Just. Raise. Your. Price.

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.

[jodief]

I think a lot of folks would be happy paying for an on time and on budget guarantee. That's smart.

[ErrorSulake]

We raised most of our prices (ecommerce store) by 20%, next month was a disaster, almost 30% less revenue, the month after we matched the revenue from before raising prices and had more than doubled the gross profit (and more than 10x net profit).
Yes, you'll probably have a cut in revenue at the first moment, but in our case it gave us the "free time" to actually work better on bottlenecks and other flaws, so stay focused and don't fall back

[miraclo]

The same people complaining that everything is getting too expensive are the same people saying businesses should be raising their prices...

[calebgroncki]

Wow that’s smart.

Raise it 20% - give a guarantee for quality of work, if failed to meet, 20% discount.

It’s a win win

If he fails, he’s back to the drawing board but still in business making what he would’ve made normally.

But if succeeds he gains 20% profit.

I would’ve never thought of that, haha. 😅

[minifunkable]

Lower price and have high volume, i choose. Less volatility. Others business are slow atm while ours is up this year, every year for last decade. It depends, if it's competitive business raising prices will have negative affect. Unless you provide the best product/service in your field.

[syasyaishavingfun]

Everyone need to understand - Alex is operating under the assumption that your product is great and valuable. Because he himself never skimp on his products. All his tactics won't work if your product is not as valuable as you think/hope.

[ianidas]

Alex’s business advice will give you a heart attack. Noted

[Moon-Labs]

There is something called the price/cost ratio - simple economics, have prices at a point it does not reduce sales. Although, as he points out there is a 'non cash offering' to also incentivise. Makes sense. Although, people would prefer to buy something and NOT take insurance out....

[jaredj]

Repair business owner here, he’s absolutely correct

[javohirxusanov]

If you make charge $1000 and increase 10% yields to $1100. So if the profit was 900 after increase it’s 1000 so it’s 10%, math is not mathing when you say 10% increase doubled the profit.

[joshuaalufa]

The important part here.
The business owner LISTENED, Executed, Tracked, & Reported Results

[achipinthesugar]

Hang on though. If you don’t come in on budget, you’re going to be charging them 20% less for charging them more. That’s not going to feel like a simple benefit to them.

“I apologise, the project ended up 15% over the budget, so as promised you’re going to pay 80% of 115% of what we quoted.”

[AustrianEconomist]

Gotta be careful or you guys will lose money. If you increase by 20% and then go down by 20% you'll actually end up LOWER than before.

Example - go up 20% from $10 to $12. If you go down by 20%, you're not going down to $10. You're going down to $9.60.

Instead, you want to increase by 25% and then go down by 20%, or increase by 20% and go down by 15%.

[GunsCarsGuitars]

I learned this the hard way in d2d sales

[justinc.]

One of the first lessons I learned about selling was not to sell from my own wallet just because I thought it was expensive. Didn’t mean the customer did.

[bryantbarnhart]

State Farm insurance tried this. You should go look how its turned out for them...

[jamesplayer]

Same guys can’t figure out why materials are so high…That’s because they do to you what you do to everyone..

[Walter]

No one in the construction industry knows the price. It’s all guessing depending the face of the client's 😅

[matthewrichardson]

This guy is “revolutionary” with his business acumen: RAISE PRICES 🤣🤦🏻‍♂️

[lugasalexander]

The beauty of capitalism is u can do something like this if u want! On a broader scale, if everyone did this employees wouldn’t feel as motivated and turnover would be the same (something he cited as a positive). So I think it’s wonderful it worked at Gravity, but I wouldn’t expect the same results if every company adopted this approach.