00:00So, it allows you to do a lot more So, it allows you to do a lot more interesting things with customer interesting things with customer interesting things with customer acquisition. It's a totally different acquisition. It's a totally different acquisition. It's a totally different game than I'm used to. Those are the game than I'm used to. Those are the game than I'm used to. Those are the businesses I get into, like the businesses I get into, like the businesses I get into, like the businesses that could just grow really businesses that could just grow really businesses that could just grow really quickly and throw off a lot of cash. It quickly and throw off a lot of cash. It quickly and throw off a lot of cash. It does feel like uh maybe this was a does feel like uh maybe this was a does feel like uh maybe this was a little bit of a fad and it has already little bit of a fad and it has already little bit of a fad and it has already peaked. Said acquisition anonymous. peaked. Said acquisition anonymous. peaked. Said acquisition anonymous. Hello, another episode of Acquisition Hello, another episode of Acquisition Hello, another episode of Acquisition Anonymous. Well, we don't have 100% Anonymous. Well, we don't have 100% Anonymous. Well, we don't have 100% beard anymore. And thumbs down on just beard anymore. And thumbs down on just beard anymore. And thumbs down on just the plus inventory line. the plus inventory line. the plus inventory line. Hey everybody, welcome to Acquisitions Hey everybody, welcome to Acquisitions Hey everybody, welcome to Acquisitions Anonymous. It is Monday, I think. No, Anonymous. It is Monday, I think. No, Anonymous. It is Monday, I think. No, it's Tuesday and we're recording this it's Tuesday and we're recording this it's Tuesday and we're recording this episode. Uh I have my background is episode. Uh I have my background is episode. Uh I have my background is orange and red because the stock market orange and red because the stock market orange and red because the stock market is going horribly today. Uh but we found is going horribly today. Uh but we found is going horribly today. Uh but we found a deal that's super interesting and is a deal that's super interesting and is a deal that's super interesting and is maybe affected by the all the tariff maybe affected by the all the tariff maybe affected by the all the tariff drama. So, I thought it was perfect and drama. So, I thought it was perfect and drama. So, I thought it was perfect and we dug into it. So, Heather and myself, we dug into it. So, Heather and myself, we dug into it. So, Heather and myself, Michael and Bill were here and we had a Michael and Bill were here and we had a Michael and Bill were here and we had a great time. Lots of fun talking about great time. Lots of fun talking about great time. Lots of fun talking about this deal. Dig in. and see what you this deal. Dig in. and see what you this deal. Dig in. and see what you think. It is a sauna business and it
01:00think. It is a sauna business and it think. It is a sauna business and it could be good, could be bad, but uh we could be good, could be bad, but uh we could be good, could be bad, but uh we had a lot to say about it. So check it had a lot to say about it. So check it had a lot to say about it. So check it out. Here's the episode. Hey everyone, out. Here's the episode. Hey everyone, out. Here's the episode. Hey everyone, it's Bill and I want to tell you about it's Bill and I want to tell you about it's Bill and I want to tell you about maybe the most exciting sponsor we've maybe the most exciting sponsor we've maybe the most exciting sponsor we've had in a long time on the pod. It's had in a long time on the pod. It's had in a long time on the pod. It's called Capital Pad and it is the thing called Capital Pad and it is the thing called Capital Pad and it is the thing that I wish existed when I started my that I wish existed when I started my that I wish existed when I started my journey of operating and investing in journey of operating and investing in journey of operating and investing in small businesses. So, Capitalpad is a small businesses. So, Capitalpad is a small businesses. So, Capitalpad is a marketplace for acquisition marketplace for acquisition marketplace for acquisition entrepreneurs, that is people who want entrepreneurs, that is people who want entrepreneurs, that is people who want to buy a business and need capital to to buy a business and need capital to to buy a business and need capital to list their deals and solicit capital list their deals and solicit capital list their deals and solicit capital from other people who want to invest in from other people who want to invest in from other people who want to invest in acquisition deals. So, if you want to acquisition deals. So, if you want to acquisition deals. So, if you want to back somebody buying a small business, back somebody buying a small business, back somebody buying a small business, Capital Pad is the place to do it. And Capital Pad is the place to do it. And Capital Pad is the place to do it. And if you want to buy a business and need if you want to buy a business and need if you want to buy a business and need capital, you can go on Capital Pad to be capital, you can go on Capital Pad to be capital, you can go on Capital Pad to be introduced to investors. Uh, so the introduced to investors. Uh, so the introduced to investors. Uh, so the really great thing too from the investor really great thing too from the investor really great thing too from the investor side is that Capital Pad takes care of side is that Capital Pad takes care of side is that Capital Pad takes care of all of the details that can get hairy all of the details that can get hairy all of the details that can get hairy with small business acquisitions. They with small business acquisitions. They with small business acquisitions. They handle standardized terms, standardized
02:00handle standardized terms, standardized handle standardized terms, standardized governance, standardized distributions governance, standardized distributions governance, standardized distributions all upfront in black and white. all upfront in black and white. all upfront in black and white. Basically, Capital Pad Basically, Capital Pad Basically, Capital Pad professionalizes investing in small professionalizes investing in small professionalizes investing in small businesses. Uh, and the returns can be businesses. Uh, and the returns can be businesses. Uh, and the returns can be really, really good. I'm so stoked they really, really good. I'm so stoked they really, really good. I'm so stoked they exist. It's founded by my friend Travis, exist. It's founded by my friend Travis, exist. It's founded by my friend Travis, uh, who is a phenomenal entrepreneur in uh, who is a phenomenal entrepreneur in uh, who is a phenomenal entrepreneur in his own right. Uh, so if this sounds his own right. Uh, so if this sounds his own right. Uh, so if this sounds like something appealing to you, if you like something appealing to you, if you like something appealing to you, if you want to buy a small business and need want to buy a small business and need want to buy a small business and need capital or if you want to invest in capital or if you want to invest in capital or if you want to invest in small businesses, go check out small businesses, go check out small businesses, go check out capitalpad.com and tell them that capitalpad.com and tell them that capitalpad.com and tell them that acquisitions anonymous sent you. acquisitions anonymous sent you. acquisitions anonymous sent you. Heather, I put my uh background as Heather, I put my uh background as Heather, I put my uh background as bright red today. Would you like to know bright red today. Would you like to know bright red today. Would you like to know why? It looks kind of scary, but yes. why? It looks kind of scary, but yes. why? It looks kind of scary, but yes. Tell tell us why. The market is doing Tell tell us why. The market is doing Tell tell us why. The market is doing terrible. Nobody likes these market. terrible. Nobody likes these market. terrible. Nobody likes these market. Yeah. Oh, mine's green. So, I'm more Yeah. Oh, mine's green. So, I'm more Yeah. Oh, mine's green. So, I'm more optimistic. Look at that. So, I'm optimistic. Look at that. So, I'm optimistic. Look at that. So, I'm actually thinking it'll be okay. And actually thinking it'll be okay. And actually thinking it'll be okay. And you're you're you're worried. It's the you're you're you're worried. It's the you're you're you're worried. It's the difference between public markets and difference between public markets and difference between public markets and private markets. I would say that's private markets. I would say that's private markets. I would say that's probably how it's gone. Maybe that's it. probably how it's gone. Maybe that's it. probably how it's gone. Maybe that's it. That's true. Um, you know, I went last That's true. Um, you know, I went last That's true. Um, you know, I went last night to the uh Final Four game. Oh,
03:00night to the uh Final Four game. Oh, night to the uh Final Four game. Oh, fun. Yeah. I sat in section 317, by the fun. Yeah. I sat in section 317, by the fun. Yeah. I sat in section 317, by the way, not near the court. Oh, okay. Well, way, not near the court. Oh, okay. Well, way, not near the court. Oh, okay. Well, you got there. Who cares? Uh, the dude you got there. Who cares? Uh, the dude you got there. Who cares? Uh, the dude next to me was so big. He had trouble next to me was so big. He had trouble next to me was so big. He had trouble getting up the 47 flights of stairs it getting up the 47 flights of stairs it getting up the 47 flights of stairs it takes to get to section 317, but he was takes to get to section 317, but he was takes to get to section 317, but he was big but smarter than me cuz he brought big but smarter than me cuz he brought big but smarter than me cuz he brought binoculars. binoculars. binoculars. Ah, he thought ahead. So, you were Ah, he thought ahead. So, you were Ah, he thought ahead. So, you were really in the nosebleleeds. really in the nosebleleeds. really in the nosebleleeds. Yeah, there there are some there are Yeah, there there are some there are Yeah, there there are some there are some people that were further up, but some people that were further up, but some people that were further up, but not that many. I sat in a section like not that many. I sat in a section like not that many. I sat in a section like that at Sofi Stadium about a year ago. that at Sofi Stadium about a year ago. that at Sofi Stadium about a year ago. Somebody gave us tickets and I vowed I Somebody gave us tickets and I vowed I Somebody gave us tickets and I vowed I wouldn't do it again. Honestly, it made wouldn't do it again. Honestly, it made wouldn't do it again. Honestly, it made me a little like afraid of heights. It me a little like afraid of heights. It me a little like afraid of heights. It was so high up there. This and the was so high up there. This and the was so high up there. This and the stairs got really short and anyway, it stairs got really short and anyway, it stairs got really short and anyway, it was kind of scary. Isn't SoFi the was kind of scary. Isn't SoFi the was kind of scary. Isn't SoFi the largest stadium in uh the United States largest stadium in uh the United States largest stadium in uh the United States that's not air conditioned? That's what that's not air conditioned? That's what that's not air conditioned? That's what I read somewhere. Uh that could be true I read somewhere. Uh that could be true I read somewhere. Uh that could be true because it is kind of open air, you
