Who Is TraxNYC? | PBD Podcast | 713

TraxNYC's long-standing conflict with the Akai brothers, who were co-owners of the jewelry exchange and allegedly impersonated his brand to sell fraudulent gold, culminated in a public confrontation. This incident, captured on video, went viral, generating over 320 million views for TraxNYC, effectively providing a year's worth of marketing in a single weekend. The host notes the irony that the conflict, while unpleasant, significantly boosted TraxNYC's brand visibility.

The video of the confrontation received 73 million views and was shared 651,000 times (01:08-01:14). TraxNYC states he gained 'a year's worth of marketing in a weekend,' with his Instagram views rising from 100 million in 30 days to 320 million in the trailing 30-day period after the incident (34:23-34:51).

Inspired by Warren Buffett, TraxNYC shifted his business strategy to prioritize profit margins over sales volume. He learned to identify and eliminate unprofitable or problematic products (like easily snapping 10K chains) and raise prices on high-demand, high-margin items. This approach ensures business profitability and avoids unnecessary headaches from customer returns or low-value transactions.

TraxNYC recounts learning from Warren Buffett's acquisition of a failing windmill company: 'You cut down the production of things that are at a loss. Stop selling things that are giving you a headache and just focus on what makes money and increase the price on that... Volume is not business. Profit is business.' (27:26-28:08). He applies this by no longer selling 'super cheap' items that attract 'people that expect the most from the least' (1:15:40-1:15:47).

TraxNYC distinguishes sharply between different client types. He finds 'rap culture' clients, despite being fans, often difficult to deal with due to poor money management, large entourages, and a 'hood mentality' that can lead to being 'duped' or 'siphoned off.' In contrast, athletes and business people are considered ideal clients because they are smart, have money, and conduct straightforward transactions.

TraxNYC states, 'There's nothing worse than the rap culture or the rap client.' (43:34-43:39). He describes rappers as wanting to 'pull up to the shop with 50 extra people. One of them who wants to steal... It's the hood mentality.' (44:11-44:18). Conversely, 'The athletes are great. Business people are the best... You want your product. Good night. Goodbye.' (43:52-44:06).

The jewelry business, particularly in New York's Diamond District, is built on a foundation of trust, originating from its historical Jewish community. High-value transactions, such as exchanging diamonds worth hundreds of thousands of dollars, often occur without formal contracts due to the need for speed and mutual reliance within the community. Breaking this trust leads to ostracization, underscoring its critical role in enabling efficient commerce.

TraxNYC explains, 'The jewelry business is a trust game. That's why it started by a Jewish community in the diamond district.' (49:38-49:44). He describes handing over a $400,000 diamond to a client without a contract, expecting them to return with the money. The 'code is don't steal like a petty thief' (51:42-51:44), enforced by community ostracization (52:37-52:40).

TraxNYC strongly advocates for investing in physical precious metals, particularly gold, as a crucial savings strategy in an unstable economic environment. He highlights gold's significant price appreciation over two decades (from $350/ounce to $4,500/ounce) and warns against keeping money solely in banks, especially given current economic policies and global power shifts.

TraxNYC notes gold was $350/ounce when he started his business 20 years ago and is now $4,500/ounce (1:35:53-1:35:58). He states, 'If you're not saving in precious metals, you're not saving period.' (1:47:43-1:47:47).