MJ DeMarco
I followed the science; all I found was money.
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This weekend I watched my wife make homemade vegan cheese.
If you’re not familiar with vegan cheese, it has the same consistency / look of dairy cheese except it is a bit softer. In my opinion, it tastes very similar to real cheese, although I’ve been vegan for 5+ years so perhaps my taste-memory is not as good as it was.
She made smoked Gouda, pepper jack, and mozzarella. Her recipes were about an average 8 ingredients, depending on the type of cheese. The two primary ingredients are organic cashews and water. The other ingredients typically are seasonings such as lime, salt, apple cider vinegar, etc. There is usually also a natural thickener too, like tapioca starch. The recipe also calls for a great mixer, like a Vitamix.
Anyhow, when she was done, we ended up with 3 lbs of cheese.
When I saw the result, I was astonished. Not because it turned out delicious (it did) but my astonishment was because I saw exactly the amount of ingredients required to create 3 lbs of vegan cheese.
Altogether, it was about $2.75 in raw materials.
Now if you’re not familiar with vegan cheese, it’s as expensive, if not more, than dairy cheese. A 7 oz package retails for an average of $7 bucks (6.99). The kind I like is $8 per package, but let’s use $7. For demonstration sake, it comes out at $1 per ounce sells at retail.
3 lbs is 48 ounces. (3 X 16)
So with $2.75 in raw materials (at a RETAIL level) she created $48 in retail value of cheese.
$48 in retail value was magically created from $2.75 in raw materials and a tool.
This is how value is created.
This is how you take separate items, combine them, and come out with a 1,700% return on investment.
This is how entrepreneurs get rich.
Any index funds or investments paying 1,700%, while also giving you a modicum of control while not being subjected to the economic whims of the market? Bank accounts? Stocks? Crypto?
Now obviously there are other matters to deal with, like packaging, insurance, and shelf-life. The shelf-life of homemade plant-based cheese is only a few weeks. So from a commercialized standpoint, there are probably a few other ingredients needed.
However, this example is mathematically conducted at the retail level; we didn’t acquire raw materials at wholesale prices.
Question is, what raw materials could you be combining to create value?
What raw materials can you combine to cause the whole to be 1700% more valuable than the parts?
This is anatomy of value creation. This example also demonstrates the primary story used to create value in The Great Rat Race Escape ... singular raw ingredients/parts combined for a better whole outcome.
Value creation need not be not rocket science, it’s basic math.
If you’re not familiar with vegan cheese, it has the same consistency / look of dairy cheese except it is a bit softer. In my opinion, it tastes very similar to real cheese, although I’ve been vegan for 5+ years so perhaps my taste-memory is not as good as it was.
She made smoked Gouda, pepper jack, and mozzarella. Her recipes were about an average 8 ingredients, depending on the type of cheese. The two primary ingredients are organic cashews and water. The other ingredients typically are seasonings such as lime, salt, apple cider vinegar, etc. There is usually also a natural thickener too, like tapioca starch. The recipe also calls for a great mixer, like a Vitamix.
Anyhow, when she was done, we ended up with 3 lbs of cheese.
When I saw the result, I was astonished. Not because it turned out delicious (it did) but my astonishment was because I saw exactly the amount of ingredients required to create 3 lbs of vegan cheese.
Altogether, it was about $2.75 in raw materials.
Now if you’re not familiar with vegan cheese, it’s as expensive, if not more, than dairy cheese. A 7 oz package retails for an average of $7 bucks (6.99). The kind I like is $8 per package, but let’s use $7. For demonstration sake, it comes out at $1 per ounce sells at retail.
3 lbs is 48 ounces. (3 X 16)
So with $2.75 in raw materials (at a RETAIL level) she created $48 in retail value of cheese.
$48 in retail value was magically created from $2.75 in raw materials and a tool.
This is how value is created.
This is how you take separate items, combine them, and come out with a 1,700% return on investment.
This is how entrepreneurs get rich.
Any index funds or investments paying 1,700%, while also giving you a modicum of control while not being subjected to the economic whims of the market? Bank accounts? Stocks? Crypto?
Now obviously there are other matters to deal with, like packaging, insurance, and shelf-life. The shelf-life of homemade plant-based cheese is only a few weeks. So from a commercialized standpoint, there are probably a few other ingredients needed.
However, this example is mathematically conducted at the retail level; we didn’t acquire raw materials at wholesale prices.
Question is, what raw materials could you be combining to create value?
What raw materials can you combine to cause the whole to be 1700% more valuable than the parts?
This is anatomy of value creation. This example also demonstrates the primary story used to create value in The Great Rat Race Escape ... singular raw ingredients/parts combined for a better whole outcome.
Value creation need not be not rocket science, it’s basic math.
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