04:00because it is kind of open air, you because it is kind of open air, you know? I mean, it's it's got it's not know? I mean, it's it's got it's not know? I mean, it's it's got it's not completely sealed off and where it is completely sealed off and where it is completely sealed off and where it is doesn't really get that hot typically. doesn't really get that hot typically. doesn't really get that hot typically. So, I can see why it might not have air So, I can see why it might not have air So, I can see why it might not have air conditioning. It's an Engleside, right? conditioning. It's an Engleside, right? conditioning. It's an Engleside, right? Englewood. You're close. Englewood. Englewood. You're close. Englewood. Englewood. You're close. Englewood. Yep. It is near the When you fly into Yep. It is near the When you fly into Yep. It is near the When you fly into LAX, you almost always fly over it. And LAX, you almost always fly over it. And LAX, you almost always fly over it. And that's an interesting story as to why it that's an interesting story as to why it that's an interesting story as to why it ended up going so much over budget. It ended up going so much over budget. It ended up going so much over budget. It was so expensive because at some point was so expensive because at some point was so expensive because at some point they realized they had to dig down. They they realized they had to dig down. They they realized they had to dig down. They could not build it up on the dirt uh at could not build it up on the dirt uh at could not build it up on the dirt uh at the height that it was going to be the height that it was going to be the height that it was going to be because it would be too high for the air because it would be too high for the air because it would be too high for the air traffic. And so they had to dig it down. traffic. And so they had to dig it down. traffic. And so they had to dig it down. So when you go into the stadium, you're So when you go into the stadium, you're So when you go into the stadium, you're kind of entering at at the middle level kind of entering at at the middle level kind of entering at at the middle level and you look down and that is, you know, and you look down and that is, you know, and you look down and that is, you know, you look down at the field. It's kind of you look down at the field. It's kind of you look down at the field. It's kind of kind of cool. Most people don't realize kind of cool. Most people don't realize kind of cool. Most people don't realize uh how how often buildings have to go uh how how often buildings have to go uh how how often buildings have to go through FAA approval, especially if through FAA approval, especially if through FAA approval, especially if you're going to be more than a a couple you're going to be more than a a couple you're going to be more than a a couple stories. So I've done it multiple times. stories. So I've done it multiple times. stories. So I've done it multiple times. So there you go. Yeah. Well, speaking of
05:00So there you go. Yeah. Well, speaking of So there you go. Yeah. Well, speaking of tariffs, tariffs. Uh, I brought a deal tariffs, tariffs. Uh, I brought a deal tariffs, tariffs. Uh, I brought a deal for us to do. Can I Can I pitch you on for us to do. Can I Can I pitch you on for us to do. Can I Can I pitch you on this? Yeah, let's let's see it. All this? Yeah, let's let's see it. All this? Yeah, let's let's see it. All right. It's from Bisby by Cell and it is right. It's from Bisby by Cell and it is right. It's from Bisby by Cell and it is called Project called Project called Project Sizzle. It's the largest independent Sizzle. It's the largest independent Sizzle. It's the largest independent sauna retailer doing $10 million in sauna retailer doing $10 million in sauna retailer doing $10 million in revenue. And they have a picture of a revenue. And they have a picture of a revenue. And they have a picture of a sauna, which looks really nice. That's a sauna, which looks really nice. That's a sauna, which looks really nice. That's a nice looking sauna. It is nice. I want nice looking sauna. It is nice. I want nice looking sauna. It is nice. I want it. it. it. Um, this may be one of those infrared Um, this may be one of those infrared Um, this may be one of those infrared ones. I've Have Have you done an ones. I've Have Have you done an ones. I've Have Have you done an infrared sauna? Oh, yeah. I actually infrared sauna? Oh, yeah. I actually infrared sauna? Oh, yeah. I actually There's one down the street. I pay to go There's one down the street. I pay to go There's one down the street. I pay to go there. I wouldn't mind putting one in my there. I wouldn't mind putting one in my there. I wouldn't mind putting one in my house. That's why I'm kind of excited house. That's why I'm kind of excited house. That's why I'm kind of excited about this deal. I like the product. about this deal. I like the product. about this deal. I like the product. Figured out. Maybe maybe you could buy Figured out. Maybe maybe you could buy Figured out. Maybe maybe you could buy the company and they'll throw in some the company and they'll throw in some the company and they'll throw in some saunas for free. It's kind of like if saunas for free. It's kind of like if saunas for free. It's kind of like if you own a private jet company, you get you own a private jet company, you get you own a private jet company, you get to fly private jets for free. That's to fly private jets for free. That's to fly private jets for free. That's what I Right. That makes sense. All what I Right. That makes sense. All what I Right. That makes sense. All right. So, the asking price of this, right. So, the asking price of this, right. So, the asking price of this, they do 10 million in revenue. say the they do 10 million in revenue. say the they do 10 million in revenue. say the asking price is $5 million, gross asking price is $5 million, gross asking price is $5 million, gross revenue is $10 million and IBIDA is $1
06:00revenue is $10 million and IBIDA is $1 revenue is $10 million and IBIDA is $1 million. So, I'm not an expert in math million. So, I'm not an expert in math million. So, I'm not an expert in math and Bill GPT is not here today, but it and Bill GPT is not here today, but it and Bill GPT is not here today, but it appears they're asking five times IBIDA. appears they're asking five times IBIDA. appears they're asking five times IBIDA. You've selected one that we can actually You've selected one that we can actually You've selected one that we can actually do the math on without Bill, which I do the math on without Bill, which I do the math on without Bill, which I appreciate very much. Usually, Bill has appreciate very much. Usually, Bill has appreciate very much. Usually, Bill has his calculator out, which is awesome. his calculator out, which is awesome. his calculator out, which is awesome. All right. Uh, it was established in All right. Uh, it was established in All right. Uh, it was established in 2017, so that makes it seven years 2017, so that makes it seven years 2017, so that makes it seven years old. Um, all right. Business old. Um, all right. Business old. Um, all right. Business description. There's not much to this description. There's not much to this description. There's not much to this one, but I figured there's so much going one, but I figured there's so much going one, but I figured there's so much going on that affects this one that it would on that affects this one that it would on that affects this one that it would be a good for the episode. It's a high be a good for the episode. It's a high be a good for the episode. It's a high growth, high ticket, dropshipping growth, high ticket, dropshipping growth, high ticket, dropshipping e-commerce business specializing in e-commerce business specializing in e-commerce business specializing in premium home saunas and cold plunges. premium home saunas and cold plunges. premium home saunas and cold plunges. The company's strategic focus on high-v The company's strategic focus on high-v The company's strategic focus on high-v value items has resulted in a loyal value items has resulted in a loyal value items has resulted in a loyal customer base. Management has also customer base. Management has also customer base. Management has also fostered strong relationships with fostered strong relationships with fostered strong relationships with suppliers, ensuring quality assurance suppliers, ensuring quality assurance suppliers, ensuring quality assurance and reliable shipments. Future growth and reliable shipments. Future growth and reliable shipments. Future growth opportunities include leveraging opportunities include leveraging opportunities include leveraging advanced marketing techniques and advanced marketing techniques and advanced marketing techniques and exploring new product categories. exploring new product categories. exploring new product categories. reason for selling your favorite. The reason for selling your favorite. The reason for selling your favorite. The owner has the interest in looking to owner has the interest in looking to owner has the interest in looking to move on to other projects. move on to other projects. move on to other projects. And that's all we know about it. It's
07:00And that's all we know about it. It's And that's all we know about it. It's presented by Serge Capital Advisors, presented by Serge Capital Advisors, presented by Serge Capital Advisors, which which which um when I ask you next, what do these um when I ask you next, what do these um when I ask you next, what do these guys do? Which is my usual first guys do? Which is my usual first guys do? Which is my usual first question. Um I will pull up the Surge question. Um I will pull up the Surge question. Um I will pull up the Surge website and see if maybe there's stuff website and see if maybe there's stuff website and see if maybe there's stuff here that um tells us more. Oh, here's here that um tells us more. Oh, here's here that um tells us more. Oh, here's Bill to save the day on our recording. Bill to save the day on our recording. Bill to save the day on our recording. Oh, hey Bill. Hello. Um, we're doing Oh, hey Bill. Hello. Um, we're doing Oh, hey Bill. Hello. Um, we're doing this. Uh, I'll put it in the chat. We're this. Uh, I'll put it in the chat. We're this. Uh, I'll put it in the chat. We're doing and editors should just edit out doing and editors should just edit out doing and editors should just edit out this part. this part. this part. I couldn't tell if we were recording. I couldn't tell if we were recording. I couldn't tell if we were recording. Oh, we are recording. Oh, hello Oh, we are recording. Oh, hello Oh, we are recording. Oh, hello everyone. Right. I clicked record, everyone. Right. I clicked record, everyone. Right. I clicked record, right? Yeah. You missed all my I I had right? Yeah. You missed all my I I had right? Yeah. You missed all my I I had prepared some bits. I've already done prepared some bits. I've already done prepared some bits. I've already done them all. We're good. The This is the them all. We're good. The This is the them all. We're good. The This is the This is my representation of what's This is my representation of what's This is my representation of what's going on with the stock market today. going on with the stock market today. going on with the stock market today. Yeah. Just all red. It's all red. Good. Yeah. Just all red. It's all red. Good. Yeah. Just all red. It's all red. Good. And Heather's is all like a nice I'm And Heather's is all like a nice I'm And Heather's is all like a nice I'm kind of green a nice bur because she kind of green a nice bur because she kind of green a nice bur because she don't she don't care about the stocks. don't she don't care about the stocks. don't she don't care about the stocks. She's person fine. She's she's holding She's person fine. She's she's holding She's person fine. She's she's holding senior debt. She doesn't care what senior debt. She doesn't care what senior debt. She doesn't care what happens to the equity.
