The Game w/ Alex Hormozi

The slightest difference can make the biggest change. Today, Alex (@AlexHormozi) talks about one of the number one issues he faces when he talks to small to medium-sized business owners: knowing the difference between gross vs. net margin. By knowing the difference between these two, you will instantly shift how you view money and the growth of your business.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(1:15) - The difference between gross and net margin & the calculations involved

(2:39) - Gross margin is the one that creates the net margin. Alex shows us an example of why this is the game for him

(5:06) - Increasing gross margin percentage: decrease the cost of fulfilling the thing & increase the price right now

(7:10) - Greatly increasing your margins is how you scale and get enormous profit. A lot of entrepreneurs hesitate to do this because they feel bad about charging a lot for their services/products

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Gross Vs. Net Margin | Ep 247