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Gregory Shepard’s Ferrari Situation

Upon listening to the “Billionaire Guilt” podcast hosted by Peter Harrington, special guest Gregory Shepard shared an intriguing story about his ownership of a Ferrari. In 2016, Gregory sold his business, Boss Capital Partners, for $925 million. His very first purchase after acquiring the cash was a $200,000 Ferrari supercar. Greg’s reasoning behind purchasing the vehicle was his old boss, Jim Eubanks, let him drive his Ferrari and told Greg that one day he would have one of his own. It was a feeling of nostalgia for Greg. However, after only 6 months, Greg decided to sell the Ferrari. Greg experienced a feeling of guilt when driving the Ferrari because most other people will never get to feel what he was feeling sitting in the driver's seat. He thought about how $200,000 is enough to completely change somebody's life, provide lots of food, and is practically equivalent to the price of a house. After selling the Ferrari, Greg donated all the funds to charities that benefitted the air, water, land, animals, and humans! Greg said in the interview he didn't want to feel the stimulation of “Those who have more are more and those who have less are less.”

I think Gregory Shepard’s decision to purchase and then resell the Ferrari was a mix between Maslow’s Hierarchy of Needs and Herzberg’s motivating factors. It seems as if Gregory was able to make it to the very top of Maslow’s pyramid of self-actualization. His decision to sell back the Ferreri was a result of self-actualization when he realized he didn’t want to flex his money for personal gain but rather he would prefer to put it to good societal use. At the time of purchasing the Ferrari, Gregory had everything else on the pyramid, he had a wife, lots of money in the bank, a roof over his head, education, and a very strong drive to succeed as well as innovate. Further, in order to have enough cash to purchase the Ferrari in the first place, I believe Gregory was motivated by Herzberg’s two factor theory. He grew up within a poor family in Oakland, California, and was constantly getting bullied in school because he had acute autism. At one point he was living off the land growing his own fruits and vegetables while also upkeeping a chicken farm. As time passed he became a sales worker at a computer learning center, worked as a real estate agent, underwriter, founded a bungee jumping company, started a biotech company, and lastly, started a hosting company. Gregory continued to advance his skills and become more well-rounded as an individual which moved him up Herzberg's chain from maintenance to motivation.

After scouring the internet, I found a compelling related article. Purchases that Americans feel most guilty about are eating out, clothing, and shoes. One in five Americans say they feel guilty when they take a trip to the grocery store with a third of Americans reporting guilt when buying alcoholic drinks; and a fourth say they feel guilty when spending money on their passions. Americans feel so guilty about spending money on themselves that 40% have put off replacing a broken essential home appliance out of guilt. In addition, 85% of Americans say they feel less guilty when there are discounted prices. The magic number is 23% off the retail price. Interestingly enough, 70% of guilt buyers feel less guilty about spending money if it is for somebody other than themselves (“Americans Feel Guilty”).

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Gregory Shepard Success Attributes

Tough Childhood Life/2008 Financial Crisis: Undeniably Gregory had a hard childhood. Immediately after being born, he had nine blood transfusions which lead him to develop asthma. He was also constantly in and out of the hospital until he was fourteen years old. Growing up in Oakland, California he was getting beat up every day at school because he had autism as well as dyslexia and was in special education classes. He tried to join activities such as track, swimming, and the Navy but was denied because of his asthma. His parents were also very poor and relied upon living off the land for food for a few years. Similarly, in 2008, Gregory was forced to lay off over one hundred employees in an effort to save his business. He only kept nine people on payroll and temporarily moved their offices to an old barn. These events allowed Gregory to realize that life will knock you down, but to be successful you need to rise up stronger and have a mentality that never quits. In regards to the 2008 financial crisis, taught Gregory to always have a contingency plan and to pay better attention to the markets rather than ignoring indicators of a significant downturn. Lastly, he was also taught how to handle rejection when he was being treated as an outcast by his peers and was denied playing time on sports teams.

Side Hustles (Mistletoes, Rats, Rubik's Cubes, Snakes): Growing up, Gregory had many side hustles. As a teen, he would climb up trees and known mistletoes to sell outside of grocery stores. In addition, he would make Rubik’s cubes and charge to solve them for children. Further, Greg would stab rattlesnakes in the head, trap them, go to a pet store, and sell it. The pet store would then remove the snake’s fangs/venom and sell it. Greg would make $200 per snake until his mother shut down his operation. He then bought two rats, bred them, and sold the excess to the pet store as food for the rattlesnakes. These experiences showed Greg the rewards of hard work and being different from everybody else. It takes a special person to be comfortable around snakes and rats! It also signified the importance of pivoting, when his mom shut down his snake operation, he went down the ecosystem and entered a similar market. If you own a snake, you will also demand rats.