08:00I don't care about stocks. No. Um yeah. I don't care about stocks. No. Um yeah. So we're looking at this Surge Advisors So we're looking at this Surge Advisors So we're looking at this Surge Advisors um listed deal that is a uh high growth um listed deal that is a uh high growth um listed deal that is a uh high growth drop shipping opportunity. Interesting. drop shipping opportunity. Interesting. drop shipping opportunity. Interesting. Of huge things. This is drop shipping of Of huge things. This is drop shipping of Of huge things. This is drop shipping of giant saunas and cold plunges because giant saunas and cold plunges because giant saunas and cold plunges because you don't want to have a sauna without you don't want to have a sauna without you don't want to have a sauna without your cold plunge, right? Got to have your cold plunge, right? Got to have your cold plunge, right? Got to have both. Got to have both or what are you both. Got to have both or what are you both. Got to have both or what are you even doing? You can't even post on even doing? You can't even post on even doing? You can't even post on Instagram about it if you don't have Instagram about it if you don't have Instagram about it if you don't have both. Exactly. The thing that's both. Exactly. The thing that's both. Exactly. The thing that's interesting about this is that it's very interesting about this is that it's very interesting about this is that it's very high ticket. Do we know the average cost high ticket. Do we know the average cost high ticket. Do we know the average cost per transaction here? The average order per transaction here? The average order per transaction here? The average order value? We do not. They did not give us value? We do not. They did not give us value? We do not. They did not give us much. I mean, I would guess it's got to much. I mean, I would guess it's got to much. I mean, I would guess it's got to be five to 10 grand. Yeah. you know, and be five to 10 grand. Yeah. you know, and be five to 10 grand. Yeah. you know, and I'm sure if they're good at their job, I'm sure if they're good at their job, I'm sure if they're good at their job, there's there's upselles for there's there's upselles for there's there's upselles for accessories, for saunas and cold plants accessories, for saunas and cold plants accessories, for saunas and cold plants and stuff that could drive it up even and stuff that could drive it up even and stuff that could drive it up even higher. Uh, and what's really higher. Uh, and what's really higher. Uh, and what's really interesting about ecom niches like that interesting about ecom niches like that interesting about ecom niches like that with the big tickets is two things. One,
09:00with the big tickets is two things. One, with the big tickets is two things. One, you're never going to convert anybody you're never going to convert anybody you're never going to convert anybody straight away from like, oh, I was straight away from like, oh, I was straight away from like, oh, I was scrolling Instagram. I saw an ad for a scrolling Instagram. I saw an ad for a scrolling Instagram. I saw an ad for a sauna or I dropped 10 grand. Okay, back sauna or I dropped 10 grand. Okay, back sauna or I dropped 10 grand. Okay, back to scrolling. Right? It doesn't really to scrolling. Right? It doesn't really to scrolling. Right? It doesn't really happen that way. So you have a much happen that way. So you have a much happen that way. So you have a much longer purchase consideration cycle, but longer purchase consideration cycle, but longer purchase consideration cycle, but at the same time you also have way more at the same time you also have way more at the same time you also have way more room for cost of acquisition for room for cost of acquisition for room for cost of acquisition for advertising, right? Thousands of dollar. advertising, right? Thousands of dollar. advertising, right? Thousands of dollar. You can pay $1,000 to acquire a sale and You can pay $1,000 to acquire a sale and You can pay $1,000 to acquire a sale and still make money. I could never do that still make money. I could never do that still make money. I could never do that selling dog supplements, right? Um so it selling dog supplements, right? Um so it selling dog supplements, right? Um so it allows you to do a lot more interesting allows you to do a lot more interesting allows you to do a lot more interesting things with customer acquisition. It's a things with customer acquisition. It's a things with customer acquisition. It's a totally different game than I'm used to. totally different game than I'm used to. totally different game than I'm used to. what um in your what um in your what um in your experience when at what price point do experience when at what price point do experience when at what price point do you have to go to live direct sales? And you have to go to live direct sales? And you have to go to live direct sales? And I'll just put this as a perspective. You I'll just put this as a perspective. You I'll just put this as a perspective. You know, we just did our conference which know, we just did our conference which know, we just did our conference which turned out really well. Hopefully both turned out really well. Hopefully both turned out really well. Hopefully both of you can make it next year. Um but of you can make it next year. Um but of you can make it next year. Um but it's an $8,500 price point. It was a it's an $8,500 price point. It was a it's an $8,500 price point. It was a really nice conference. Like we went all really nice conference. Like we went all really nice conference. Like we went all out. Like food was topnotch. It was at out. Like food was topnotch. It was at out. Like food was topnotch. It was at Robert Reffords Resort, all this kind of Robert Reffords Resort, all this kind of Robert Reffords Resort, all this kind of stuff. But like I found out later that
10:00stuff. But like I found out later that stuff. But like I found out later that Tai who was like organizing the whole Tai who was like organizing the whole Tai who was like organizing the whole thing, he spoke to like 75% of the thing, he spoke to like 75% of the thing, he spoke to like 75% of the attendees directly. attendees directly. attendees directly. Wow. It it was it was that kind of sale Wow. It it was it was that kind of sale Wow. It it was it was that kind of sale versus say like a $2,000 conference versus say like a $2,000 conference versus say like a $2,000 conference where like I've gone to plenty of those where like I've gone to plenty of those where like I've gone to plenty of those and I just put my credit card in and I and I just put my credit card in and I and I just put my credit card in and I never talked to a person. But 75% of the never talked to a person. But 75% of the never talked to a person. But 75% of the people had a conversation with Tai. It people had a conversation with Tai. It people had a conversation with Tai. It was pretty crazy. So where where's that was pretty crazy. So where where's that was pretty crazy. So where where's that number start in your experience, Bill, number start in your experience, Bill, number start in your experience, Bill, that you have to go to direct sales? that you have to go to direct sales? that you have to go to direct sales? Well, I think it depends a lot on the Well, I think it depends a lot on the Well, I think it depends a lot on the category. So, like a like a conference category. So, like a like a conference category. So, like a like a conference ticket for two grand, like people kind ticket for two grand, like people kind ticket for two grand, like people kind of know what it is. They're going to of know what it is. They're going to of know what it is. They're going to talk to their friends that are going. talk to their friends that are going. talk to their friends that are going. People, oh yeah, I'm going. I'll see you People, oh yeah, I'm going. I'll see you People, oh yeah, I'm going. I'll see you there. You know, I think people probably there. You know, I think people probably there. You know, I think people probably drop a couple thousand dollars on a drop a couple thousand dollars on a drop a couple thousand dollars on a conference ticket because that can be conference ticket because that can be conference ticket because that can be relatively cheap for a conference relatively cheap for a conference relatively cheap for a conference ticket, right? But like for an ticket, right? But like for an ticket, right? But like for an e-commerce product that I'm just going e-commerce product that I'm just going e-commerce product that I'm just going to drop, you know, thousands of dollars to drop, you know, thousands of dollars to drop, you know, thousands of dollars on, our rule of thumb is kind of on, our rule of thumb is kind of on, our rule of thumb is kind of anything over a hundred to 150 bucks, anything over a hundred to 150 bucks, anything over a hundred to 150 bucks, probably over 150 bucks, starts to turn probably over 150 bucks, starts to turn probably over 150 bucks, starts to turn into what I call considered purchase, into what I call considered purchase, into what I call considered purchase, which means it's harder to drive people
11:00which means it's harder to drive people which means it's harder to drive people straight from an ad to like click and straight from an ad to like click and straight from an ad to like click and buy, like impulse. So like over 150, 200 buy, like impulse. So like over 150, 200 buy, like impulse. So like over 150, 200 bucks, impulse gets a little harder. bucks, impulse gets a little harder. bucks, impulse gets a little harder. You've got to do more education. And you You've got to do more education. And you You've got to do more education. And you got to do more retargeting. You know, got to do more retargeting. You know, got to do more retargeting. You know, people might need to see more than one people might need to see more than one people might need to see more than one ad. You might need to do some email. You ad. You might need to do some email. You ad. You might need to do some email. You know, maybe you your funnel is more I'm know, maybe you your funnel is more I'm know, maybe you your funnel is more I'm going to educate you about this. I'm going to educate you about this. I'm going to educate you about this. I'm going to capture your email and I'm going to capture your email and I'm going to capture your email and I'm going to send you a long email series going to send you a long email series going to send you a long email series convincing you to buy it, right? You convincing you to buy it, right? You convincing you to buy it, right? You just got to do more of this kind of just got to do more of this kind of just got to do more of this kind of multi-touch marketing above about 200 multi-touch marketing above about 200 multi-touch marketing above about 200 bucks. Uh but then when you get to bucks. Uh but then when you get to bucks. Uh but then when you get to Michael, you talk about like a Michael, you talk about like a Michael, you talk about like a one-on-one considered sale. I mean, one-on-one considered sale. I mean, one-on-one considered sale. I mean, several thousand dollars in e-commerce several thousand dollars in e-commerce several thousand dollars in e-commerce will definitely drive phone calls. A big will definitely drive phone calls. A big will definitely drive phone calls. A big thing in ecom that drives phone call is thing in ecom that drives phone call is thing in ecom that drives phone call is customizability. And I'm definitely customizability. And I'm definitely customizability. And I'm definitely going to see that here. And dimensions. going to see that here. And dimensions. going to see that here. And dimensions. So like how big is it? Yeah, I know it's So like how big is it? Yeah, I know it's So like how big is it? Yeah, I know it's on the web page, but people are going to on the web page, but people are going to on the web page, but people are going to want to know some dimension you didn't want to know some dimension you didn't want to know some dimension you didn't think about. Is it going to fit in my think about. Is it going to fit in my think about. Is it going to fit in my space? Will it be delivered on a truck space? Will it be delivered on a truck space? Will it be delivered on a truck or on a pallet or can it get through my or on a pallet or can it get through my or on a pallet or can it get through my front door? Can I pay you to set it up? front door? Can I pay you to set it up? front door? Can I pay you to set it up? You know, what wavelength is the
