Watch This If You Own a Service Business | Ep 971

This episode follows Alex Hormozi advising Corey, co-owner of an HVAC cleaning and ductwork repair company generating $1.25 million in annual revenue at a 38 percent net margin with $60,000 in debt. The conversation examines incremental changes to pricing, advertising, customer reactivation, and partnerships that address demand constraints while preserving existing operations.

Raising prices to strengthen buyer conviction
Corey’s full-service HVAC cleaning carried a $1,575 price tag per unit with a two-year growth-free guarantee. Hormozi recommended testing a further 10 percent increase. The mechanism rests on the value equation: higher prices can raise perceived likelihood of results when the offer is otherwise credible, because buyers interpret the price as evidence the provider can deliver. In normal service categories, this effect appears once close rates already exceed roughly 80 percent, indicating underpricing rather than market rejection. Hormozi noted that a 10 percent lift would expand net profit by about 25 percent at current volume provided close rates stayed above 65 percent. Corey implemented an earlier 23 percent increase after a prior workshop and recorded both higher revenue and improved close rates, confirming the pattern held in his market.