Support from Wife: During the 2008 Financial Crisis, Gregory and his family were forced to move out of their luxury home into a Santa Cruz moldy, dark, one-bedroom apartment with bunk beds in the living room for his young daughters. Greg had no money saved in the bank as he was putting everything back into his business. He had feelings of worthlessness about why his amazing wife loved him and felt sorry that he was the father of his children. He was also riding an old bike to work. However, along the entire journey, his wife offered lots of support and reassurance that he will be okay. She never complained about moving out and took accepted the punches as they arose. I think this experience taught Greg that money isn't everything. It doesn't buy happiness, it's simply just a piece of paper and ink. What matters is the people around you that drive you to be the best version of yourself. As an outsider looking in, I can confidently say that his wife played a substantial role in Greg’s success and helped keep him on track when he began to lose hope.

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Political Factors Affecting Protein Power Plates

Protein Power Plates would have to abide by the laws and regulations of the U.S. Food and Drug Administration (FDA), the Environmental Protection Agency (EPA), and the U.S. Department of Agriculture (USDA). It was mentioned in the article that Jin-Yi and Olga were considered about reconfiguring all the kitchens to prevent cross-contamination. Similarly, employees would likely require new training to safely handle the new form of meat with the restaurant. Protein Power Plates would want to refrain from mixing natural red meat with plant-based meat. Additionally, Protein Power Plates may want to be careful about who they acquire because the more their business is worth, the more they are going to be taxed. If they acquire V-Burgers but do not bring in sales, they will lose money not only on the acquisition but also as a result of their higher tax bracket. The Internal Revenue Service would closely monitor their financial status as well as cash flow. Many politicians in today’s society are also trying to promote green energy consumption.

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Economic Analysis of Protein Power Plates

If the V-Burgers become a big hit, Protein Power Plates would be forced to increase their menu prices. Not only is it pricey for the consumer but also for Protein Power Plates. Menu costs are the costs that a business incurs when it decides to change its prices. The opposite goes if customers begin to boycott Protein Power Plates, they will be forced to decrease their prices in an attempt to hike demand up again. However, the article stated that nearly 3% of people in the US (23% of millennials) follow a plant-based diet and those numbers have tripled over the last 15 years. The more money people spend eating out, the faster the economy will grow, but if growth occurs too fast our economy will see signs of inflation. Also, if the sustainable foods industry continues to expand, that means Jamie will have to hire more and pay additional employee wages which would cut into his profit margins. However, this will decrease the unemployment rate! As a $90 million revenue business, Protein Power Plates has an ample amount of economic sway.

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Social Factors Affecting of Protein Power Plates

A clear social factor of Protein Power Plates includes the growing awareness around organic and sustainable food. In today’s society, people are attempting to pay close attention to what they put into their bodies and the effect the food is having on the environment around them. Protein Power Plates recognizes this desire by offering sustainable foods such as bison, gluten-free whole grain breads, harvest salads, walnuts, and goat cheese in addition to their famous organic burgers. In addition, Google searches for “vegan food near me” increased by more than 5000% in 2021. Further, Americans are beginning to develop a busy lifestyle which has increased consumer dependence on ready-to-eat food as opposed to home-cooked meals. Mila mentioned that some of her younger friends would prefer “fast casual” spots instead of fancy sit-down restaurants. Lastly, the human population continues to steadily grow which is also going to correlate to a greater demand for food (we humans need to eat)!

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Technological Analysis of Protein Power Plates

At the beginning of the article, it was discussed that Protein Power Plates have had some viral videos on Instagram, TikTok, and Youtube that showed Jamie saying “Let’s meat!” before biting into a burger. Social media has emerged as a powerhouse outlet for marketing, especially to teenagers. This is great news for Protein Power Plates because their primary audiences are Millennials and Gen-Zers. Most importantly, posting a video/photo on social platforms is completely free! Social media is a great platform to reach customers quickly and leave a long-lasting impression. It was also mentioned that during the trial of V-Burgers, customers were tweeting complaints about Protein Power Plates as a brand. Although this is critical information, it is useful to consider when making decisions in the future. Technology can be used to not only bring customers in but to also improve the brand and better conform to market desires.

