Secret #14: How To Increase Your Tips (And Your Profit Margins)

Marketing Secrets - Podcast Video (Russell Brunson - FunnelHackerTV)

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YouTube Transcript: English (auto-generated)

00:00
[Music]
00:00
so the big question is this how are
00:04
entrepreneurs like us he didn’t eat and
00:06
take on venture capital we’re spending
00:08
money from our own pocket how do we mark
00:10
in a way the left half our products and
00:12
our services and the things we believe
00:14
in out of the world and yet still remain
00:17
profitable that is the question and the
00:20
podcast give you the answers my name is
00:23
Russell Brunson and welcome to marketing
00:25
secret what’s up everybody this is
00:31
Russell and welcome to marketing secrets
00:33
while I’m in my car of the flashback and
00:37
podcast earlier anyway I’m doing this
00:39
right now because well first off I know
00:42
Justin Williams last week an yelled at
00:44
me saying used to podcasts every single
00:46
week and now that I write three four
00:47
times a week but now you’re out in your
00:48
car yeah it doesn’t very often so it’s
00:50
like crap that’s right and I’m driving
00:51
my haircut today because it’s huge and I
00:54
figured how to mount to stay on my car
00:55
so I can do it while driving still yell
00:57
to me
00:58
it’s what actually happened I had all
00:59
bunch you guys I was doing the podcast
01:02
well with the camera when I did marching
01:04
a car with my phone nobody ever yelled
01:06
at me but they saw me on video I got
01:08
yelled at by everybody so I stopped in
01:10
that way but now let’s mounded up I can
01:12
just drive and talk and I even pay
01:14
attention to you guys so no yelling at
01:15
me all right
01:16
that’s the deal all right so that said
01:18
um physically for a couple of reasons
01:21
number one it’s my daughter’s
01:23
ten-year-old birthday which is insanely
01:25
cool and so this morning I’m actually
01:29
flying out this morning had a chance to
01:31
go and actually take her out to
01:33
breakfast and so I heard her breakfast
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of choice was IHOP and I was like come
01:39
on we think you like waffle me up right
01:40
he’s like really cool places and she’s
01:42
like no I hop and I was like anyways
01:43
we’re driving there so when I’m like -
01:45
Pete kinds of people like IHOP Ellie
01:46
she’s like well who are they I’m like
01:48
grandmas and little kids and they watch
01:51
me get to her me grandma’s with us we
01:52
got in there and we counted her sink
01:53
like 13 or 14 grandma’s in there and
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then
01:57
me and her so I was like that’s it
01:59
anyways kind of funny so anyway that was
02:01
really fun and then she’s birthday party
02:03
so I went racing we got her bike this
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morning and then to active birthday
02:06
party and then I’m actually on a haircut
02:08
because I’m about to fly out to Utah to
02:10
cool things happen Utah number one is
02:13
the Harmon brothers are making our viral
02:15
video and actually started filming it
02:16
today and to be completely honest it’s
02:18
kind of killing me I wish I was there I
02:19
want to be watching it but I couldn’t
02:22
today so I’m flying down there tomorrow
02:23
catching behind the scenes footage and
02:26
all that kind of stuff for our final
02:28
hacker TV show
02:29
let me find out there was something
02:31
really cool and the second cool thing is
02:33
I’m actually going to meeting with
02:35
Timothy Ballard who is due to run
02:36
operation Underground Railroad which is
02:38
I guess it’s a charity or organs they
02:42
don’t exactly what it is but they help
02:44
they help save kids who have been
02:46
abducted and put into sex slavery and so
02:49
we’re going to help them go funnels and
02:50
helping grow that whole mission so I’m
02:52
really a passion project I’m really
02:54
excited for so that’s what’s happening
02:56
on this trip so if watching fun Locker
02:57
TV is to be having things that stuff is
02:59
not clear fellow hacker TV and go hang
03:01
out it’s over there too there’s a lot of
03:02
fun stuff happening so alright my
03:04
message though for you guys today
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and something I don’t know why more
03:10
people don’t think about this is support
03:11
so we would I out today as you know as
03:14
you now know and and my daughter ordered
03:19
the pancake with the Fluffy’s and the
03:21
sprinkles they’re sprinkled on the bacon
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and an egg right her cost of like 3
03:25
bucks something like that and then I go
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and I ordered scrambled eggs side of
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bacon side avocado except it’s in my
03:33
macros for all you healthy nerds and so
03:37
our bill was like 12 bucks you know and
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I look at the server and servers running
03:42
around I grabbed our stuff in his and
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got in waters and grabbing a 1000 a 1 on
03:46
eggs I’m trying to get it’s the same we
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good I did what times had bacon and eggs
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excuse me steak and eggs I put a 1 on
03:51
the steak and some it’s still on the
03:52
eggs I hey that way I was like this is
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an egg copy not for steak so Jen had
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steak and anyone on your eggs scrambled
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eggs yet like you should totally try
04:01
this amazing anyway I digress so um
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looks like own up this whole thing oh
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yeah so the server’s run down frantic I
04:09
get the bill at the end of it I look at
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it it’s like what a 1243 or something I
