Either sell extremely expensive to a select few or sell something super cheap to everyone. The middle is where people die.
Alex Hormozi nails a hard truth about pricing: the middle is a graveyard. Brands either win by going premium and exclusive or by going mass and cheap. Anything in between gets crushed.
Why this thinking works
The luxury route lets you charge high margins with low volume.
The low‑cost route wins through scale and ubiquity.
Middle pricing confuses buyers: not cheap enough to be a deal, not premium enough to feel special.
It forces brands to compete on features instead of value or experience.
Examples
Rolex sells few watches but dominates profit share.
Walmart thrives on tiny margins and massive volume.
Tesla started premium, then expanded downward with the Model 3.
JCPenney’s failed revamp tried to skip discounts and land mid‑tier—sales tanked 25%.