Why Changing the Offer Won't Fix This Growth Ceiling — Transcript

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1. 0:00What's up, Natasha? How are you?
2. 0:02>> I'm amazing from the Boogie Down Bronx.
3. 0:04Thanks for taking this call.
4. 0:05>> No, you bet. Thank you. You're on
5. 0:08Heroszi hotline. How can we help?
6. 0:10>> Okay, so I have a mobile archery
7. 0:12business in New York City where we bring
8. 0:14archery to schools, companies. We set up
9. 0:17the archery range and we pop up. So, in
10. 0:20the past couple of years, I have seen an
11. 0:22increase in revenue, but it's been
12. 0:24staying around the same. So in 23 we
13. 0:26made like 249 and 100 in bottom line in
14. 0:30profit. And last year we made like 273
15. 0:34and 90 still like around profit. And
16. 0:36then this year to date I did a lot
17. 0:38better y'all.
18. 0:39>> Awesome.
19. 0:39>> We're around 297 with uh the same around
20. 0:4390 for a profit but I'm trying to get to
21. 0:46a million. And so I would like to ask
22. 0:48you a question on a strategy or
23. 0:50something that's like been bugging us.
24. 0:51Okay. If you don't mind.
25. 0:52>> Go for it. So, um, a lot of schools
26. 0:56share that they have a cap on their
27. 0:57spending and it usually varies. So, here
28. 1:00in New York City, you know, each school
29. 1:02is like their own business. They have
30. 1:03their own like budget versus elsewhere,
31. 1:06school districts have the high level
32. 1:07budget and it pushes down. And so, last
33. 1:10week, you know, I was pitching and I was
34. 1:12using some of the techniques that you
35. 1:13taught. And someone was like to my 30k
36. 1:16offer, they were like, "Hey, no, um, we
37. 1:18really only have 10K to work with." And
38. 1:21so now it's sort of interesting. I'm
39. 1:23trying to figure out do I like sew good
40. 1:25seeds? I like you know say hey let me
41. 1:28work with this 10k but knowing that you
42. 1:31know when more funding comes in through
43. 1:32different grants or funding source for
44. 1:34the schools they'll buy more but then do
45. 1:37I hold the line and say let me hold that
46. 1:40space for another like school but the
47. 1:43vision and goal is to have more youth
48. 1:45taking part in archery right Olympic
49. 1:47archery it's fun it's healthy so
50. 1:49[sighs and gasps] that's where I'm at um
51. 1:51and it's been exciting like I think we
52. 1:53can make 500k uh this whole coming month
53. 1:56by end of year. But I just feel like
54. 1:58there's going to be points where there's
55. 1:59push back because of, you know, schools
56. 2:00have a certain budget.
57. 2:07>> You want to take it?
58. 2:10>> No, go for it. Pricing.
59. 2:12>> Yeah. So Natasha, one of the one of the
60. 2:15really interesting things about like the
61. 2:16more money you make, the more money you
62. 2:18make is that
63. 2:21in the beginning sometimes you have to
64. 2:22artificially hold this line of supply
65. 2:24and demand so that you can make higher
66. 2:27margins. Now over time you're just
67. 2:29demand increases and then you feel very
68. 2:31confident in holding your line because
69. 2:32you're like I don't really care. I have
70. 2:34more demand than I can deal with. But in
71. 2:36the beginning, you basically have to
72. 2:38make this trade, which is why I think so
73. 2:39many people kind of earn the right to
74. 2:40continue to charge more over time
75. 2:42because they do better and better. The
76. 2:43demand goes up and supply stays fixed or
77. 2:45goes down and so then price rises,
78. 2:47right? So if you feel confident that
79. 2:49you're going to hit 500,000 and you you
80. 2:52want to keep those prices because your
81. 2:53margins are they're not I mean they're
82. 2:55they're they're good, but they're not
83. 2:56like, you know, insane, especially as a
84. 2:58smaller business. Um I'm more inclined
85. 3:02to try and say, "How can we increase
86. 3:04your flow?
87. 3:06so that you don't feel this dread about
88. 3:09not taking deals. Does that make sense?
89. 3:11So like we use marketing to artificially
90. 3:13inflate the supply demand so that we can
91. 3:16maintain the pricing power that we want
92. 3:19for the services and products that we
93. 3:20sell.
94. 3:24So right now the question is what are
95. 3:27the core promotional activities that
96. 3:28you're doing from advertising to let
97. 3:30more people know about your stuff so
98. 3:32that you can have more interest so that
99. 3:34you have five other deals behind this
100. 3:35deal so you're not as worried about it.
101. 3:39>> Good question. So in Howard Group, one
102. 3:42of the things I shared email marketing
103. 3:43was my go-to because one of the things
104. 3:45you share a lot is y'all pick one. Don't
105. 3:48be everywhere. Okay. And so email
106. 3:50marketing was for was what I did this
107. 3:52past year, but I did it monthly. And it
108. 3:55worked really well. That's why I'm in,
109. 3:57you know, further along on the revenue.
110. 3:59>> And then we're doing Archery Con in
111. 4:02Brooklyn um in September. And I plan on
112. 4:04like doing I like I was inspired by you
113. 4:06yesterday and I was like, Tasha, don't
114. 4:08just make it free, you know, to run ads.
