What is the recommended pricing strategy for a service business?

The recommended pricing strategy involves accurately costing all services for different delivery levels, then multiplying that cost by 5 to 10x. This tiered approach accounts for variable and fixed costs, and can be dynamic based on headcount. Pricing should also consider the client's budget and perceived value, sometimes referred to as a 'zip code tax'.

How can event planners leverage B2B events for leads?

Event planners can leverage B2B events by securing a booth, offering speaking slots to present valuable content (like '20 mistakes people make'), and using a QR code to offer presentation slides as a lead magnet. The opt-in question for the slides should gather data on how many events the prospect hosts annually, creating a qualified lead list.

What is a Video Sales Letter (VSSL) and how is it used?

A VSSL is a pre-recorded video sent to a prospect before a sales call to frame the conversation, explain the offer, and address common objections. It helps qualify leads and can lead to a one-call close by saving time and ensuring prospects are informed and engaged.

What are the key elements of a scaling roadmap for a service business?

A scaling roadmap includes creating an auto-quote generator, implementing referral/promotion incentives, conducting daily sales training with VSSLs, and increasing outreach volume through various channels like LinkedIn and dialers. It also involves product improvement, customer segmentation, and focusing on high-profit customer types.

How can a business increase its Customer Lifetime Value (LTV)?

LTV can be increased by getting existing clients to buy more of the same service. Asking prospects how many events they do per year allows the business to offer a package deal for multiple events, effectively tripling the LTV by converting a one-year client into a three-year client.

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If I Wanted to Build a Service Business in 2026, I'd Do This

Alex Hormozi

Entertainment3 min read39 min video

Aug 22, 2026|2,863 views|262|4

Alex Hormozi Alex Hormozi Business Tips Alex Hormozi Gym Launch Secrets Hormozi Business guides Business tips Skillsets Skill Stacking The Game Podcast mozination 100M Offers 100M Leads

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Key Moments

TL;DR

Event planning pricing is an 'art' that needs fixing: multiply true costs by 5-10x and use a dynamic quoting system. This improves margins and speeds up sales, crucial for scaling.

Key Insights

The average deal size for event planning has increased from $34,000 to $44,000 in the trailing twelve months, with audio-visual spend ranging from $20,000 to $150,000 per event.

Pricing should be calculated by first determining true costs and then multiplying that number by 5-10x, with the multiplier influenced by the client's wealth (a 'zip code tax').

Implementing a dynamic pricing module allows sales teams to quote accurately on discovery calls, handling objections and scope changes live, rather than via email.

A price lock guarantee can be offered, with a 10% discount for prepayment, helping to pull cash forward and mitigate non-payment risks.

For B2B events, the strategy shifts to leveraging the audience as potential customers, using speaking slots and booths to generate leads and upsell future services.

Sales teams should transition from end-to-end closers to appointment setters (SDRs/BDRs) focused solely on booking discovery calls for the owner, significantly increasing conversion potential.

The core human need for connection drives the event industry's massive market potential.

Joey Goone, owner of Utopia Experience, identifies a fundamental human need for connection, community, and belonging as the bedrock of the event planning industry. This primal DNA-driven desire fuels a market currently valued at $1.5 trillion, projected to reach $3.5 trillion by 2033. This deep-seated need validates the scalability of the event industry, providing a strong foundation for business growth. The challenge, however, lies not in the demand for events, but in the business's ability to effectively capture and monetize that demand through strategic pricing and sales processes.

Revising pricing to ensure profitability and efficiency is paramount.

Alex Hormozi emphasizes that Utopia Experience's current pricing model is abstract and leads to margin issues. The recommended approach is to first meticulously cost out all services for different delivery levels. This true cost should then be multiplied by five to ten times to establish the price. This multiplier can be dynamic, influenced by factors like the client's perceived wealth or location (dubbed the 'zip code tax'), acknowledging that clients in affluent areas may pay more for the same service. A dynamic pricing sheet, potentially powered by AI or an if-then logic in Excel, should be created. This sheet will calculate costs based on headcount, variable costs (sponsors, vendors), and fixed costs (payroll, overhead). The system should dynamically output pricing for clients, eliminating lengthy proposal delays and ensuring standardized, profitable pricing.

Implementing standardized pricing and live quoting transforms the sales process.

A key recommendation is to move away from presenting invoices via email, which often leads to delays and unresolved objections. Instead, proposals and pricing should be handled live during discovery calls. This allows sales reps to address questions, handle objections, and make scope adjustments in real-time, leading to a more consultative approach. Clients appreciate this transparency and the immediate impact of changes on their overall investment. A price lock guarantee can be offered, ensuring the quoted price remains valid as long as the scope doesn't change. Furthermore, offering a 10% discount for full prepayment incentivizes clients to pay upfront, improving cash flow and reducing the risk of non-payment, a lesson learned from a current lawsuit over unpaid services.

Mentioned in This Episode

●Software & Apps

●Companies

●Organizations

Scaling Your Service Business: Key Steps

Practical takeaways from this episode

Do This

Cost out true costs and 5-10x them for pricing.

Implement a dynamic pricing sheet (AI or Excel).

Offer a price lock guarantee for clients who don't change scope.

Provide a 10% discount for prepayment.

Develop tiered pricing structures based on attendees, vendors, or sponsors.

Leverage B2B events for lead generation, speaking opportunities, and direct sales.

Use Video Sales Letters (VSSLs) before sales calls.

Structure sales team roles as appointment setters (SDRs/BDRs) if the owner is a better closer.

Conduct daily sales team check-ins and weekly one-on-one coaching.

Focus on a narrow avatar and systematize solutions for higher margins and scale.

Implement multi-year agreements with discounts for upfront commitment.

Utilize the value of money by encouraging prepayments, especially at year-end.

Avoid This

Do not present invoices via email; always do it over the phone.

Do not pull pricing out of thin air; base it on cost.

Do not rely solely on traditional sales methods; incorporate VSSLs and other modern tools.

Do not try to do too many things; focus on what makes the most money.

Do not assume your sales team is performing optimally without daily check-ins and audits.

Do not let pricing issues limit demand; fix the offer and margins first.

Do not try to 'jab' clients on scope changes; have a clear process for adjustments.

Do not spread resources too thin; narrow down acquisition channels to the most effective (e.g., LinkedIn).

Event Planning Deal Size Trend

Data extracted from this episode

Time Period	Average Deal Size
Last Year	$34,000
Trailing 12 Months	$44,000

Common Questions

To scale, an event planning business must first fix its offer and pricing by understanding true costs and pricing 5-10x those costs. Then, optimize the sales motion with tools like Video Sales Letters (VSSLs) and structured team training, and focus on high-leverage acquisition channels like B2B events and LinkedIn.

Topics

Business & Entrepreneurship Pricing Strategy Customer Acquisition Lead Generation Career & Skills Sales Process Optimization Service Business Scaling Sales Team Management Offer Refinement

Mentioned in this video

Organizations

Utopia Experience

Joey Goon's event planning company based in St. Louis, Missouri, aiming to scale to $5 million per year.

Companies

acquisition.com

Mentioned as a hypothetical client for an event, suggesting the speaker's familiarity with their events.

Identified as the primary and most effective acquisition channel for the business, with a proven process to leverage.

Media

Scale or Fail

The name of the show/competition where Joey is participating to scale his business.

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