When Someone Wants a $100 Discount

How I got here…

21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Closed down 6th gym. Lost everything.
26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time.
26 yrs old: In desperation, started licensing model as a hail mary. It worked.
27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months.
28 yrs old: Started Prestige Labs. $20M the first year.
29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months.
31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal.
31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it)
32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses.

Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos).

To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story.

You either get an epic outcome or an epic story. Both mean you win.

Keep crushing. May your desires be greater than your obstacles.

Never quit,

Alex

*FULL DISCLOSURE*
I make content to make money - just - on a longer time horizon than most. I want to build trust with business owners so we can find the best ones and help them scale. And if they’re awesome, write them a check and go all the way as partners.

[rileyv]

Also use this in scenarios where you would like the customer to spend more. If you spend x you get xxx in extras. Encouraging more customer spending

[Ewartist]

We did this at the Ritz-Carlton when we gave a $600 a night room away for free. It only cost us $18 in room turnover fees, but the guest feels like they just got S600. On top of that, the guest then buys hundreds of dollars on meals, gifts, and services from us during their free stay.

[FSCHW]

Problem with that is if you are giving me $200 of your stuff I know it’s not $200. I want $100 less leaving my hand.

[simperingham]

I came up with the same reasoning a couple of years ago. Thank you for reaffirming how smart I feel about myself 😂

[norm]

This is especially true in "fast decaying goods" like fresh food and beds in hotels. They are often worthless one day later, so better give the upgrade or an extension to a customer maybe even costs you very little.

[wesfin]

Instead of free item, offer 2 or 3 items for the price of one.
If you’re running high margin (as you should be) it’ll always be more profitable to run that type of promotion than a straight up free product.

[Rnue]

When shopkeeps do that to me I shop elsewhere.

[coppersulphate]

In summary give $400 worth of value for the same price of $200

Great strategy and I'm planning to use it in my business

[Rockardo_]

Fuckkk this has been one of the best things I’ve heard from him

[EstrategaMarketerPR]

this remind me on trading using supply and demand in the discount zone 😂🤣😂🤣

[hechizo_coyote]

Obviously, that’s why I always argued with the shop owner when she would give me gum instead of change.

[WHITELIONNYC]

Me: great I'll give you 90% of what I offered; assuming the $100 is off of $1, 000.

[phredbookley]

I'm not sure I understand this one. Is the idea to give out digital things instead of physical things?

[hajimeippo]

Didn't understood Anyone help, suppose How would we use this for a digital service that's worth $500 and they're asking for $100 discount?