Because it does look like a scary industry you guys, you hear the word “airport” and now your brain starts thinking about billion-dollar infrastructure, government contracts, genius engineers, extremely competent pilots, but I'm here to tell you guys, it’s not that scary, it’s just a normal industry with normal people inside it with problems and money to spend, it's like that scary guy that looks super jacked and intimidating, maybe they call him the “russian”, he probably has a bold head, but when you get close to him he’s actually ticklish, he's like the nicest person on earth. And I was actually that guy for a very long time, you guys. When I was working as a nightclub bouncer, I used to wear all black (I still do), and I’d wear, like, a hat. People would tell me, “you look intimidating,” and since I was also almost 6'5", with the beard and everything, yeah I did look intimidating, but if you say something to me, I’m actually super nice, like a teddy bear lol.
So it’s the same thing for the airport industry you guys, nothing crazy, because in the airport industry obviously there are airports, and a lot of these airports are actually super tiny, when I was looking through some of the data, I found this airport in Arkansas, which is a state in the US, and who owns it apparently? Well the city. And who's the person attached to the airport? **The mayor. And what does he have? Well, an ordinary Gmail address, and you can essentially email this guy on a random afternoon like you're emailing your uncle, and he'd probably reply. He’d probably reply by saying something like: “**👍🏻” That's all.
Because a lot of these mayers you guys are essentially sitting on a lot of cash and obviously a lot of problems to fix, because a tiny airport is still an airport, they still have problems, stuff that needs fixing, stuff that need to be rebuilt, and apparently, the most expensive thing they deal with is fixing runways. You know that moment, when you're in the plane and it starts moving but you're still on the ground, and for a few minutes it feels like you're in a car, and then it turns, it stops, the engines go crazy and you get pushed back into your seat, well that whole experience was the plane driving on the road before it starts flying, and it’s called a runway, and those runways crack most of the time. And what happens is apparently in the US, the government gives the airport money to fix those runways, about $3.9 billion a year/yr on average.
So essentially you have this transaction (this is what I found throughout my research)
So i was like “hmm, obviously a lot of these paving companies would want the airport, and only one is gonna win, and there’s gonna be a bunch of losers, which means the losers are probably desperate and buthurt right now, so what we can do since know we know that the airport is literally forced to post publicly that they need a paving company, well what we can do, is we can simply sell the losers (aka the losing paving companies) another airport that’s currently buying, and the paving company becomes our customer, and I’m thinking I’ll charge them somewhere from $8,600 to $9000.
And here’s the rationale behind this pricing:
When I started digging, I found out, that when an airport signs a contract with a paving company, the contract is worth about $1.2 million, and paving companies keep about 11 to 16 cents of every dollar from that contract, this is what nerds call margin: That's $130,000 to $195,000 kept on one airport job. So, if we compare that to $8,600, well the economics make sense, it makes sense to charge that amount, because they’re making a lot of money from one single airport contract, and also add the desperation of them just losing an airport, so you’ll face less resistance when it comes to getting paid upfront, because the offer now becomes quite simple & straightforward which is: “Hey man, you just lost that airport. Here's another airport that's about to buy. Do you want it?"
And you guys can apply this in any industry, because you might be thinking Saad, “OK, I understand, makes sense, we sell the losers exactly what they want, so less resistance overall, how can I replicate this myself, and ideally in any industry?”
Well here’s the golden nugget, and if you use it, you’ll end up with way too many customers in industries you never thought about in your entire life:
Always, ask yourself: what kind of businesses does the government itself give money to? And work backwards, that’s essentially how I build offers, and how I get customers in industries that no one knows about and I can charge whatever I want because there’s basically no competition, so you might as well just steal that!