12:00You know, what wavelength is the You know, what wavelength is the infrared? Like you're just going to have infrared? Like you're just going to have infrared? Like you're just going to have all kinds of, you know, considered all kinds of, you know, considered all kinds of, you know, considered purchase questions. So, I would think purchase questions. So, I would think purchase questions. So, I would think operating a phone line for this business operating a phone line for this business operating a phone line for this business would increase your conversion rate would increase your conversion rate would increase your conversion rate considerably. So, you you just reminded considerably. So, you you just reminded considerably. So, you you just reminded me of a story. I invested as an angel in me of a story. I invested as an angel in me of a story. I invested as an angel in a uh online couch company that you could a uh online couch company that you could a uh online couch company that you could buy like couches like digitally and then buy like couches like digitally and then buy like couches like digitally and then they would ship you a couch. And um I they would ship you a couch. And um I they would ship you a couch. And um I got a call from them one day and this is got a call from them one day and this is got a call from them one day and this is like five or six years ago and they're like five or six years ago and they're like five or six years ago and they're like, "Hey, uh do you want a couch?" I'm like, "Hey, uh do you want a couch?" I'm like, "Hey, uh do you want a couch?" I'm like, "I guess so." Like, "How much is like, "I guess so." Like, "How much is like, "I guess so." Like, "How much is it?" They're like, "No, it's free." it?" They're like, "No, it's free." it?" They're like, "No, it's free." because they had sold the couch to a because they had sold the couch to a because they had sold the couch to a lady in Dallas and the lady in Dallas lady in Dallas and the lady in Dallas lady in Dallas and the lady in Dallas ordered a gigantic couch and the movers ordered a gigantic couch and the movers ordered a gigantic couch and the movers were unable to figure out how to get the were unable to figure out how to get the were unable to figure out how to get the couch because she didn't want it to be a couch because she didn't want it to be a couch because she didn't want it to be a sectional. So, it was just like it was sectional. So, it was just like it was sectional. So, it was just like it was 14t long. 14t long. 14t long. So, anyway, that's why if you go into So, anyway, that's why if you go into So, anyway, that's why if you go into that conference room that's right over that conference room that's right over that conference room that's right over there, there's a 14 foot long couch there, there's a 14 foot long couch there, there's a 14 foot long couch because they they gave it to me for
13:00because they they gave it to me for because they they gave it to me for free. They're like, "No, just if you'll free. They're like, "No, just if you'll free. They're like, "No, just if you'll just take it. But we just don't want to just take it. But we just don't want to just take it. But we just don't want to ship it back to California. So, this is ship it back to California. So, this is ship it back to California. So, this is a dumb I have a dumb question because a dumb I have a dumb question because a dumb I have a dumb question because you were talking about what at what you were talking about what at what you were talking about what at what point is the phone call and and and this point is the phone call and and and this point is the phone call and and and this is still e-commerce and you've got to is still e-commerce and you've got to is still e-commerce and you've got to convince somebody. Is this a phone call convince somebody. Is this a phone call convince somebody. Is this a phone call that could become an AI agent phone call that could become an AI agent phone call that could become an AI agent phone call or at least at some point in the funnel? or at least at some point in the funnel? or at least at some point in the funnel? Can that be used for something like Can that be used for something like Can that be used for something like this? So, in theory, yes. However, if this? So, in theory, yes. However, if this? So, in theory, yes. However, if there's a $5,000 conversion on the other there's a $5,000 conversion on the other there's a $5,000 conversion on the other end of that phone call, it's this is end of that phone call, it's this is end of that phone call, it's this is probably not the first phone call I'm probably not the first phone call I'm probably not the first phone call I'm converting to AI, right? I'm probably converting to AI, right? I'm probably converting to AI, right? I'm probably converting my hey, I want to track my converting my hey, I want to track my converting my hey, I want to track my order, you know, hey, I want a refund, order, you know, hey, I want a refund, order, you know, hey, I want a refund, like some of those things, maybe not like some of those things, maybe not like some of those things, maybe not even refund. These are big refunds, but even refund. These are big refunds, but even refund. These are big refunds, but you know, your $30 refund is different you know, your $30 refund is different you know, your $30 refund is different than your $5,000 refund. Um, so I don't than your $5,000 refund. Um, so I don't than your $5,000 refund. Um, so I don't think yet, Heather, I mean, I think this think yet, Heather, I mean, I think this think yet, Heather, I mean, I think this will be one of the last things to go will be one of the last things to go will be one of the last things to go because you can actually justify a human because you can actually justify a human because you can actually justify a human right? There's so there's so many right? There's so there's so many right? There's so there's so many dollars on the other end of the phone. dollars on the other end of the phone. dollars on the other end of the phone. You want it perfect. Not to say maybe
14:00You want it perfect. Not to say maybe You want it perfect. Not to say maybe the AI is going to get better, become a the AI is going to get better, become a the AI is going to get better, become a better salesperson than people at some better salesperson than people at some better salesperson than people at some point. I don't think we're there yet. point. I don't think we're there yet. point. I don't think we're there yet. Um, so maybe, but I wouldn't go there Um, so maybe, but I wouldn't go there Um, so maybe, but I wouldn't go there right away given the stakes. I I was a right away given the stakes. I I was a right away given the stakes. I I was a consumer potentially of this product, so consumer potentially of this product, so consumer potentially of this product, so I was looking into it. I I didn't end up I was looking into it. I I didn't end up I was looking into it. I I didn't end up buying one. I still might uh at some buying one. I still might uh at some buying one. I still might uh at some point. And I guess my experience was point. And I guess my experience was point. And I guess my experience was that the salesperson wasn't really doing that the salesperson wasn't really doing that the salesperson wasn't really doing a great job of telling me what I needed a great job of telling me what I needed a great job of telling me what I needed to hear to pull the trigger on it. It I to hear to pull the trigger on it. It I to hear to pull the trigger on it. It I got more confused than I got, you know, got more confused than I got, you know, got more confused than I got, you know, clarified as to knowing like, yes, I clarified as to knowing like, yes, I clarified as to knowing like, yes, I could buy this and I could put it where could buy this and I could put it where could buy this and I could put it where I want it and it was going to work. I I want it and it was going to work. I I want it and it was going to work. I got actually more confused. And that's got actually more confused. And that's got actually more confused. And that's kind of what made me think about that is kind of what made me think about that is kind of what made me think about that is is there a better way to talk to someone is there a better way to talk to someone is there a better way to talk to someone who's interested because there are a lot who's interested because there are a lot who's interested because there are a lot of questions about buying a product like of questions about buying a product like of questions about buying a product like this. Yeah, I don't know. Maybe uh I this. Yeah, I don't know. Maybe uh I this. Yeah, I don't know. Maybe uh I mean at the very least having a good FAQ mean at the very least having a good FAQ mean at the very least having a good FAQ like fully built out video tours of the like fully built out video tours of the like fully built out video tours of the product like having a really rich sales product like having a really rich sales product like having a really rich sales website will help your conversion rate a website will help your conversion rate a website will help your conversion rate a lot. So what do we think of these lot. So what do we think of these lot. So what do we think of these margins million dollars of ibida on 10
