Co-Founding Honest Tea

In this episode, learn how Barry co-founded multiple successful food and beverage products using real economic principles. Class is in-session: Dive into concepts like declining margins of utility, arbitrage, games of inversion and symmetry, and negotiation tactics like “splitting the pie.” Don’t forget to take notes as Barry explains how these concepts helped him build a successful business that sold for $43 Million. 

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OUTLINE:

• (00:00) - Intro
• (06:46) - The Idea Behind Founding Honest Tea
• (11:17) - The Declining Margin Of Utility
• (15:15) - You Can’t Have Lovers If you Don’t Have Haters
• (17:34) - How To Make “Honest” Products
• (20:00) - Origin Of The Name “Honest Tea”
• (22:09) - Personal Financial Guarantees In Entrepreneurship
• (24:51) - What Does It Mean To “Split The Pie” 
• (25:44) - Selling Honest Tea to Coca Cola
• (28:57) - Never Offer A Deal You Wouldn’t Take Yourself
• (38:38) - What Is “Just Ice Tea”
• (44:27) - What Is The Game Of Arbitrage? 
• (48:04) - The Games of Inversion and Symmetry
• (51:49) - Pitfalls 

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EPISODE LINKS:

• Just Ice Tea: https://eatthechange.com/products/just-ice-tea
• Honest Kids: https://www.honestorganic.com/products/honest-kids
• Real Made Foods: https://realmadefoods.com/
• Eat The Change: https://eatthechange.com/
• Personal Website: https://barrynalebuff.com

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BOOKS BY OUR GUEST:

• Split the Pie: https://www.splitthepiebook.com/
• The Art of Strategy: https://www.amazon.com/Art-Strategy-Theorists-Success-Business/dp/0393337170
• Why Not?: https://www.amazon.com/Everyday-Ingenuity-Solve-Problems-Small/dp/1591391539

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ADDITIONAL RESOURCES: 

• Charlie Munger’s Mental Model of Inversion: https://modelthinkers.com/mental-model/inversion
• Never Split The Difference (Chris Voss): https://www.amazon.com/Never-Split-Difference-Negotiating-Depended/dp/0062407805

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