You're focused on the wrong revenue channel.

0:00My name is Cassie. I have an indoor children's play park. Um I do 1.1 million in revenue. I believe that I should already be at 1.5 but have capacity to be at two with this location. Um we do about 36,000 play visits a year. And that does not include field trips or birthday parties. That's just people coming in to play.

0:26The play is our best seller. We do more than half a million dollars in that and that's always what we've been focused on but it's our lowest value acquisition channel. And so I believe that I need to be switching some focus over to birthday parties because it's a higher value entrance and it also brings in multiple new families to the park in bulk. So I think that's what I need to do.

0:54>> Okay. So when you say So we're thinking like Chuck E. Cheese. >> No. Think like a traditional outside park >> Okay. >> but indoors and on steroids. >> Okay. >> So I don't know gyms and >> Yeah. Yeah, but like traditional imaginative play. So um multiple play structures. It's 20,000 square feet. >> Yeah. Got it. Okay.

1:18Um all right. Are there trampolines? >> Are there No. No. >> curious. >> No, I actually we're separating ourselves from from the trampoline market. We are positioning play >> Yeah. >> not fun. >> So not bounce, play. >> Yeah, exactly. Yes, that's our category is play. >> [laughter] >> Um Okay. So you have the capacity to be at two, you're at 1.1 and you want to do more and most of that will be margin so that's a good thing, right? Um what do you know what LTV to CAC is on either of those channels?

1:51>> Yeah, so our play LTV is $450 for lifetime value. Um Our acquisition is $15. We hardly advertise at all. >> Still. >> Um lots of word of mouth referrals. >> Yeah. >> Um and then for our birthday party >> Yeah, for a birthday party it's about $550. So if I can take those play visits and combine it with with a birthday party, they book a birthday party.

2:19>> as in $4.50? >> No, 450. >> Okay, so $15 >> Okay, hold on. >> $450 average lifetime value if they just play. >> Okay, hold on. So, we have machine number one, right? Which we put in $15, right? >> Mhm. >> And that turns into $450. Machine number two, we put in how much? >> That all of our marketing's just in one. So I would say still 15. I haven't actually separated that out.

2:50>> Okay, but it ends up being $550. >> Yeah, if they just book a party. If I combine those, like they come in to play and then they're like this is awesome, I want to have my birthday party. So they do their birthday party, that's 550 and then they come back and continue to play. >> Uh-huh. These still really close. >> Well, so my lifetime value we are guestimating. We're only in our third year.

3:15>> Okay, but that's I usually just do it on your your one anyways cuz you're not worried about from a CAC perspective. You're not worried about Okay. These still seem really close to me. So, let me ask you the the really important question. >> Which part? >> Why don't we do more? >> Of? >> Either. >> Okay.

3:40So we had been focused on the play passes and memberships as our big but we don't do as many birthday parties as we could and that's like a faster revenue injection. >> Well, it sounds like you just need a sales motion that connects this to this. >> Yes. Yes. Or >> What percentage of people go from here to here? >> I don't know. I don't know that actually.

4:06>> a sales motion that gets people from here to here? >> Um other than like our regular emails that go out after they come into play and >> Has to be in person. >> Mhm. >> So basically like is the parent there the whole time? >> Yes. >> Okay. So we just need to install basically a check-in and check-out process. I'm sure you have some check-in process, but we need to have it to it seeds the sale. >> Okay. >> Right? And so I would every single person who comes in, my first question would be like, "Are you here for a birthday party?" >> Mhm.

4:33>> I know they're not here for a birthday party, but I want them to >> [laughter] >> Okay, that makes sense. Yeah. >> I want them to know that we have birthday parties. >> Okay, got it. >> So we'll say, "Hey, are you here for a birthday party?" They're going to say no. It's like, "Oh, crazy, huh? Oh, what are you here for?" They're like, "Oh, to play." You're like, "Oh, wow. Just on your own? Okay, no friends? Oh, fine. Crazy." Right? >> [laughter] >> Poor you. >> They're alone. >> doesn't know anyone? Uh Ready to be alienated? Right? Right? Okay. [laughter] Uh estranged?

4:59Anyways. So uh we'd have them come in, right? Uh then, you know, get the kid kid all sorted. And then that's when I think the parent sale probably happens in between there. And when the kid comes back and he's exhausted and he's like he's like, "Wasn't this great?" It's like, "Hey, so when when are you guys like when do you guys have your birthdays? What are What are you doing for the major three events that kids have You have birthdays. What else you have? I'm sure there's a lot more." >> Well, for the kids? >> Yeah, anything else besides birthdays? >> Um oh, do we offer?

5:25>> Yeah, what do people do? >> Field trips, birthday parties, summer camps, school holiday camps. >> Great. So >> Memberships. >> Yeah, that's a lot. That's That's stuff. Um so I would ask questions about those things right as they're kind of checking out, getting their shoes, getting all, you know, red cheeks, whatever. Um and I'll be like, "Well, why don't we get you back from today and just get it booked because we book out. So if this was fun, let's just get it on the calendar. >> As an in-person? >> Yeah.

5:52>> Like as they're leaving like >> Like a sale. >> Here's some information about our birthday parties. >> Yeah. Yeah. So, I say this and it like I know every you know, laughing and whatnot, but um when we when we uh acquired the the the teeth whitening chain that we're invested in, it was a business just like yours. The economics were great, super low CAC, um but the one thing is that people were just coming in and getting their teeth whitened and they were like, "Hey, give us a call when you get your teeth whitened again." Uh and so we were like, "What if we sold people plans of teeth whitening and we made sure that everyone came back?"

6:24And that 4x the LTV. And the 4x is a lot on a business. And that's what allows you to really scale. And so right now, you literally are just missing a sales motion >> Okay. >> on the front and back end. >> Okay. >> I don't So, one of the big rules is just write everybody. I I do not try to get the customer to want something different. When you find a front The hardest thing to find is a front end. What's the offer that people will come in the door for?

6:51Once I get the people in the door, I'll fix the rest. But if people are coming in for play, then let them come in for play. Then we'll sell everything else for LTV. So, it's like we have to give them what they want so we can give them what they need. To give them what they need is the sales motion and education so that they buy the next thing. That's what's missing. >> Okay. But you would do that like in-person, not necessarily like paid marketing or >> Well, whatever you're doing right now to get people in the door is what I would do. >> Okay.

7:18>> And then we attach this and then you'll make way more money cuz like if you double LTV, you're at 2 million. And honestly, super doable with what you just said. I really like super doable. So, I would be like if we can do one thing to get to 2 million, why do you five? >> Okay. Okay. I think you. >> Appreciate you. Okay. >> [applause] >> All right. Thank you. If you're are owner and you are not growing as fast as you like, I'd like to give you a free gift. So my team and I put together the 100 million dollar scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it.

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