15:00margins million dollars of ibida on 10 margins million dollars of ibida on 10 million of revenue and it's perfectly million of revenue and it's perfectly million of revenue and it's perfectly even 10 million 1 million to the what even 10 million 1 million to the what even 10 million 1 million to the what are the chances? What a are the chances? What a are the chances? What a honestly am a little bit surprised they honestly am a little bit surprised they honestly am a little bit surprised they are this high. Um given that it is drop are this high. Um given that it is drop are this high. Um given that it is drop shipping and given that it is big ticket shipping and given that it is big ticket shipping and given that it is big ticket drop shipping. Uh a lot of times the drop shipping. Uh a lot of times the drop shipping. Uh a lot of times the margins will be really thin because you margins will be really thin because you margins will be really thin because you know if you drop ship a $5,000 sauna do know if you drop ship a $5,000 sauna do know if you drop ship a $5,000 sauna do you need to make 500 bucks on that? You you need to make 500 bucks on that? You you need to make 500 bucks on that? You know maybe $300 is still enough to get know maybe $300 is still enough to get know maybe $300 is still enough to get people excited. So, I'm a little people excited. So, I'm a little people excited. So, I'm a little surprised they're that high. I'm surprised they're that high. I'm surprised they're that high. I'm certainly not, you know, with the fact certainly not, you know, with the fact certainly not, you know, with the fact that they're drop shipping, they don't that they're drop shipping, they don't that they're drop shipping, they don't have any inventory. They don't have any, have any inventory. They don't have any, have any inventory. They don't have any, they never touch it. I would not expect they never touch it. I would not expect they never touch it. I would not expect it to be any higher than this for sure. it to be any higher than this for sure. it to be any higher than this for sure. So, is this a I guess we don't know, but So, is this a I guess we don't know, but So, is this a I guess we don't know, but do they have their own brand or are they do they have their own brand or are they do they have their own brand or are they representing multiple brands and they're representing multiple brands and they're representing multiple brands and they're drop shipping all those brands? It's drop shipping all those brands? It's drop shipping all those brands? It's hard to say, Michael. It It doesn't hard to say, Michael. It It doesn't hard to say, Michael. It It doesn't really say. Premium home sauna. So
16:00really say. Premium home sauna. So really say. Premium home sauna. So whatever it is that they're selling whatever it is that they're selling whatever it is that they're selling something to the higher end uh higher something to the higher end uh higher something to the higher end uh higher price point and and cold plunges it price point and and cold plunges it price point and and cold plunges it feels like it feels like these are even feels like it feels like these are even feels like it feels like these are even though I want one it feels like a fad though I want one it feels like a fad though I want one it feels like a fad product too a little bit you know that product too a little bit you know that product too a little bit you know that there's sort of a a peak of when these there's sort of a a peak of when these there's sort of a a peak of when these things get popular and then maybe it things get popular and then maybe it things get popular and then maybe it sort of tails off a little bit as a sort of tails off a little bit as a sort of tails off a little bit as a health benefit. I don't know. What do health benefit. I don't know. What do health benefit. I don't know. What do you guys think? I don't know. I mean I'd you guys think? I don't know. I mean I'd you guys think? I don't know. I mean I'd love to see the trends on that. I mean, love to see the trends on that. I mean, love to see the trends on that. I mean, I it does seem like sauna and cold punch I it does seem like sauna and cold punch I it does seem like sauna and cold punch has been a trend now for a while, but has been a trend now for a while, but has been a trend now for a while, but how long is a thing a trend and then how long is a thing a trend and then how long is a thing a trend and then it's just around, right? When when's it it's just around, right? When when's it it's just around, right? When when's it not a fad, it's a trend? I guess a fad not a fad, it's a trend? I guess a fad not a fad, it's a trend? I guess a fad is bad, a trend is good, right? So, when is bad, a trend is good, right? So, when is bad, a trend is good, right? So, when does it graduate from being a fad to a does it graduate from being a fad to a does it graduate from being a fad to a trend? I don't know. I need to see some trend? I don't know. I need to see some trend? I don't know. I need to see some data. Are you ready to take the leap data. Are you ready to take the leap data. Are you ready to take the leap into business ownership, but you don't into business ownership, but you don't into business ownership, but you don't know where to start? Well, look no know where to start? Well, look no know where to start? Well, look no further than Acquisition Lab. The further than Acquisition Lab. The further than Acquisition Lab. The premier resource for entrepreneurs premier resource for entrepreneurs premier resource for entrepreneurs seeking to buy their dream business. seeking to buy their dream business. seeking to buy their dream business. Founded by Harvard MBA and acquisition Founded by Harvard MBA and acquisition Founded by Harvard MBA and acquisition expert Walker Dyel, the lab is your fast expert Walker Dyel, the lab is your fast expert Walker Dyel, the lab is your fast track to success in the search,
17:00track to success in the search, track to success in the search, diligence, and acquisition process. With diligence, and acquisition process. With diligence, and acquisition process. With hands-on support, world-class resources, hands-on support, world-class resources, hands-on support, world-class resources, and a community of like-minded and a community of like-minded and a community of like-minded entrepreneurs, Acquisition Lab gives you entrepreneurs, Acquisition Lab gives you entrepreneurs, Acquisition Lab gives you the tools and confidence to navigate the tools and confidence to navigate the tools and confidence to navigate every step of the journey. And we're every step of the journey. And we're every step of the journey. And we're proud to call Walker and Chelsea, the proud to call Walker and Chelsea, the proud to call Walker and Chelsea, the lab's director, longtime friends of the lab's director, longtime friends of the lab's director, longtime friends of the podcast. They're passionate about podcast. They're passionate about podcast. They're passionate about helping entrepreneurs like you take the helping entrepreneurs like you take the helping entrepreneurs like you take the next big step. So don't wait to make next big step. So don't wait to make next big step. So don't wait to make your business ownership dream a reality. your business ownership dream a reality. your business ownership dream a reality. Visit acquisitionlab.com today to learn Visit acquisitionlab.com today to learn Visit acquisitionlab.com today to learn more and schedule your free more and schedule your free more and schedule your free consultation. And when you do, be sure consultation. And when you do, be sure consultation. And when you do, be sure to tell them the Acquisitions Anonymous to tell them the Acquisitions Anonymous to tell them the Acquisitions Anonymous podcast sent you. I don't know, but I've podcast sent you. I don't know, but I've podcast sent you. I don't know, but I've enjoying there's a parody account on on enjoying there's a parody account on on enjoying there's a parody account on on X that uh talks about spending time in X that uh talks about spending time in X that uh talks about spending time in saunas with billionaires and and signing saunas with billionaires and and signing saunas with billionaires and and signing lots of LOIs and it's very funny. lots of LOIs and it's very funny. lots of LOIs and it's very funny. Oh, is that Chase down leads? Yes, Oh, is that Chase down leads? Yes, Oh, is that Chase down leads? Yes, Chase. Yes. So funny. Well, obviously Chase. Yes. So funny. Well, obviously Chase. Yes. So funny. Well, obviously that's a parody account, but that's from that's a parody account, but that's from that's a parody account, but that's from our our buddy um Charlie. Yes. So, our our buddy um Charlie. Yes. So, our our buddy um Charlie. Yes. So, right. Yeah. He's uh he works for um right. Yeah. He's uh he works for um right. Yeah. He's uh he works for um Xavier and those guys doing content, and Xavier and those guys doing content, and Xavier and those guys doing content, and this is his hobby is to run parody
18:00this is his hobby is to run parody this is his hobby is to run parody accounts. And he's so talented. He's accounts. And he's so talented. He's accounts. And he's so talented. He's very good at he's so talented at uh as very good at he's so talented at uh as very good at he's so talented at uh as posting on the internet. Nice. Uh so so posting on the internet. Nice. Uh so so posting on the internet. Nice. Uh so so Bill, what would make this a good Bill, what would make this a good Bill, what would make this a good business you would want to own? Like business you would want to own? Like business you would want to own? Like under what conditions this is a business under what conditions this is a business under what conditions this is a business you want to own? Oh boy. Not a ton. you want to own? Oh boy. Not a ton. you want to own? Oh boy. Not a ton. Yeah. Not a ton. I mean this is just Yeah. Not a ton. I mean this is just Yeah. Not a ton. I mean this is just it's drop shipping. And I just hate drop it's drop shipping. And I just hate drop it's drop shipping. And I just hate drop shipping so much because you have so shipping so much because you have so shipping so much because you have so little moat. Um because your drop little moat. Um because your drop little moat. Um because your drop shipper, whoever's making the sauna, if shipper, whoever's making the sauna, if shipper, whoever's making the sauna, if I call him tomorrow and go, I want to I call him tomorrow and go, I want to I call him tomorrow and go, I want to drop ship your sauna, he'll go, great, drop ship your sauna, he'll go, great, drop ship your sauna, he'll go, great, have at it. You're in business. And then have at it. You're in business. And then have at it. You're in business. And then if I'm a better marketer than you, we're if I'm a better marketer than you, we're if I'm a better marketer than you, we're selling the same product and even if selling the same product and even if selling the same product and even if it's map controlled and we're selling at it's map controlled and we're selling at it's map controlled and we're selling at the same price, which good luck the same price, which good luck the same price, which good luck enforcing that. But even if it is well enforcing that. But even if it is well enforcing that. But even if it is well enforced now, you got to be the best enforced now, you got to be the best enforced now, you got to be the best marketer of these things. It just marketer of these things. It just marketer of these things. It just doesn't feel like a ton of moat. And doesn't feel like a ton of moat. And doesn't feel like a ton of moat. And also, of course, your supplier could also, of course, your supplier could also, of course, your supplier could evaporate at any point or change your evaporate at any point or change your evaporate at any point or change your deal at any point or it's it's a tough deal at any point or it's it's a tough deal at any point or it's it's a tough business to buy. It can be a great business to buy. It can be a great business to buy. It can be a great business to own or to build, to hustle
