Platzmangel im Vor-Ort-Service-Business lösen

0:00Unternehmer/Gast Yes, sir. Hi, >> Alex. Uh, Steve Capo. I sell uh tennis lessons, pickle ball lessons with the brick and morton business in uh Cadam, New Jersey. Yes. A lot of balls. Uh revenue is about $3 million and uh we're three three. >> We're trying to get to 10, but the biggest problem is >> supply. We can't seem to find enough space to satisfy the clients. >> Okay. So, it's a brick and mortar constraint, like a physical constraint. >> Yeah.

0:25>> Um I mean, pickle ball, is it mostly pickle ball that's like blowing it up? No, it's actually mostly tennis. >> Pickle ball's just filling the dead spot. >> Interesting. >> Yeah. >> Cool. >> Pickle ball's not a great margin business for us. >> Noted. >> Yeah. >> Okay. Um, but you have a model. What are the margins on the three? >> About 22%. >> Okay. Um, and is it mostly lessons or is it court time or like how's that split? >> It's mostly all lessons. Court time is kind of dead, too. It's all lessons clinics.

0:52>> Oneonone or is it >> one-on-one and group clinics? >> Okay. Both. Got it. Yeah. >> Um, okay. So I mean you kind of you have I mean you have you have a you have a big strategic decision right now. >> Yeah. >> Um because either you can keep tweaking your model and try and you know expand margins by basically driving price, tweaking offer, improving sales process, but you're maybe that takes you from three to four and you go from 600k to a million or a million two in profit. If that's like the only life goal, then like let's do that. If you're like, I want to build America's next tennis facilities. Is that what you want to do?

1:26>> Yeah, that's what I'm trying to do. >> Okay. So, and this is one location you have >> one >> uh square footage. >> 45,000 square feet. >> Damn. >> Yeah. >> Jeez. >> Z. >> So, that's the constraint. I'm trying to find [laughter] a lot of balls. Alex, >> a lot of balls. >> I'm trying to find spaces like that which are really hard to find. Yeah. >> Big buildings like that. [sighs] >> Hopefully, this is doesn't sound bad. revenue sounds low for 45,000 square feet.

1:54Alex >> I don't know. Or I don't know. Maybe we should, like Ed was saying, I should just charge more. >> Yeah. I mean, that's the that the immediate thing of like how do we go from 600k to, you know, million plus in profit? Yes. That would be like something like if you're supply constrained and you have more demand than you can handle, that would probably make sense. Um, so I would I would look at that and like this would probably take a we'd have to look under the hood and like really do a deeper dive, but basically I would look at square footage, sorry, revenue per square foot based on service category.

2:24Alex >> Okay? >> And I would I'll tell you a story that'll illustrate the point. So um really good friend of mine, Rick Mayo, he was at the launch. He's the guy who owns uh Alloy. Thank you. Uh he owns Alloy uh personal personal training. So they he had one store that did three to four million a year which was a super you know super duper store whatever it was really big for the that gym it was like 8,000 square feet and when he looked at his whole model he had a juice bar he had PT or you know personal training he had semis he had group had a whole bunch of different stuff and he ran really good margins and he was you know always on stages whatever when he decided to start the franchise he looked at all of the different service categories and looked at the one that had the highest revenue per square foot lowest cact to LTV ratio which was semi-privates that was the that was the model that the it three-person model could run on 1,200 square feet could do 5600K topline 50% net margins on average like crushed but very micro model and so he pulled that out and then that was the piece that he started duplicating so the model that you have you might have hidden within your model the real core economic engine I would want to look at all of it and then I'd be like all right well if we can can we find 8,000 square foot you know or or you know 20,000 square foot that would be a little bit easier that we can find those in more states um so we and start expanding cuz we basically just have to nail the model and then we scale …