From selling ACs to becoming the tourism king of Jamaica

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My First Million 47 min 3 speakers 7 chapters transcribed
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What inspired the story of the all-inclusive resort king?

Shaan Puri 0:00
If you're like me, you're going to get inspired by this story. A white dude from Jamaica who built an incredible, you know, multi-billion dollar business and lived life on his own terms. That's the headline.
Sam Parr 0:10
I feel like I can rule the world. I know I could be what I want to. I put my all in it like no days off. On the road, let's travel never.
Shaan Puri 0:18
This is my Billy of the week. So this is a guy who created something called sandals. Now, let me tell you the story. First, we just got to look at this picture because I'll be damned if this doesn't look like a young Sam Parr. Look at this guy. Is this not you? Yeah. This guy's you. Is he actually, he's Jamaican? So he lived in Jamaica. Okay, so here's the story. So his name's Gordon Stewart and he's born in Jamaica, white kid born in Jamaica. His mom calls him Butch because he was chubby. So he becomes known as Butch for the rest of his life, which is amazing. As a young kid, he does all kinds of odd job little hustles. So he's like helping out the fishermen, then he buys a boat. Then he starts making money boating the fishermen around and repairing boats.
Shaan Puri 1:04
And he would skip school altogether. He was like, he's just like, I just want to be on the water. And he goes, he said later, I didn't want to be a businessman. I want to be a fisherman, just a rich fisherman. And that led him into business. So I love this guy. So he's like, along the way, he's living in Jamaica. Obviously, Jamaica is super hot. And he realizes as air conditioning becomes a bigger and bigger thing that air conditioning is going to be huge in the Caribbean. Things take time to diffuse from different places. And so maybe it was normal in the States, but it wasn't as normal in the Caribbean yet. And so he saves up $3,000 and he starts a company called Appliance Traders Limited. And the idea is he's going to import AC from the US, AC units, and he's going to go door to door selling them himself.
Shaan Puri 1:50
And he decides, I'm going to do this B2B. I'm going to convince business owners that they should have AC because for them, it's not just about their own comfort, but like they're going to have more sales. If their store has AC and the other store doesn't, customers are going to want to spend time in their stores. So great idea. Now he's like, how do I differentiate myself? So he tries selling door to door. He makes some progress just hustling and he hires some other island boys to come like help him sell. But he's going up against General Electric, right? So he's going up against like Westinghouse. He's going up against these huge companies that have much bigger sales forces than him. So he's like, he asked himself a better question.
Shaan Puri 2:25
Instead of how do I out-compete them on sales where they're excellent and have more resources, how do I do something they would not dare to do? So he goes, what can the big guy not do? Speed. And what does the big company not care about? Service. So he decides to differentiate his offering. So he says, if you call me, I'll have AC installed within eight hours. And he just starts with that vision, and he works backwards to figure out operations. Like, how could I possibly do that? Well, I guess I'd need boys over here. I need a call dispatcher. I need to prioritize the most recent call, not the oldest call, and deliver this eight-hour service. And then the second thing he says is, look, these ACs, they break.
Shaan Puri 3:04
They're running them all the time. Here's the deal. We will fix all the ACs, no extra charge. Like, if it breaks, we fix it, and we fix it fast, and nobody else is going to offer you this. And because of these two things, speed and service, he dominates the Caribbean market. He takes over Jamaica. He builds a powerhouse. And so out of this, that's his first kind of fortune that he makes. How much did it make? I don't know his net worth at this time, but it's enough where he could go to Montego Bay and buy a rundown hotel that everybody else ignored. And so 1981, he buys this resort called Bay Rock. And at the time, people think he's crazy because tourism is not that popular in Jamaica at the time.

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