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Environmental Analysis of Protein Power Plates

Early on in the article, it was stated that livestock accounts for 14.5% to 18% of human-induced greenhouse gas emissions. Similarly, it was later disclosed that far more water is being used to produce beef than to raise any other equivalent source of protein and it takes much more energy to grow feed for the animals that people eat than it does to grow crops. The conversion of forested land to livestock pastures has also taken a hit as of late. Although Protein Power Plates is trying to remain healthy for human consumption they may be harming the environment more than they suspect by offering organic humanely raised red meat. As consumers start to shift towards a cleaner environment, so should the restaurant industry as they select what to put on and what to exclude from their menus. I realize this is not mentioned in the article, but Protein Power Plates should implement a strategy for responsible recycling and waste management of their unused or expired meats.

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Legal Factors Affecting Protein Power Plates

Protein Power Plates claim that they have thirty locations and are operating across ten cities in the United States. Food handling and preparation legislation may vary by state so Protein Power Plate employees should be careful that they are following the correct procedures. It also wouldn't hurt to display how many calories are in each menu item. Additionally, Protein Power Plates should ensure they are maintaining minimum daily wages and checking in on the welfare of their employees. Although not required, a few perks that may go a long way include health insurance, paid time off, retirement benefits, or college debt relief. If any of those benefits are being offered, however, it is legally binding that Protein Power Plates would follow through with payment of those obligations. Similar to political factors, it is vital that food quality and hygiene are taken seriously or else Protein Power Plates can be fined or even worse, forced to shut down. Lastly, Protein Power Plates would need to abide by their contract (1-year, $500,000) with V-Burgers and pay them the agreed-upon amount, no matter how well or poorly the plant-based burgers are performing.

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Good Health and Well-Being Impact After Partnership With V-Burger

Indira Agarwal, V-Burger’s founder, proposed that any doctor will say that too much red meat is not good for you. After all, one 3.5-ounce beef burger contains 22% of your daily saturated fat and 27% of your daily cholesterol. According to Fitday, many veggie burgers contain fewer calories than beef burgers with some veggie burgers containing as few as 70 calories, compared to a beef burger which can exceed 200 calories. In addition, veggie burgers contain no preservatives which contain dangerous nitrates that can cause life-threatening diseases such as brain cancer or leukemia. Further, veggie burgers are high in fiber which is healthy for your colon and heart! Lastly, a known ingredient in veggie burgers is soy which is known to contain phytochemicals that help lower your body’s LDL cholesterol. This cholesterol can clog arteries and block blood flow. The soy in veggie burgers can also help prevent osteoporosis and other bone diseases by aiding your bones to retain calcium (Coleman).

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Responsible Consumption and Production Impact After Partnership With V-Burger

Touching on the case study, it was noted that livestock accounts for 14.5% to 18% of human-induced greenhouse gas emissions. Americans eat 105.2 pounds of red meat annually which is leading us down a collision course with climate catastrophe. In fact, one study discovered that decreasing beef consumption by 5% could reduce CO2 emissions by up to eight million tons a year. Another study found that compared to beef burgers, plant-based burgers were associated with up to 98% less greenhouse gas emissions (“Plant-Based ‘Meat’”). Cows release methane created from fermenting grassy food in their multi-chambered stomachs. With a billion and a half cows on the planet, that equates to about 9% of all global greenhouse gas emissions alone. The CO2 emissions of beef are more than double that of lamb, more than nine times of pork, and more than eleven times of chicken. Similarly, one kilogram of beef requires 700 liters of water compared to just 84 liters for one kilogram of plant-based meat (Hayek & Dutkiewicz). It is conspicuous that a partnership with V-Burger would push Protein Power Plates closer to producing responsibly and limiting their unfavorable environmental impacts.

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Life on Land Impact After Partnership With V-Burger

Indira makes a solid point that the conversion of forested land to livestock pastures has progressively been getting worse which has negatively impacted carbon capture, water quality, as well as biodiversity. She also mentioned that the cost of harvested feed is at least twice that of grazed forage. According to South Dakota State University, if we were to eliminate overgrazed livestock pastures (including cows) we would begin to see decreased percentages of bare grounds, less wind erosion/water runoff, and lower soil temperatures that would slow down the rates of evaporation. The Earth's soil would also gain nutrients and fertility which in turn would increase organic matter and nitrogen levels. Further, there will be less soil compaction as there will be less hoof pressure coming down on the soil (Ehlert & Menendez). If we were to eliminate all livestock land, we would accumulate an additional 1.8 million acres to grow fruits, vegetables, and nuts domestically rather than relying on international imports (Hall & White).

