Green Where You Water It

American Rapper and Singer Russell James Vitale (Russ)

Ownership is Everything

You have to own your own music to become wealthy in the music industry where not very many people can make it. Because they don’t own their own music.

“Man if we can all agree that music is the extension of our soul, it’s the sound of our soul, well then if you sell away the ownership of your music to somebody for money, isn’t that selling your soul in its literal definition?” – Russ @ 4:29

“The money is in owning the music…if there’s no money in music, why do the labels who don’t tour and don’t own publishing make billions of dollars off of owning the music? If there’s no money in music, how are they making money…in music?” – Russ @ 5:29

Drop Your Way Through It

“What I would say to people is, if you’re dealing with hate and you’re an artist, drop your way through it. Keep dropping songs.” – Russ @8:01

Arizona Beverage Company Founder Don Vultaggio

Starts at: 11:02

Don kept his product at $0.99 for decades and never raised the price even with inflation, recessions, COVID, etc. I have to admit that caught my attention. I love that he was able to do that: keep his prices the same while maintaining quality of product.

How did he manage to keep his price at $0.99 for decades?

He owned everything needed to make and supply the product to customers outright and did not have any debt. So there was never any pressure to keep raising the profit margins because he did not answer to stakeholders or the bank.

How did he handle the rising costs of the materials?

In the video he states outright that sales have doubled, but he did not double his staff. He managed to do this because of increased efficiencies in processes and leveraging the modernization of technology and software.

I’m assuming the cost of raw materials to build the product may be negligible in comparison? Cost of freight would have gone up, but he did mention that during rough times in life you just have to tighten your belt—it’s normal. (I love that attitude of acceptance.)

Another strategy he hinted to is possibly investing surplus cash from the business in the market? Then re-investing it back into the business to buy better equipment & technology? Adding question marks because it wasn’t stated outright, but I believe alluded to.

Marketing budget?

I love that the interviewer directly asked about marketing, it was like he was reading my mind. (Plus as an introvert, I marvel at the interviewer’s ability to be so high-energy and friendly all. the. time.)

Don did not spend anything on marketing. A great cost savings. He attributes packing and high quality to the success of the product. I’m going to add the cheaper price as well. All 3 have driven sales for him.

So you can still increase profits while keeping your prices the same despite inflation?

Don stated that his profits have doubled. Assuming because as more and more people discover the drink, sales increase, thereby increasing profit margin despite the increase in cost of raw materials and freight.

No marketing costs, no additional labour, no debt.

Lesson:

If you own things outright and don’t use debt to acquire it, you have more freedom, can come out ahead, all while providing value to others. Maybe Dave Ramsey’s on to something. 😛