NEVER lower your prices...

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.

[RyanPineda]

Alex is my favorite YouTuber hands down. One of the few actually running big businesses and talking about it!

[noahkelchner]

I’ve been in construction for over 10 yrs. went off on my own this year for the second time. I’ve already raised my prices twice. Perks of being in a non competitive market. Everyone is busy but not everyone has changed thir prices. I’d rather have less stress from less customers and make more money per job.

[Bryan-odfv]

I learn more watching alex than school. Appreciate these videos bro

[AscendedAngel]

Same experience when I had my gym. Lowering my bootcamp price increased my churn. It was a stressful experience because I had to spend more money on marketing. I thought that by advertising a lower price would bring in more clients. That had a negligible effect. Perceived value. If it's a cheap price, then maybe it's a cheap product or service.

[wesfin]

2:15, 3:33, 7:33
Decreasing price usually doesn't decrease churn instead it just lowers the value associated with the product and lowers profits
2:35
Increase price to what most customers value the product at and it will decrease costs and increase profits and affirm the premium branding
6:09
Ways to increase the lifetime value of a customer in the order of importance (kiosk)

[xyoutube]

Alex I would say it's one of my mentors, I really try to stay on track with every word you spread. Keep it up brother

[robroy]

Loving these videos! One of the biggest problems with ANY price change is that business owners often make the change without testing anything first. You need to run an isolated pilot program or test different offers and the results before committing. Testing is the ultimate rule if you want to minimize risk/loss and maximize profits while gaining market intel.

[spacewalker]

Hey Alex, if you ever read this please know how much I appreciate your content. Thank you so much!

[GO-]

I can’t believe this content is free. We just dropped our prices on a promotion and the results were very similar. Now I know why....

[homebuyerlab]

I made the mistake of lowering prices when I owned a gym.

Best results I ever got was an 8 week transformation program where I charged 2x my normal package, but included more accountability and supplements

[modelingsuccesssuccessfull]

I literally just said to you my team last week, thank you for the reassurance on not lowering price to increase business, Alex.

[Creyente]

I also made a bad desition, I wanted to lower our costs, so after testing a new provider for over one year, I switched providers. I almost lost all clients who kept calling me all day, for a simple configuration problem the new provider couldnt solve because the new technology was not compatible with most of our clients computers. 3 days later we had to go backto the old provider. I was lucky no client left.

[austinwatson]

I hope people realize how much most people pay to get information like this.

[ShainaReed]

So good! Love how Alex simplifies such amazing business lessons!! Thank you!

[ryancaughron]

I'm a smart dude, but you just BLEW MY MIND in <9 minutes. Thank you.

[scottriley]

As a consumer and not a business owner, I avoid the lowest priced products or services. I lean toward the “you get what you pay for” purchase model. Jimmy Johns> Subway.

[andrewdavidcourtney]

I can feel the anguish and frustration in Alex’s voice about losing that $5M. My question is how the hell did he get back to his normal pricing after opening up Pandora’s box?

[keenheat]

I guess in a way, this mean poor people are the worst customer in term of profit/operational complexity. In similar story, I was try to give away my old piano (worth around 5k-10k on amazon) for free since I was getting a new one. People were complaining that I didn't do free delivery of the piano. Learn my lesson, to at least charge $5-$20 buck when you want to give some thing away for free and just not take the money when the receiver arrived. It help as a filter out the high value receiver from high cost receiver where even being free is not enough.

[seempaq]

Alex to the moon. 🚀 reading and listening to the 100M offer on my honeymoon and I’m it!

[ParadoxUniverse]

I agree, didn't work for me. Everything stayed the same people who will buy will buy for the value not the price