Alex Hormozi introduces the concept of the "service delivery cube" as a strategy to enhance business value and customer profitability. He emphasizes the importance of repurposing existing resources to create new, valuable offerings without incurring additional costs. Hormozi outlines the cube's six facets: service ratio (one-on-one to one-to-many), client involvement (DIY to done-for-you), support channels, consumption methods (live to recorded), speed and convenience, and a creative pricing exercise (tenfold increase to one-tenth reduction). He argues that businesses can unlock hidden value and increase revenue by reevaluating and adjusting their services along these dimensions. Hormozi also teases an unreleased chapter for fans of his book, "100 Million Dollar Offers," to build hype for his upcoming release, "100 Million Dollar Leads."
"But the other half of the equation is making the customers more valuable." "One of the key ways of doing that is delivering more valuable services."
Alex Ramosi suggests that improving the value delivered to customers is as important as acquiring new customers. By enhancing services, businesses can increase the worth of their customers.
"And so what I want to walk you through is what I call the service delivery cube. And it's Cube because there's six sides."
Alex Ramosi explains his tool for service expansion and value enhancement, emphasizing its structure and purpose.
"One is the ratio, which is what's my client ratio for a service? What if I wanted to do something one on one? What if I want to do small group? What if I want to do one to many?"
Alex Ramosi discusses the first component of the Service Delivery Cube, which focuses on how services can be scaled according to the number of clients.
"The next is what extent is my client going to be involved? Is it going to be do it yourself? Is it going to be done with you? Right, where we're going to help them implement a change of some kind or is it going to be done for you? It's hands off. They just pay us money."
Alex Ramosi explains the second component of the Service Delivery Cube, which categorizes services based on how much the client will be involved in the process.
"What's interesting about this one is that there's another video I'll make at another time called the sales to fulfillment continuum. But basically the easier it is for you to fulfill, the harder it tends to be to sell."
This quote highlights the inverse relationship between ease of fulfillment and difficulty of sales in service delivery models.
"And so do it yourself is one of the hardest things to sell to someone because it's such low value, because all of the efforts on them done with you is a little bit easier to sell because you have a little bit of an educational component, so they feel like they're learning the skill."
Alex Ramosi explains that "do it yourself" services are hard to sell due to perceived low value and high customer effort, whereas "done with you" services offer an educational benefit that can make them more appealing.
"And then finally the easiest thing to sell is done for you because someone just gives you money and they get the result and it's the shortcut."
This quote clarifies that "done for you" services are the easiest to sell since they provide immediate results with minimal customer effort.
"And so that's the second of the service delivery cube of things that I'm looking at. So I might already have one of these. Is there a way I could go up or down on this scale?"
The quote suggests that businesses should evaluate their current service delivery position and consider how they might adjust their level of customer involvement to enhance their offering.
"And where they're going to get support. All right, so are they going to be supported in this process via text? Are they going to be supported in this process via chat? They can be processed via email, via expert representative, via phone, via Zoom. What's the channel or channels that they're going to have access to? Me and my team."
Alex Ramosi outlines the different support channels available and emphasizes the importance of selecting the appropriate ones for both the business and its customers.
"Do I want this to be live? Do I want this to be recorded? Do I want this to be written? Do I want this to be audio? Like, if you're listening on the podcast, do I want to have, like, audiobook versions of this? Do I want this to be video?"
This quote presents the various ways information can be consumed and the need for businesses to determine the most effective delivery method for their services.
"And the thing is, all of these are a lot of variables. And that's okay. The point is that if you already have something, you can look at where it fits on all six of these things and say, can I move it one to the left or one to the right?"
Alex Ramosi emphasizes that while the service delivery cube contains many variables, it is a useful tool for businesses to evaluate and potentially modify their service offerings for increased value.
"And that's what we're trying to find, is I want to unearth where there's hidden value within my company using the existing resources I have that can drive more revenue and profit to the business."
The quote emphasizes the objective of maximizing the potential of existing resources to increase the company's profitability.
"I added in a lost chapter that has never been released. I'm releasing it now transparently. I'm doing that to build hype for 100 million dollar leads."
Alex Ramosi is using the release of a new chapter to create anticipation for his upcoming project while also building his email list.
"So speed, in and of itself is something that people will pay for."
This quote highlights the point that customers are willing to pay for services that save them time, even when free alternatives exist.
"Is there a way that I can cut the results in half the time? Is there a way that I can speed up my support?"
Alex Ramosi is suggesting that companies can innovate by improving the efficiency of their services, which can be a selling point to customers.
"And this is a creative process that I like to think of, which is, if I were to ten x my price of this thing, what else would I include? What else would I be willing to do, right? And on the flip side, if the price of what if I did was one 10th, if I had to fit it into one 10th the price, and I had to deliver more value than I am right now, how would I do it?"
This quote describes a thought experiment to push creative thinking in terms of product value and pricing, encouraging innovation in offerings at various price points.
"So the service delivery cube, the reason that I go through this is because I want to see how I can find excess capacity in my business to generate more revenue and profit without taking on more expenses or liability."
This quote explains the purpose of the Service Delivery Cube, which is to maximize business efficiency and profitability by optimizing service delivery without additional costs.
"We've got the ratio of, is it going to be one to one? It's going to be small group, it's going to be one to many."
This quote outlines the first aspect of the cube, which focuses on the scale of service delivery and how it can be adjusted.
"What level of effort are they going to be putting in? Is it do it yourself, done with you or done for you?"
This quote describes the second aspect, emphasizing the varying degrees of client involvement in the service.
"What level of support or what channels of support, excuse me, are the clients going to get?"
This quote introduces the third aspect, which is about the different support channels a business can offer to its clients.
"How do I want them to consume this. Do I want this to be a live experience or this is a recorded experience?"
Alex mentions the fourth aspect, focusing on the delivery format of the service and how clients engage with it.
"How can I make this more convenient or less convenient? How can I make this faster for them?"
This quote highlights the importance of convenience and speed in service delivery, which can significantly increase the perceived value.
"If I were selling this for ten times more than I am right now, what would I include that I'm not? And then if I had to deliver more value than I currently am, and I was do this for one 10th the price, what would I jetpack into that thing?"
This quote discusses the final aspect, which challenges businesses to think about value addition in relation to pricing strategies.
"Hopefully you found this valuable so I don't choke on myself from this tickle that I'm trying to keep to out use this, think through it, and if you're meeting with your team and thinking, how can we provide more value? This is one of the easiest cubes that I like to walk through."
The quote concludes the discussion on the Service Delivery Cube, suggesting its ease of use for businesses looking to enhance value. Alex also engages with the audience, prompting interaction and feedback.