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

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

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What was going through my mind when tipping at IHOP.

On today’s episode Russell talks about going out to breakfast with his daughter for her birthday and how watching the server work so hard to make a small wage made Russell wonder why he didn’t work somewhere that he could make more money, and how that relates to being an entrepreneur. Here are a few interesting things in this episode:

-How Russell would increase his ticket sales if he were still a server.

-How waiters increasing ticket sales relates to being an entrepreneur.

-And why if you can’t be the cheapest in your industry, you should be the most expensive.

So listen to Russell’s awesome advice on how to increase your ticket sales and make more profit for yourself.

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

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