04:14
was like alright so as someone who tits
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and I’m a good tipper citing cooking
04:17
that much oh that’s a lot more money
04:18
than that but if I was to say okay with
04:20
10% of that means here in a buck what
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$25.00 25 is what he made from me for
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all his efforts or if I do 15% it’s like
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what 2 bucks
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I just 34 says like three and so that’s
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what most people do like especially like
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the grandmas right hop like they have
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their little calculators out there
04:39
figuring out okay well my dollars said
04:41
13 give you exactly the tip that if
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you’re you know if you’re a bad they’re
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going to give you 5% if you’re okay
04:46
attend if you’re great at 15 but that’s
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how it works and I’m looking at this and
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the server was yelling dude I’m agnatic
04:52
he’s killed himself for this little
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thing right and I was just in the office
04:58
before I had to get my hair cut it was
04:59
time stuck in traffic my haircuts in
05:01
three minutes and I missed I’m gonna go
05:02
crazy anyway so I was talking to him I
05:06
was like look if that dude it said get a
05:08
job at IHOP where the average ticket is
05:11
I twelve bucks
05:12
you didn’t same work but got a job as
05:14
steak house or sushi place where the
05:16
average tickets like
05:17
50 or 100 bucks you do the exact same
05:20
amount of working it way more money
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right because it’s just people tip off
05:24
their percentage so if my bill is 12
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bucks you’re getting a dollar twenty ten
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percent right if it’s one hundred and
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twelve bucks you’re getting ten dollars
05:32
whatever that is on that right by doing
05:34
the exact same amount effort so the the
05:36
moral of the story is like if you’re
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serving tables like go and sell more
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expensive stuff because you can be paid
05:42
a percentage of the the at of the ticket
05:47
price right so you guys sell the most
05:48
expensive thing that’s why as a Mormon
05:51
like when I go and I go to restaurants
05:52
and they always that was trying to sell
05:54
you alcohol right because alcohol huge
05:56
profit margins big ticket and they need
05:58
to buy a lot more stuff and so we never
06:00
buy the alcohol and so they and those
06:04
other Mormons are out there know that
06:05
like you’re a nice restaurant and you
06:08
know order alcohol they don’t treat you
06:09
as good because they’re right now crap
06:10
so I always tell people when they ask
06:12
Mikey they asking what you want to drink
06:14
I’m like oh we don’t drink but don’t
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worry we tip really really good because
06:17
I want them to know because I don’t want
06:19
them to be like treat me like crap
06:20
because I didn’t drink because my ticket
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price is going to be smaller right a
06:22
good service understand that and so I
06:24
warned the heads I’m like I have a
06:26
really really good tipper I guys hit
06:27
thirty forty fifty percent some hundred
06:29
percent I’m a great tipper as long as
06:32
you treat me good you should be bad like
06:33
so good super but like I’m a great
06:35
tipper if you shoot me good right and so
06:37
on anyway so kind of the thought is like
06:41
for if you’re serving tables like you
06:44
know be selling the highest ticket thing
06:45
and if I was serving tables again which
06:46
only job I’ve ever had for real serving
06:48
tables I really really really liked it
06:49
right it’s all about like that they
06:52
ticket price right so like if I was a
06:53
server today I would I would have people
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order dessert at first because most I’m
06:57
really not hungry anymore right you know
07:00
hungry anymore you’re not going to lie
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to
07:02
my chica price went down smite it just
07:04
shrunk I be going head-to-head like look
07:05
you a lot of people at the mill they’re
07:09
they’re full or whatever I give you ten
07:11
percent discount to order dessert
07:12
first I would do that because we
07:14
increase my ticket price right because
07:15
everyone wants to zone when you go in
07:17
but when you’re when they’re offered it
07:19
it’s hard to eating so typically so full
07:20
right number to think about all gardens
07:24
are doing this for a while I thought it
07:25
was brilliant after you’re done eating
07:27
they say hey what would you like to
07:29
order for tomorrow and they had a second
07:32
meal so you order second militate
07:33
company the next day now you just
07:35
doubled your ticket price because they
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sold two mills instead of one like why
07:38
would serving tables today the first
07:39
thing I would be doing is or as the
07:40
offering dessert that take their meal
07:42
and then at the end of my leg that was
07:44
good huh how I know you guys are going
07:46
to come back tomorrow but if you want
07:47
you can order off the menu right now
07:48
I’ll go package it up and you can have
07:49
as tomorrow as well and I know a
07:52
percentage would take it by no there’s a
07:53
big percentage of taking the second meal
07:54
it’s now I just doubled my ticket price