19:00business to own or to build, to hustle business to own or to build, to hustle into. Um, it's just very scary to buy into. Um, it's just very scary to buy into. Um, it's just very scary to buy with debt because there's not a ton of with debt because there's not a ton of with debt because there's not a ton of moat. Um, at the other on the other side moat. Um, at the other on the other side moat. Um, at the other on the other side of it though, I like drop shipping in of it though, I like drop shipping in of it though, I like drop shipping in niches like these more than I like it in niches like these more than I like it in niches like these more than I like it in what I'll call kind of smaller ticket what I'll call kind of smaller ticket what I'll call kind of smaller ticket stuff. Like if if you're drop shipping stuff. Like if if you're drop shipping stuff. Like if if you're drop shipping bath mats or towels or pillows or bath mats or towels or pillows or bath mats or towels or pillows or whatever, like that's even worse because whatever, like that's even worse because whatever, like that's even worse because there's going to be it's going to be a there's going to be it's going to be a there's going to be it's going to be a total red ocean. this at least you've total red ocean. this at least you've total red ocean. this at least you've got to be it's a higher bar to market got to be it's a higher bar to market got to be it's a higher bar to market one of these and convince somebody to one of these and convince somebody to one of these and convince somebody to buy it on the internet. So like all like buy it on the internet. So like all like buy it on the internet. So like all like the driveby people are not going to be the driveby people are not going to be the driveby people are not going to be quite as involved. You know the people quite as involved. You know the people quite as involved. You know the people who took a course on how to start a who took a course on how to start a who took a course on how to start a business on the internet are probably business on the internet are probably business on the internet are probably not going to be as good as you over not going to be as good as you over not going to be as good as you over time. But then the people who are serial time. But then the people who are serial time. But then the people who are serial drop shippers are probably better than drop shippers are probably better than drop shippers are probably better than you and you still got to compete with you and you still got to compete with you and you still got to compete with them. Um so it's for drop shipping it's them. Um so it's for drop shipping it's them. Um so it's for drop shipping it's not terrible but it's still drop not terrible but it's still drop not terrible but it's still drop shipping. So, is there any hope to save shipping. So, is there any hope to save shipping. So, is there any hope to save us kind of with with what the mattress us kind of with with what the mattress us kind of with with what the mattress people do where like they change the people do where like they change the people do where like they change the color on one stitching and there's no,
20:00color on one stitching and there's no, color on one stitching and there's no, you know, there's no comparison you know, there's no comparison you know, there's no comparison shopping. I assume you guys have looked shopping. I assume you guys have looked shopping. I assume you guys have looked into this like maybe. So, yeah, like into this like maybe. So, yeah, like into this like maybe. So, yeah, like maybe you get your own custom paint maybe you get your own custom paint maybe you get your own custom paint color on the sauna or wood tone or color on the sauna or wood tone or color on the sauna or wood tone or something like that. Like maybe, but something like that. Like maybe, but something like that. Like maybe, but ultimately I don't like how big a mode ultimately I don't like how big a mode ultimately I don't like how big a mode is that really. It depends on how is that really. It depends on how is that really. It depends on how customizable these are. Like I have seen customizable these are. Like I have seen customizable these are. Like I have seen some uh like manufacturers of like grill some uh like manufacturers of like grill some uh like manufacturers of like grill stations or patio furniture who will do stations or patio furniture who will do stations or patio furniture who will do like you know people the drop shipper like you know people the drop shipper like you know people the drop shipper will have like a custom configurator on will have like a custom configurator on will have like a custom configurator on their website where it's like I need their website where it's like I need their website where it's like I need this. kind of like building a sectional this. kind of like building a sectional this. kind of like building a sectional couch but more like for like a grill couch but more like for like a grill couch but more like for like a grill station or like a bar outside um patio station or like a bar outside um patio station or like a bar outside um patio furniture and then the the drop the furniture and then the the drop the furniture and then the the drop the manufacturing partner actually builds it manufacturing partner actually builds it manufacturing partner actually builds it to order customized and that starts to to order customized and that starts to to order customized and that starts to feel more like build to order and less feel more like build to order and less feel more like build to order and less like drop ship. I like that better like drop ship. I like that better like drop ship. I like that better because you're actually providing value because you're actually providing value because you're actually providing value and also in that case the manufacturer and also in that case the manufacturer and also in that case the manufacturer is never gonna disintermediate you is never gonna disintermediate you is never gonna disintermediate you because they're more of a factory and because they're more of a factory and because they're more of a factory and less of
21:00less of less of a sling in one widget. Um I'd also be a sling in one widget. Um I'd also be a sling in one widget. Um I'd also be curious or I want to be really sure that curious or I want to be really sure that curious or I want to be really sure that the factory in this case was actually the factory in this case was actually the factory in this case was actually the factory and not another person the factory and not another person the factory and not another person standing between me and the factory. Uh standing between me and the factory. Uh standing between me and the factory. Uh you know making this product available you know making this product available you know making this product available for drop ship. Um, there's just so many for drop ship. Um, there's just so many for drop ship. Um, there's just so many layers of people who could be taking layers of people who could be taking layers of people who could be taking slices here. And to your point, Heather, slices here. And to your point, Heather, slices here. And to your point, Heather, we're not not hearing so much about this we're not not hearing so much about this we're not not hearing so much about this on social media and news articles on social media and news articles on social media and news articles anymore. Like the cold plunge, hot, you anymore. Like the cold plunge, hot, you anymore. Like the cold plunge, hot, you know, hot sauna fad. It feels pretty know, hot sauna fad. It feels pretty know, hot sauna fad. It feels pretty peaked. Yeah, it does. And and you peaked. Yeah, it does. And and you peaked. Yeah, it does. And and you there's so much uh in the longevity there's so much uh in the longevity there's so much uh in the longevity space and the health space that does space and the health space that does space and the health space that does that, you know, it sort of has its peak that, you know, it sort of has its peak that, you know, it sort of has its peak and then it goes away and then something and then it goes away and then something and then it goes away and then something else replaces it. And it does feel like else replaces it. And it does feel like else replaces it. And it does feel like this has peaked, which makes me think this has peaked, which makes me think this has peaked, which makes me think this is why the seller is probably this is why the seller is probably this is why the seller is probably trying to sell now. They're maybe trying to sell now. They're maybe trying to sell now. They're maybe starting to see that things have leveled starting to see that things have leveled starting to see that things have leveled off. And you know, they did start it in off. And you know, they did start it in off. And you know, they did start it in 2017, so they had a good run, I would 2017, so they had a good run, I would 2017, so they had a good run, I would say. Um, but yeah, it does feel like uh
22:00say. Um, but yeah, it does feel like uh say. Um, but yeah, it does feel like uh maybe this was a little bit of a fad and maybe this was a little bit of a fad and maybe this was a little bit of a fad and it has already peaked. it has already peaked. it has already peaked. Uh, Bill, do I care about tariffs? I'm Uh, Bill, do I care about tariffs? I'm Uh, Bill, do I care about tariffs? I'm about to change my background from red about to change my background from red about to change my background from red to orange in reference to a certain to orange in reference to a certain to orange in reference to a certain president. That how do you like that for president. That how do you like that for president. That how do you like that for for like content integration? for like content integration? for like content integration? Um, yes, great point. Absolutely. I Um, yes, great point. Absolutely. I Um, yes, great point. Absolutely. I mean, I got to imagine stuff shipped mean, I got to imagine stuff shipped mean, I got to imagine stuff shipped from Asia here. But I mean, maybe not from Asia here. But I mean, maybe not from Asia here. But I mean, maybe not though. Maybe not because this is so big though. Maybe not because this is so big though. Maybe not because this is so big and heavy. This might be the type of and heavy. This might be the type of and heavy. This might be the type of thing that has to be domestically thing that has to be domestically thing that has to be domestically manufactured because the freight to get manufactured because the freight to get manufactured because the freight to get it here is so expensive. Um, but yeah, it here is so expensive. Um, but yeah, it here is so expensive. Um, but yeah, if this is drop shipping from Asia, yes, if this is drop shipping from Asia, yes, if this is drop shipping from Asia, yes, you have major tariff concerns, assuming you have major tariff concerns, assuming you have major tariff concerns, assuming you can't pass the price through, of you can't pass the price through, of you can't pass the price through, of course. And that would kill the fed course. And that would kill the fed course. And that would kill the fed pretty fast right there if these things pretty fast right there if these things pretty fast right there if these things go from $7,000 to go from $7,000 to go from $7,000 to $14,000. You know, people aren't going $14,000. You know, people aren't going $14,000. You know, people aren't going to be buying them. That would hurt. That to be buying them. That would hurt. That to be buying them. That would hurt. That would hurt. Well, and you're also would hurt. Well, and you're also would hurt. Well, and you're also competing with the used market in this
