sales team keeps saying so they feel confident.
  • The price actually being targeted is not the price stated first; the higher anchor makes the prepayment discount feel like a saving.
  • The "prepayment discount" is the number the business actually wants, and it should feel only marginally more than the comfort price.
  • Uneven payment splits, with more cash up front, are preferred for cash flow and to cover onboarding costs.
  • Clearing the pipeline by announcing the increase in advance creates urgency, speeds deal closing, and protects against objections about hearing a different price.

Details Worth Noting

  • Concrete instructions:
    • Step 1: Identify the current price (for example, $2,000) and the target price (for example, $3,000).
    • Step 2: Set the new top price significantly higher than the target, bumping it up substantially (for example, state $4,000 as the new price when the actual target is $3,000).
    • Step 3: Tell the buyer they can pay the stated price in installments of the familiar amount (for example, $2,000 now, with the remainder in 30 days), so the familiar number stays as a home base.
    • Step 4: Offer a same-day prepayment option at the target price (for example, pay $3,000 today) so the buyer sees a discount.
    • Step 5 (for larger jumps, e.g. $4,000 to $5,000): skip the intermediate figure and anchor at $6,000, then offer "$4,000 today and $2,000 in 30 days," or pay an extra $1,000 to settle it all today.
    • Step 6: For a jump like $10,000 to $12,000, consider a split such as $6,000 + $3,000 + $3,000, which keeps more cash upfront and makes the prepayment option more attractive.
    • Step 7: Announce the price increase to your team and customers ahead of time (for example, "next month" or "in the next two weeks") to clear the pipeline and build urgency.
  • The speaker says to keep the difference between the comfort price and the prepayment discount small so buyers feel the extra payment is minor.
  • The speaker says that over time he's become more experienced ('weathered') and now prefers having a repeatable process rather than just telling people to rely on confidence alone.
  • Caveat: the speaker's examples are specific to their own business context, and the transcript does not provide data on outcomes across different markets.

Bottom Line

Raising prices works better when the sales structure is planned in advance: keep a familiar payment visible, anchor a higher price, and use an upfront discount to land the number you actually want.