07:56
and it tipped me based on the ticket
07:58
price not on you know what I ate while I
08:00
was sitting there and so everything like
08:01
increased value increased value how can
08:03
I increase my ticket right that’s the
08:05
finest every tables again now obvious
08:07
I’m not serving tables I’m serving
08:08
entrepreneurs and a lot of them but
08:10
guess what I’m thinking the same thing
08:11
the same stuff right I know I get paid
08:13
based on a percentage of what our growth
08:17
is like as the entrepreneur in the
08:19
company the way that I make my money I
08:20
do have a salary so I think you legally
08:22
have to do that and how that works so
08:24
you can go all the w2’s know that techie
08:26
nerdy type stuff but then on the rest of
08:29
my payment comes from a percentage of
08:30
profits here right so the more profit
08:32
the more I get to share so I’m always
08:34
thinking like a WoW Krishna proper share
08:36
how can I decrease cost how can I
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increase the ticket value talking to
08:39
some more expensive stuff how can still
08:40
more things and that’s what my mindset
08:43
is because I know that I get paid a
08:44
percentage of what I get people to
08:45
consume so I need to get people to
08:47
consume right same way you do if you’re
08:49
a restaurant and what’s interesting is a
08:52
lot of times speaking you right now
08:54
probably most of us we undervalue what
08:58
we do right we start we try to be like
09:00
the discount leader because because
09:04
that’s what that’s what we’re used to
09:07
doing and so like what ends like we
09:10
propose we put like our own pricing
09:12
values on other people’s like oh I would
09:14
pay a thousand dollars
09:15
see or sell 4,000 it’s like New York
09:16
gently that’s worth that’s somebody else
09:18
they don’t don’t try to discount your
09:20
prices and so watch times less we do is
09:23
in our discount our prices which I like
09:25
or ticket it’s like we’re trying to like
09:26
go back to IHOP and sell keeping we know
09:28
that the money that we make an
09:29
entrepreneur ziz based on the ticket
09:30
price right so they take a price bigger
09:33
bigger money make I’ve said this before
09:34
I’ll say it again di Kennedy once told
09:36
me that he said he said there’s no
09:38
strategic advantage of me in a second
09:40
second lowest price leader in your
09:43
market right so if you can’t be Walmart
09:45
there’s no strategic advantage of being
09:47
like hey Walmart’s the cheapest or
09:49
number two for the second cheapest
09:50
calendula Chlamydia there’s no strategic
09:52
advantage whatsoever but there is a huge
09:54
strategic advantage me like I have the
09:56
most expensive diamond market it can’t
09:58
be the lowest then be the most don’t
10:00
mean to Duke in the middle because
10:02
there’s no high key it doesn’t work that
10:04
way so I wanna think about that okay
10:07
because you so much curvatures like a
10:09
server you’re serving customers serving
10:10
audiences and you get paid they on the
10:12
ticket price of when people should just
10:14
like funnels report okay if I just so
10:16
people my free book and that was it
10:18
guess what I would be around I’d be
10:20
broke yeah did a Facebook live yesterday
10:22
showing three photos we had an inside of
10:25
our book forms now when I’ll send down
10:27
our book offs over three million dollars
10:29
in in collected revenue now he doesn’t
10:31
have that one collect it’s gross what’s
10:33
funny is that look at all these you take
10:35
used product launch like two three five
10:36
thousand dollar product launches most of
10:38
are happy making million to 3 million
10:40
dollar something we’d the same thing as
10:41
we retreat away free book yeah because
10:44
I’m just like the server right like
10:46
opposite I offer to their first and I
10:48
had upsells I offered a second mill I
10:49
did all these kind of things
10:51
because I’m trying to increase the
10:53
ticket price because that’s how I get
10:55
that as an entrepreneur plus gives me an
10:57
ability to serve that is better ok the
11:00
waiter that brings you let’s order
11:02
dessert ahead of time he still get it
11:04
the server lets you order food take it
11:06
home he’s serving even a higher love
11:08
that’s why he has paid more he knows
11:09
that in Greece ticket price but he’s
11:11
able to first stop make the restaurant
11:14
more revenue but second off it gives you
11:16
a better experience you have great meal
11:18
twice G Y business cook tomorrow or
11:20
whatever that might be or maybe as you
11:21
couldn’t winter it all comes down to it
11:23
to that so anyway that’s the moral of
11:26
today’s story hope that helped some of
11:28
you guys mentor some you guys like all
11:29
freaking out trying to be the cheapest
11:31
possible person and it doesn’t always
11:33
work that way obviously got a look at
11:35
what the market will bear but it like
11:38
says ways better typically to be the
11:41
most expensive than the cheapest so
11:44
there you go alright I’m here I’m giving
11:47
hair kemberly four minutes late
11:48
hopefully she canceled my appointment
11:49
because I got your this thing the fair
11:51
jump on the plane going to be super
11:52
bearish so thanks everybody for
11:54
listening on if you would like see the
11:57
video version this go to marketing
11:59
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seventy episodes now so come hang out is
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of things you missed and we’ll make sure
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you get so that’s it thanks everybody
12:12
and we’ll talk to you soon
12:13
I one more marketing secrets if so then
12:16
go get your copies of my two
12:18
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fast startup company in the world

The Marketing Secrets Blackbook - "99 Marketing Secrets That Will Change Your Business… And Change Your Life!"

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Get The First 257 Episodes Of Marketing In Your Car For FREE On This Pre-Loaded MP3 Player…

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