23:00competing with the used market in this competing with the used market in this stuff, right? Because if the feds stuff, right? Because if the feds stuff, right? Because if the feds ending, there's going to be just like ending, there's going to be just like ending, there's going to be just like the Pelatons. I don't know if you guys the Pelatons. I don't know if you guys the Pelatons. I don't know if you guys have looked at what a used Pelaton sells have looked at what a used Pelaton sells have looked at what a used Pelaton sells for now coat rack. Not a lot. But have for now coat rack. Not a lot. But have for now coat rack. Not a lot. But have you ever gone to your friend's house and you ever gone to your friend's house and you ever gone to your friend's house and they have a Pelaton and then like they have a Pelaton and then like they have a Pelaton and then like they're like, "This is the best thing they're like, "This is the best thing they're like, "This is the best thing ever. I do the Pelaton every day and ever. I do the Pelaton every day and ever. I do the Pelaton every day and then you come back for a dinner party then you come back for a dinner party then you come back for a dinner party like three months later and there's like like three months later and there's like like three months later and there's like clothes hanging off of it." Like that's clothes hanging off of it." Like that's clothes hanging off of it." Like that's the that's what happens every single the that's what happens every single the that's what happens every single time. Hey, I do my Pelaton like three time. Hey, I do my Pelaton like three time. Hey, I do my Pelaton like three times a week. Yeah, I have one. Oh, times a week. Yeah, I have one. Oh, times a week. Yeah, I have one. Oh, Heather, we should race. I didn't know Heather, we should race. I didn't know Heather, we should race. I didn't know you were Peloner. But I'm like I'm on you were Peloner. But I'm like I'm on you were Peloner. But I'm like I'm on and off. Like I get I get into it for a and off. Like I get I get into it for a and off. Like I get I get into it for a while and then I do something else and while and then I do something else and while and then I do something else and so but I still have it and I still pay so but I still have it and I still pay so but I still have it and I still pay for my subscription. So yeah, we got to for my subscription. So yeah, we got to for my subscription. So yeah, we got to do it. And there are no clothes hanging do it. And there are no clothes hanging do it. And there are no clothes hanging on your Pelon. There's nothing. No, it's on your Pelon. There's nothing. No, it's on your Pelon. There's nothing. No, it's it's ready to go. All right. Heather and it's ready to go. All right. Heather and it's ready to go. All right. Heather and I are going to be racing buddies. All I are going to be racing buddies. All I are going to be racing buddies. All right. If you want to race me and right. If you want to race me and right. If you want to race me and Heather on Pelaton, tweet us or X us or Heather on Pelaton, tweet us or X us or Heather on Pelaton, tweet us or X us or whatever with your Pelaton name and whatever with your Pelaton name and whatever with your Pelaton name and we're get acquisitions anonymous Pelaton we're get acquisitions anonymous Pelaton we're get acquisitions anonymous Pelaton race. Oh, let's do it. That'll be fun. race. Oh, let's do it. That'll be fun. race. Oh, let's do it. That'll be fun. Let's do it. All right. See, Michael, Let's do it. All right. See, Michael, Let's do it. All right. See, Michael, there are enthusiasts out there. Michael
24:00there are enthusiasts out there. Michael there are enthusiasts out there. Michael will be jealous. Well, I didn't have a will be jealous. Well, I didn't have a will be jealous. Well, I didn't have a bit I was going to do next, but Heather bit I was going to do next, but Heather bit I was going to do next, but Heather just ruined it. So, thanks, Heather. No. just ruined it. So, thanks, Heather. No. just ruined it. So, thanks, Heather. No. Okay, here's the bit. The bit was I was Okay, here's the bit. The bit was I was Okay, here's the bit. The bit was I was having dinner with a buddy the other having dinner with a buddy the other having dinner with a buddy the other night, and we were talking about Pelaton night, and we were talking about Pelaton night, and we were talking about Pelaton in the future. And he said, he said, in the future. And he said, he said, in the future. And he said, he said, "Where this is going to end up is it's "Where this is going to end up is it's "Where this is going to end up is it's only going to be middle-aged dudes as only going to be middle-aged dudes as only going to be middle-aged dudes as customers for Pelaton when all is said customers for Pelaton when all is said customers for Pelaton when all is said and done." And I was like, "Why?" And he and done." And I was like, "Why?" And he and done." And I was like, "Why?" And he said, said, said, "Well, the uh the ladies that teach the "Well, the uh the ladies that teach the "Well, the uh the ladies that teach the classes are very attractive, so they're classes are very attractive, so they're classes are very attractive, so they're hugely motivating to middle-aged dudes hugely motivating to middle-aged dudes hugely motivating to middle-aged dudes that use it." I was like, "Well, I don't that use it." I was like, "Well, I don't that use it." I was like, "Well, I don't know." So, that is true, but it goes the know." So, that is true, but it goes the know." So, that is true, but it goes the other way also. They have very other way also. They have very other way also. They have very attractive dudes who teach the teach the attractive dudes who teach the teach the attractive dudes who teach the teach the class. Yes. Yeah. And they're funny and class. Yes. Yeah. And they're funny and class. Yes. Yeah. And they're funny and and we pick them by how funny they are. and we pick them by how funny they are. and we pick them by how funny they are. As in addition, they have to be As in addition, they have to be As in addition, they have to be attractive period, but then they're attractive period, but then they're attractive period, but then they're funny, too. So, much like life uh in funny, too. So, much like life uh in funny, too. So, much like life uh in both directions. both directions. both directions. Uh yeah. Well, that's one of the weird Uh yeah. Well, that's one of the weird Uh yeah. Well, that's one of the weird things about like online dating sites. things about like online dating sites. things about like online dating sites. Like if the average like site that a Like if the average like site that a Like if the average like site that a woman chooses for online dating is 61. woman chooses for online dating is 61. woman chooses for online dating is 61. But then when you ask women like what do But then when you ask women like what do But then when you ask women like what do you want in a mate? They'll say like I
25:00you want in a mate? They'll say like I you want in a mate? They'll say like I want somebody who makes me laugh. So want somebody who makes me laugh. So want somebody who makes me laugh. So Heather, could you explain women to us Heather, could you explain women to us Heather, could you explain women to us in less than 30 seconds? in less than 30 seconds? in less than 30 seconds? I'm sorry. We're we're confused about I'm sorry. We're we're confused about I'm sorry. We're we're confused about even explaining ourselves. So that even explaining ourselves. So that even explaining ourselves. So that that'll be too hard. I had to explain to that'll be too hard. I had to explain to that'll be too hard. I had to explain to my 15-year-old the other day. He was my 15-year-old the other day. He was my 15-year-old the other day. He was like, "Well, Dad, if if women and men like, "Well, Dad, if if women and men like, "Well, Dad, if if women and men are equal, why do we have to open the are equal, why do we have to open the are equal, why do we have to open the doors for them?" I was like, "Oh, buddy. doors for them?" I was like, "Oh, buddy. doors for them?" I was like, "Oh, buddy. It's a whole can of worms, buddy. Don't It's a whole can of worms, buddy. Don't It's a whole can of worms, buddy. Don't even go there. Don't even do you have." even go there. Don't even do you have." even go there. Don't even do you have." So, anyway, Michael likes to play a game So, anyway, Michael likes to play a game So, anyway, Michael likes to play a game on this podcast where he walks on the on this podcast where he walks on the on this podcast where he walks on the very edge of being cancelled and then very edge of being cancelled and then very edge of being cancelled and then sometimes he goes too far and we have to sometimes he goes too far and we have to sometimes he goes too far and we have to edit it out. I've been pretty good edit it out. I've been pretty good edit it out. I've been pretty good lately, haven't I? You've been Did I get lately, haven't I? You've been Did I get lately, haven't I? You've been Did I get Wait, did I go too far today? No. No, I Wait, did I go too far today? No. No, I Wait, did I go too far today? No. No, I think you're good. Okay. think you're good. Okay. think you're good. Okay. Except for that part we just had to edit Except for that part we just had to edit Except for that part we just had to edit out. All right. So, uh, we're coming up on All right. So, uh, we're coming up on time here. So, we hate the stoner time here. So, we hate the stoner time here. So, we hate the stoner retailer. I don't I don't hate it. I
26:00retailer. I don't I don't hate it. I retailer. I don't I don't hate it. I just think it's really hard to buy with just think it's really hard to buy with just think it's really hard to buy with debt with one. Like, I mean, this guy's debt with one. Like, I mean, this guy's debt with one. Like, I mean, this guy's making a million bucks a year. Uh, he's making a million bucks a year. Uh, he's making a million bucks a year. Uh, he's been doing it since 2017. I'm not saying been doing it since 2017. I'm not saying been doing it since 2017. I'm not saying this is a bad business. I'm saying I'd this is a bad business. I'm saying I'd this is a bad business. I'm saying I'd be a little scared to buy it with debt. be a little scared to buy it with debt. be a little scared to buy it with debt. I'd want to understand the trend here in I'd want to understand the trend here in I'd want to understand the trend here in the sauna cold plunge. I'd want to the sauna cold plunge. I'd want to the sauna cold plunge. I'd want to understand how dependent I was with my understand how dependent I was with my understand how dependent I was with my specific drop ship partner and if I specific drop ship partner and if I specific drop ship partner and if I could find another one uh if they if the could find another one uh if they if the could find another one uh if they if the existing guys bailed on me. I'd also existing guys bailed on me. I'd also existing guys bailed on me. I'd also want to understand how many other drop want to understand how many other drop want to understand how many other drop ship partners my manufacturer has and ship partners my manufacturer has and ship partners my manufacturer has and just how red this ocean is. Um and just how red this ocean is. Um and just how red this ocean is. Um and finally, I'd want to understand what finally, I'd want to understand what finally, I'd want to understand what makes this business unique. Like what makes this business unique. Like what makes this business unique. Like what what is the moat that these guys have? what is the moat that these guys have? what is the moat that these guys have? And I'm betting it's that they're good And I'm betting it's that they're good And I'm betting it's that they're good marketers, that they can make good marketers, that they can make good marketers, that they can make good Facebook ads and a good website and good Facebook ads and a good website and good Facebook ads and a good website and good photography and all that and good video photography and all that and good video photography and all that and good video and all that stuff. And I would want to and all that stuff. And I would want to and all that stuff. And I would want to be pretty convinced that that skill be pretty convinced that that skill be pretty convinced that that skill because that's what you're buying. because that's what you're buying. because that's what you're buying. Otherwise, I can call up the sauna Otherwise, I can call up the sauna Otherwise, I can call up the sauna manufacturer and sign up as a drop manufacturer and sign up as a drop manufacturer and sign up as a drop shipper tomorrow. Um, but that skill you