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Protein Power Plates Should Partner with V-Burger

I think Protein Power Plates should partner with V-Burger as V-Burger offers many intriguing benefits and additions to the Protein Power Plates brand. First, they need to consider that the sustainable food market is steadily growing as Google searches have increased extensively and young people are starting to become more conscious of what they put into their bodies. The case study mentioned how Tyson Foods, Nestle, and Smithfield are all experimenting with plant-based meat. Further, large chains such as Burger King and McDonald’s have begun to embrace the movement with their “Impossible Whoppers” and “McPlant” burgers. Successful entrepreneurs do not focus on the way things are but rather on where they are headed in the future. If Jamie continues to wait he is going to lose out on money. Simply because he is receiving backlash from a handful of his customers does not mean he should turn his back on V-Burgers. In comparison, because he doesn’t necessarily care for V-Burgers does not mean his customers won’t either. Jamie is simply not used to the taste of V-Burgers but his customers that have acquired a taste and eat veggie burgers regularly may really like them!

Secondly, I think Jamie is being too quick to criticize the V-Burger. After all, it is proven to be more environmentally friendly which leads me to believe that veggie burgers will become a commonality in the future. Jamie mentioned at the start of the case study that he was hesitant to add ground bison as well as harvest salads, grilled squash, walnuts, and goat cheese but they all turned out to be a success. He will never know if he doesn’t give V-Burgers a legitimate chance. I feel as though a one-year contract for $500,000 is reasonable, especially considering that Protein Power Plates is worth $90 million. It is fair to assume that one veggie patty costs $4 which equates to 125,000 veggie burgers. If Protein Power Plates continues to sell one V-Burger per 50 beef burgers, they would have to sell 6,250,000 beef burgers annually to sell their entire V-Burger stock. This doesn’t sound unrealistic considering they have 30 locations in 10 US cities. If I was Jamie, I would give it a shot. Jamie does not have much to lose and he has been made aware that the plant-based market is growing year-to-year. There is no denying that he will likely need to invest in it at some point, it is better to experiment sooner rather than later! Not to mention, no apparent telltale signs are pointing towards making a loss on this deal! Jamie founded Protein Power Plates on the biases of natural, organic, and locally sourced ingredients, who is to say V-Burgers cannot follow those criteria also?

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Works Cited

“Americans Feel Guilty Spending an Average $277,680 in Their Adult Life Time, According to New Survey Findings Revealed by Slickdeals.” PR Newswire: Press Release Distribution, Targeting, Monitoring and Marketing, 1 May 2019, https://www.prnewswire.com/news-releases/americans-feel-guilty-spending-an-average-277-680-in-their-adult-life-time-according-to-new-survey-findings-revealed-by-slickdeals-300841669.html.

Ehlert, Krista, and Hector Menendez. “The Lasting Effects of Overgrazing on Rangeland Ecosystems.” SDSU Extension, 11 Apr. 2022, https://extension.sdstate.edu/lasting-effects-overgrazing-rangeland-ecosystems.

Coleman, Erin. “The Bald-Faced Truth: Everything You Need to Know about Fighting Hair Loss / Fitness.” Fit Day, https://www.fitday.com/fitness-articles/fitness/the-bald-faced-truth-everything-you-need-to-know-about-fighting-hair-loss.html.

Hall, Mary Beth, and Robin White. “What If We Got Rid of Livestock?” Hoard's Dairyman, 15 July 2018, https://hoards.com/article-23512-what-if-we-got-rid-of-livestock.html#:~:text=Without%20supplements%2C%20the%20diets%20from,fatty%20acids%20and%20arachidonic%20acids.

Hayek, Matthew, and Jan Dutkiewicz. “Yes, Plant-Based Meat Is Better for the Planet.” Vox, 18 Nov. 2021, https://www.vox.com/22787178/beyond-impossible-plant-based-vegetarian-meat-climate-environmental-impact-sustainability.

“Plant-Based 'Meat' 'Healthier and More Sustainable than Animal Products'.” ScienceDaily, 29 July 2022, http://www.sciencedaily.com/releases/2022/07/220729173204.htm.