115. 4:11Why don't you like make it free but have
116. 4:13upsale and like maybe do an archery con
117. 4:16bundle where they get like a arm guard
118. 4:18and get some stuff for to cover the ad
119. 4:20spend? Yeah. And so I'm working through
120. 4:22some of the things you were sharing
121. 4:23yesterday. But that's going to be my
122. 4:25lead generation too, right? For schools
123. 4:27and communities and companies and all
124. 4:30things in New York City. So I hope that
125. 4:32helps. Like I've been listening. I just
126. 4:34feel like I'm in this weird space.
127. 4:35[laughter]
128. 4:35>> No, you're So let me let me ask you
129. 4:37this. So, what would it take for you to
130. 4:415x the amount of email outbound that
131. 4:44you're currently doing to generate deals
132. 4:46and leads?
133. 4:48>> Just doing it. [laughter]
134. 4:49>> Okay. So, Natasha, why don't I just save
135. 4:52you so much time and risk and effort and
136. 4:54just say just do that? Because the thing
137. 4:57is is most businesses, especially under
138. 4:59a million dollars a year, the solution
139. 5:01almost always is more. And so what you
140. 5:04perceive as high volatility is actually
141. 5:08a symptom of a root cause which is
142. 5:10insufficient volume. You're not doing
143. 5:13enough which is why it feels so
144. 5:14sporadic.
145. 5:17>> So that's it. So instead of being like I
146. 5:19have to change my model. What if I look
147. 5:20at my pricing? It's like you're just not
148. 5:21doing enough volume.
149. 5:26>> So we just need to let more people know
150. 5:27about our stuff. Keep the prices where
151. 5:28they are. Margins are okay. If you were
152. 5:30able to 5x the amount of deals you're
153. 5:31doing, you would have a disproportionate
154. 5:33drop to the bottom line. Right.
155. 5:35>> I would.
156. 5:36>> Right. So, it's like let's not mess with
157. 5:38things. You have like is there a model
158. 5:41issue? I'm sure there's things that
159. 5:43could get improved, but that's not the
160. 5:44constraint of the business.
161. 5:47>> Okay.
162. 5:49>> Got it.
163. 5:50>> We just need to put more go. Makes
164. 5:51>> sense.
165. 5:52>> Yeah. Just need to put more go in the
166. 5:53car.
167. 5:54>> Yeah. Absolutely. And then I think one
168. 5:56of the things that I want to tell you
169. 5:58that you'll be happy about with me is I
170. 6:01reached out to like some folks I know
171. 6:03higher up superintendent. I was like,
172. 6:05"Do you want to do a district
173. 6:06tournament?" And then that allows me
174. 6:08also to pitch like schools to do a
175. 6:10district thing to help kids compete.
176. 6:13>> And then it goes back to the messaging
177. 6:15you said I got to do more of. But you'll
178. 6:16hear about it and I'll give you an
179. 6:17update in a week or two or three.
180. 6:20>> That's great. I love that.
181. 6:23I think you're also our lucky hotline
182. 6:26caller because we just hit three million
183. 6:28copies sold.
184. 6:28>> So, we just passed Harry Potter golden
185. 6:31uh golden.
186. 6:32>> That's all you. You gave us the lucky
187. 6:33>> the goblet of fire.
188. 6:35>> I just want to put that on you that you
189. 6:36gave us that luck.
190. 6:37>> Yeah.
191. 6:39>> Secret snaps. Laya. [laughter]
192. 6:41>> Well, Tasha, do you feel clear on that?
193. 6:43>> Yeah. So, my homework is to jump into my
194. 6:46um CRM. We'll definitely look at some of
195. 6:49the materials that you sent us and just
196. 6:51start crafting a great offer sort of
197. 6:53too, right? Like don't make it
198. 6:55>> where do you have your current offer
199. 6:56though, right? Your current like I want
200. 6:57to change as little as few things as
201. 6:59possible.
202. 6:59>> Why do we need to change anything?
203. 7:01>> Just do more volume of the thing that's
204. 7:02getting you 300. We want to say okay
205. 7:04well you're doing a monthly thing. Why
206. 7:05don't we think about this weekly or
207. 7:06bi-weekly?
208. 7:09>> Okay. Yes, sir. I will do that.
209. 7:11>> All right. Rock and roll. Appreciate
210. 7:13you.
211. 7:13>> All right. Focus. [laughter]
212. 7:15>> I will. I will. All right.
213. 7:18>> Nice to meet you, Natasha.
214. 7:20>> Thanks again.
215. 7:20>> Have a good one, Natasha.
216. 7:22>> Have a good one. Y'all,
217. 7:23>> if you're not getting as many leads as
218. 7:24you want and your business is demand
219. 7:26constrained, [music] meaning you could
220. 7:27service more customers than you
221. 7:29currently have, then this is for you.
222. 7:31So, marketing is changing and I think
223. 7:33ACQ tends to be on the bleeding edge of
224. 7:34this stuff. We certainly spend the money
225. 7:36uh to do it, but we also build [music]
226. 7:38custom software and we pay amazing
227. 7:39vendors and very expensive people to
228. 7:41figure out the system that we have right
229. 7:42now. And I want to share it with you
230. 7:43kind of open kimono style. [music] If
231. 7:44you're not getting as many leads as you
232. 7:45want, boy, do I have the thing for you.
233. 7:47Click below, book call, and uh hopefully
234. 7:50I'll see you in Vegas.