$100M Pricing Playbook
The $100M Pricing Playbook is a concise, instruction‑heavy guide authored by Alex Hormozi (Acquisition.com) that teaches business owners how to dramatically increase profit through pricing optimization rather than customer acquisition or retention. It begins with a thought‑experiment – a genie offering three levers (double new customers, double purchase frequency, double price) – and quantifies each lever’s impact on revenue, margin and profit using a concrete business example. The author then outlines three traditional pricing models (cost‑plus, competitor‑based, value‑based) and his personal pricing rules that prioritize profit over volume. A key insight is that small percentage tweaks can yield outsized profit gains. The core of the book is the “Instant Profit” playbook, a list of ten low‑effort pricing tactics (e.g., 28‑day billing cycles, processing fees, sales‑tax pass‑through, annual CPI increases, longer billing cycles, price rounding, annual renewal fees, automatic continuity, ultra‑high‑ticket anchors, guarantee/warranty upsells) with estimated revenue uplift ranging from 1 % to 15 % each, cumulatively 27 %–64 % profit increase. Each play includes a personal anecdote, a brief mechanics section, numerical examples, step‑by‑step implementation guidance, and a short advisory note. The book also cites a ProfitWell study of 512 SaaS companies showing pricing improvements deliver roughly twice the profit impact of acquisition and 4× that of retention. Throughout, Hormozi stresses a profit‑first mindset, the importance of testing pricing, and the need for entrepreneurial courage when raising prices.
Topics
Genie Thought Experiment & Three Profit Levers
A narrative framing that presents three mutually exclusive growth levers – double new customers, double purchase frequency, or double price – and asks the reader to choose the most profitable.
Three Core Pricing Models
Overview of cost‑plus, competitor‑based, and value‑based pricing, with pros/cons and why value‑based is the preferred model.
Hormozi’s Pricing Rules & Guiding Principles
A set of personal rules (e.g., raise prices to increase gross profit and reduce delivery cost, focus on lifetime value over first‑purchase price, use capacity constraints to justify price hikes).
Small Percentage Adjustments, Big Profit Changes
Illustrates how tiny tweaks (e.g., 4 % processing fee, .99 endings) can multiply profit 4‑6× in low‑margin businesses.
Instant Profit Playbook Overview
A table summarizing ten pricing hacks, their typical uplift range, and the total potential uplift (26.8 %‑63.8 %).
Play #1 – 28‑Day Billing Cycle
Switching from monthly to 28‑day cycles adds an extra billing period per year, yielding ~8.3 % revenue lift with no conversion loss.
Play #2 – Processing Fees & Second Payment Form
Adding a 3.99 % credit‑card fee and offering a second payment method reduces involuntary churn, boosting LTV by 4‑51 % depending on churn rates.
Play #3 – Sales‑Tax Pass‑Through
Charging applicable sales tax as a separate line item protects margins; can add 0‑10 % revenue with minimal sales impact.