Imagine a marketer saying:

0:00I sell cowboy hats and custom hats. >> Sweet. >> We do around two million in revenue right now. I'd like to be at five. >> What's the price of the hat >> right now? Anywhere from 800 to,200. >> Okay. >> The issue is I can double the paid ads, double the content like you say, but I can't make the hats. >> Okay. So, you're supply constraint. >> Totally. It takes years to take somebody and make them into a master hatmaker and it's a dying trade. I don't feel like recruiters can find hatmakers. Maybe I'm wrong. I don't know.

0:25>> I think they can totally find hatmakers. You think so? I mean, I would just Google hatmaker and then I would call all the business owners. I'm just being mean like this is how I would do it. You have margin, right? >> Like 40 to 45%. >> Yeah, you got margin. That to me is where the really exciting alpha is because if you tell me, okay, there's all these people who are dying on the vine who can barely make ends meet and then I'm over here printing money with the exact same skill set they have. I'll bet you you probably pay them better if they're making thousand hats. >> But I'm in Kentucky. >> Yeah.

0:51>> No one wants to be in Kentucky besides us. [snorts] >> No one wants to be in Kentucky for what you pay them now. That's true. >> You need what? Three more, five more, 10 more. >> I would say like two to three more to get to five to seven. [laughter] >> I know. I know. >> So, if you are supply constrained and you are making money hand over fist >> Mhm. >> you are underpricing your talent. So, it's like how much more would I need to pay somebody in order to get them to be one willing to move to Kentucky and two be willing to go through the training for it? If I can get them to do that, do I still have a good margin? If so, great. You have the margin and you have the pricing power. sees it.