The Magnetic Middle Price HACK

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.

[_self_improvement_]

I have seen this concept many times on yt, but you explained it much better

[iamrogercoles]

Very well said! Thanks for breaking it down 🎉

[shivinunitholi]

The small regular and large concept works almost everywhere - be it burger biz or course

[Daddy_Ogg]

That's why this concept is thaugt in basic business classes early on.

[bkbbcfm]

Bruh, this guy is smart af, and also the team behind him👍👍

[amorrobel]

Thanks for the simplicity of this concept Alex.

[ZonymaUnltd.]

In all honesty, working at Jimmy John’s and Starbucks as my first two official jobs taught me A LOT about business, marketing, and sales.

[tylerp]

Gotta get you some longer shorts Alex 😂. Great advice tho.

[Blobbis]

I did this once on a customer and made the made the last one really expensive and he still chose it

[KizWhalifa.]

Movie theatres are main culprits of this tactic 😂

[gubuckets]

So what makes the most money. Putting the middle at $6, $7.50, $9, etc?

[Zaflon]

I want to hear your take on car insurance. So many products but most never get used. Insurance is only profitable if it's not used yet everyone pays different prices for it.

[robertbrown]

Rick James “ was a habitual line stepper” lol lol lol

[brokenskies]

movie theatres implement this with their popcorn sizing options i worked at one for years and the medium was so close to the large it made the large look like a steal

[classic]

Typical situation in the cinema, always go for the lowest popcorn bucket. Its usually enough and often even too much

[Fermion]

So this reflects the disparity between true value and perceived value, but underlying all of this is the idea that profit is the only ideal. In a larger context this leads to wealth disparity and inflated pricess just because.
After a certain point more mindful economic practices will have to be adopted.
As a whole, society still pays for the profiteering outlook, it is just distributed.

[DanishMoazzam]

He’s right. I buy large almost each time 😂

[DanielWeber-bv]

starbucks does this with their drink sizes. the difference between their grande (medium) and their venti (large), is 30 cents

[-AsL-]

Divide price by units for each option and compare

[garyfaris]

This explains movie theater popcorn and soda prices.