Your offer might not be making money because what you're providing is not high margin or valuable enough.

Understanding the Sales to Fulfillment Continuum

The first step in creating a high-value offer is understanding the sales to fulfillment continuum.

This concept helps us balance what is easy to sell versus what is hard to fulfill.

  • Easy to Sell, Hard to Fulfill (DFY): Services like "done for you" solutions, which are attractive to clients but require significant effort to deliver.
  • Hard to Sell, Easy to Fulfill (DIY): Products like courses, which may require strong marketing efforts but are straightforward to deliver once sold.

For new businesses, focusing on "easy to sell, hard to fulfill" options is beneficial.

This approach helps generate cash flow and build a client base, which can later be leveraged to create more scalable solutions.

The Tesla Pyramid Approach

Tesla's business model provides a valuable lesson.

They started with high-end, expensive products (the Roadster) and gradually moved to more affordable options (Model 3).

This strategy positions the company as a premium brand and allows them to price-anchor their more affordable products as high-value options.

Similarly, start with high-ticket, custom solutions that are harder to fulfill but provide significant cash flow.

As you grow, introduce more scalable products at lower price points, leveraging the credibility and customer base you've built.

So ultimately, you want to move from done-for-you, to done-with-you, to do-it-yourself.

In other words, you create flow, monetize it, then add friction (make it harder to sell and easier to fulfill).

Listing and Solving Problems

To create a high-value offer, start by listing all the problems your potential clients face.

For example, in a fitness business, issues might include grocery shopping, meal prep, and exercise routines.

Next, consider various delivery methods for each problem:

  • One-on-One Solutions: Personalized grocery shopping tours, custom meal plans, direct support via calls or texts.
  • Small Group Solutions: Group grocery tours, shared meal planning sessions.
  • One-to-Many Solutions: Recorded tutorials, live webinars, automated tools like grocery calculators.

The Delivery Cube

Use the Alex Hormozi Delivery Cube framework to brainstorm comprehensive solutions:

  1. Delivery Format: 1-on-1, small group, 1-to-many
  2. Customer Effort level: DIY, DWY, DFY
  3. Support Level: Text message, email, live chat, phone calls, video consultations.
  4. Consumption Method: Video, audio, written content, live sessions.
  5. Speed & Convenience: 24/7 availability, 9-5 availability, fast response times, real-time.
  6. Bonus - try to think what you would provide if you
    1. had to charge 10X what you think of charging
    2. had to charge 1/10 what you think of charging

Think creatively about how to deliver your services in ways that maximize value while managing fulfillment costs.

Irresistible Offer Framework (Part 1)

Trimming and Stacking for Maximum Profit and Value

After listing all potential solutions, trim those that offer low value or are too costly to fulfill.

Focus on stacking high-value, low-cost solutions to create a comprehensive offer that addresses all client problems effectively.

Evaluate each solution using the value equation:

  • Financially Valuable: Does the client see it as worth the investment?
  • Perceived Likelihood of Achievement: Does the client believe they will succeed with your help?
  • Effort and Sacrifice: Is the process easy and convenient for the client?
  • Time to Result: How quickly will the client see results?

Finalizing Your Offer

Select the solutions that provide the highest value and profit margin.

Ensure your gross margins are around 80% or higher, meaning if you charge $100, the cost of fulfillment should be $20 or less.

This approach ensures you can scale your business while maintaining profitability.

As you grow, continuously refine your offers based on client feedback and operational insights.

Conclusion

Start with high-ticket, custom solutions to build credibility and cash flow, then introduce scalable products.

Use the Delivery Cube framework to think creatively about how to deliver your services and maximize value for your clients.

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