27:00shipper tomorrow. Um, but that skill you shipper tomorrow. Um, but that skill you want to make sure is transferable, that want to make sure is transferable, that want to make sure is transferable, that it's not just the seller who is doing it's not just the seller who is doing it's not just the seller who is doing all the good marketing. You want to make all the good marketing. You want to make all the good marketing. You want to make sure he's got a team and a system and sure he's got a team and a system and sure he's got a team and a system and that's replicable and that you can that's replicable and that you can that's replicable and that you can actually transfer it. You know, whatever actually transfer it. You know, whatever actually transfer it. You know, whatever it is about this business that makes it it is about this business that makes it it is about this business that makes it able to earn a million bucks a year drop able to earn a million bucks a year drop able to earn a million bucks a year drop shipping a commodity, right? They have shipping a commodity, right? They have shipping a commodity, right? They have something that makes moat. You want to something that makes moat. You want to something that makes moat. You want to make sure that's transferable. Yeah. make sure that's transferable. Yeah. make sure that's transferable. Yeah. Heather, what do you think? Oh, we Heather, what do you think? Oh, we Heather, what do you think? Oh, we haven't asked the SBA question for this. haven't asked the SBA question for this. haven't asked the SBA question for this. This would be tough to get an SBA loan. This would be tough to get an SBA loan. This would be tough to get an SBA loan. I mean, I will tell you there's lenders I mean, I will tell you there's lenders I mean, I will tell you there's lenders out there that might not listen to our out there that might not listen to our out there that might not listen to our episode or know all the things that Bill episode or know all the things that Bill episode or know all the things that Bill knows and they might still do it because knows and they might still do it because knows and they might still do it because they see a million dollars of evida, but they see a million dollars of evida, but they see a million dollars of evida, but uh a good underwriter would probably uh a good underwriter would probably uh a good underwriter would probably have a tough time putting too much have a tough time putting too much have a tough time putting too much leverage on something like this for the leverage on something like this for the leverage on something like this for the exact reasons you said. It's drop exact reasons you said. It's drop exact reasons you said. It's drop shipping and there's a lot of risks u shipping and there's a lot of risks u shipping and there's a lot of risks u long term to the cash flow. Maybe long term to the cash flow. Maybe long term to the cash flow. Maybe there's a right buyer out there. It's there's a right buyer out there. It's there's a right buyer out there. It's definitely not me. It's cool business definitely not me. It's cool business definitely not me. It's cool business though. I mean, you can make a lot of though. I mean, you can make a lot of though. I mean, you can make a lot of money doing this. Uh, I mean there those money doing this. Uh, I mean there those money doing this. Uh, I mean there those are the businesses I get into like the
28:00are the businesses I get into like the are the businesses I get into like the businesses that can just grow really businesses that can just grow really businesses that can just grow really quickly and throw off a lot of cash. quickly and throw off a lot of cash. quickly and throw off a lot of cash. Like this is one of those I mean this Like this is one of those I mean this Like this is one of those I mean this person started from nothing just like person started from nothing just like person started from nothing just like running some Facebook ads for saunas and running some Facebook ads for saunas and running some Facebook ads for saunas and taking phone calls and now they're taking phone calls and now they're taking phone calls and now they're making a million bucks a year and making a million bucks a year and making a million bucks a year and they're trying to sell it for 5 million. they're trying to sell it for 5 million. they're trying to sell it for 5 million. Like this is what the American dream is Like this is what the American dream is Like this is what the American dream is about. Still at the drop shipping about. Still at the drop shipping about. Still at the drop shipping American dream is getting harder and American dream is getting harder and American dream is getting harder and harder. But there are different versions harder. But there are different versions harder. But there are different versions of the American dream that are very much of the American dream that are very much of the American dream that are very much alive and well. So you know what this alive and well. So you know what this alive and well. So you know what this this reminds me of? Have you did you this reminds me of? Have you did you this reminds me of? Have you did you ever watch the movie Moneyball, Heather? ever watch the movie Moneyball, Heather? ever watch the movie Moneyball, Heather? No. They have like the Brad Pitt. So, No. They have like the Brad Pitt. So, No. They have like the Brad Pitt. So, there's this scene there's this scene there's this scene there's this scene there's this scene there's this scene where Brad Pitt, who is like the where Brad Pitt, who is like the where Brad Pitt, who is like the protagonist, is having like a rough day, protagonist, is having like a rough day, protagonist, is having like a rough day, right? And he's supposedly come up with right? And he's supposedly come up with right? And he's supposedly come up with this great way to revolutionize baseball this great way to revolutionize baseball this great way to revolutionize baseball by, you know, buying these undervalued by, you know, buying these undervalued by, you know, buying these undervalued oddball players. Doesn't it it turned oddball players. Doesn't it it turned oddball players. Doesn't it it turned out it didn't actually work. It was a out it didn't actually work. It was a out it didn't actually work. It was a good story, though. But one of the good story, though. But one of the good story, though. But one of the things they do is they go in and he's things they do is they go in and he's things they do is they go in and he's having a bad day. So his colleague who's having a bad day. So his colleague who's having a bad day. So his colleague who's a younger guy brings him in and shows a younger guy brings him in and shows a younger guy brings him in and shows him a video of this like overweight kind him a video of this like overweight kind him a video of this like overweight kind of goofy looking minor league player who
29:00of goofy looking minor league player who of goofy looking minor league player who uh is batting and this guy is cuz he's uh is batting and this guy is cuz he's uh is batting and this guy is cuz he's fat like never runs past first base. So, fat like never runs past first base. So, fat like never runs past first base. So, he hits the ball and he starts sprinting he hits the ball and he starts sprinting he hits the ball and he starts sprinting down first base and right as he's down first base and right as he's down first base and right as he's turning around first base, he falls down turning around first base, he falls down turning around first base, he falls down flat on his face and everybody starts flat on his face and everybody starts flat on his face and everybody starts laughing at him. Um, because he was laughing at him. Um, because he was laughing at him. Um, because he was going full steam, full ahead of steam. going full steam, full ahead of steam. going full steam, full ahead of steam. He was going for second base and He was going for second base and He was going for second base and everybody's laughing at him and you see everybody's laughing at him and you see everybody's laughing at him and you see the first baseman reach down and shame the first baseman reach down and shame the first baseman reach down and shame him and go, "Get up, dummy. Like, start him and go, "Get up, dummy. Like, start him and go, "Get up, dummy. Like, start running." And it turns out that the guy running." And it turns out that the guy running." And it turns out that the guy had hit a home run and he didn't know it had hit a home run and he didn't know it had hit a home run and he didn't know it and he had fallen flat on his face and and he had fallen flat on his face and and he had fallen flat on his face and the whole thing. And then Brad Pitt has the whole thing. And then Brad Pitt has the whole thing. And then Brad Pitt has a great line and it's it reminds me of a great line and it's it reminds me of a great line and it's it reminds me of you and me every episode, Bill, when we you and me every episode, Bill, when we you and me every episode, Bill, when we run into a business like this when and run into a business like this when and run into a business like this when and Brad Pitt goes, "How can you not be Brad Pitt goes, "How can you not be Brad Pitt goes, "How can you not be romantic about baseball?" And this is romantic about baseball?" And this is romantic about baseball?" And this is Bill and I have like this every episode Bill and I have like this every episode Bill and I have like this every episode where it's like, "How can you not be where it's like, "How can you not be where it's like, "How can you not be romantic about capitalism? How can you romantic about capitalism? How can you romantic about capitalism? How can you not be romantic about America when not be romantic about America when not be romantic about America when somebody could do this?" I agree, somebody could do this?" I agree, somebody could do this?" I agree, Michael. What a great way to end this Michael. What a great way to end this Michael. What a great way to end this episode. How can you not be romantic
30:00episode. How can you not be romantic episode. How can you not be romantic about America and capitalism? Drop about America and capitalism? Drop about America and capitalism? Drop shipping saunas on the internet. Million shipping saunas on the internet. Million shipping saunas on the internet. Million bucks a year. Let's go. bucks a year. Let's go. bucks a year. Let's go. All right, everybody. We'll see you next All right, everybody. We'll see you next All right, everybody. We'll see you next week. Thanks for being here.