Raising Prices Actually DOES Increase Value

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.

[JohnBradydoesstuff]

I was a lawyer for years. Clients I gave deals to never listened, assumed I was incompetent and were generally pains in the ass. Clients I charged as if I didn’t want their case, I.e. more than I should have, would have lit themselves on fire if that had been my legal advice. People absolutely equate quality to price.

[justino.]

Given that real value is provided, of course.

[jesusmehalorodriguez]

Years ago I used to do private tutoring at my local school. When I started, I charged a super cheap price of $20/hr. I had nothing to do after classes and could use a little bit of money. Nobody called me at that price. There was this one person I tutored in class daily said I was providing a $60/hr service and was amazed I was charging $20. I redid the posting at $60/hr and my week was completely booked. It is true, people do sparce price with quality. Same service.

[MoneyIQ_YT]

It’s interesting how this same story can be taken from 2 different pov

the consumer perspective with the moral of “Don’t get fooled into thinking something is more valuable because it’s more expensive”

Mean while the producer mindset is “if they believe higher price is more value then let’s increase the price”

[DeyBwah]

Truth. I did my research on the most expensive gyms in my area, and then raised my prices to be the most expensive by 30% and my clients are getting incredible results. My OG members who are grandfathered in, are spinning their wheels, and not making much progress at all.

[entanglednerves]

Cialdini speaks about expensive=best in the very first lesson in his book Influence. Well explained visually, Alex

[shadysneaky]

Every product have that sweet spot for price. Doesn't matter if it's a good product but if the price is just absurdly high. It's not gonna work. So you must discover that 'just right" level of price.

[bradfordrusso]

I tell a similar story in my book. But, it's about selling cheese in France.

The French government was conducting research on inflation. They took large wheels of cheese, and cut them in half. Then priced to two identical halves differently. One was offered at about 50% higher per Kg (per lb.). They discovered the higher priced one sold faster.

I tell this TRUE story to my clients (small business retailers). They Still react with FEAR. Refusing to raise their prices.

[ETRNLMangekyo]

No one understands this concept more than the *VW Group (Porsche, Lamborghini, Audi, Bentley etc..)* These cars all share the same parts yet some are astronomically more expensive than the others. It’s deception by perception.

[DLux]

"Cheap prices attract cheap people." ~ Girlwiththedogs

[THEAPRONGUYS]

Instead of just raising your prices, come up with a new package or upgraded product or service showing more value but increase the price. Don't raise your prices, change the menu

[Imagineitwrite]

And a twist: sometimes cheap wine tastes better lol

[m.j.]

Isn't it also a thing that people who pay more talk themselves into it afterwards just to justify that they spent way more than they actually had to, even or especially if it turns out that the product is not that great?

[antmanandthecod]

Which is the foundation of capitalism. It’s like the lobster story. Lobster was for poor people and slaves but now it’s for rich people because it’s been marketed that way

[cmdrfunk]

This only applies to certain people. We cheap bastards happily drink the box wine

[The_Nomad_Detailer]

Ive noticed when raising pricing in my business, I get significantly slower.... is this normal to happen for a time?

[noryright]

Small businesses strugle with this ... any advice ?

[mizu]

But that’s cause we actually believe a dollar is valued in what it’s worth. But once you understand it’s overvalued to what it’s actually worth then I drank that whole bottle and it all taste the same .

[thugvida]

I’ve tried cheap alcohol (less than $10) and mid grade. And yo cheap alcohol isn’t even drinkable. It tastes like death with extra death. When more mid grade stuff just takes like death

[KRiiSPE]

So over charge for your products or services. Got it.