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Why the Arizona Iced Tea founder won't raise the price above $1.

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Why the Arizona Iced Tea founder won't raise the price above $1.

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17 segments

0:00

When I was a kid, I worked for a dollar

0:01

an hour. So, I respect the dollar.

0:03

>> Wow.

0:04

>> Consumers who get a good value on a

0:07

beverage or anything

0:08

>> Right.

0:08

>> become loyal consumers. And what we

0:10

don't have to do is advertise and spend

0:12

a lot of money on the things that my

0:14

competitors do a lot of. When I was in

0:16

Italy with a water manufacturer, he

0:18

spends 13% of his gross on advertising.

0:21

And he said, "How much you spend?" I

0:22

said, "Zero." And that's big part of how

0:24

we're able to maintain pricing. We don't

0:26

go on those foolish follies of trying to

0:29

find customers.

Interactive Summary

The speaker explains how respecting the value of money has influenced his business strategy. By offering consumers good value rather than spending heavily on advertising, his company is able to build loyal customers and maintain stable pricing.

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