21 Years Old and Doing $500,000 a Year

0:00All right, now we're going to Luke, 21 years old. All right, Luke. Let's dance. Let's dance, Luke. >> What is Luke? >> Salutations, Luke. Greetings. >> Is this Alex Hormozi? >> You're on the Hormozi hotline. What's the [laughter] business? How much you're making? What's the problem? >> So, this is the Timber Garage. It's a handmade table company here in Ohio.

0:26>> Amazing. >> 500 500k top line, 30% EBITDA. >> Oh, I love this guy. >> Uh we're we're doing uh 10 to 1 um LTV to CAC, so pretty healthy numbers there. >> Great. >> Um but basically, my my question is when we're building super high-end products and you know, manuf- manufacturing them ourselves, oftentimes these are products that people keep in their homes for, you know, 20 30 years. How do you create recurring revenue or, you know, make them buy multiple times?

0:52>> Warranties, warranties, annual maintenance. And then the accessories. >> Okay. >> And gifts. >> I offer a lifetime warranty currently. Should I make that an upsell? >> Correct. And gifts that they can give their friends because their friends are going to have holidays on a regular basis. >> Okay. Can you Could you give me a a quick example of that? >> So, you I'm sure you do wood stuff, right? >> Yes, 100%.

1:18>> some sort of theme that's similar to that that they can give to their friends would be something that I would consider as like the accessories, things that they can get like, "Oh, that that bowl is so cute that you put on top of your coffee table." It's like, "Oh, we can give it as a gift." But I mean, the if I had to do one thing, it would just be uh warranties would be the upsell and maintenance. Those are the two. >> Okay, got it. And so then um this as far as the small gifts, what price point do you come in at that? Do you make it something that's fairly high ticket, like our LOVs right around 5k, or do you make it those small things like a bowl or a cutting board like you just mentioned?

1:46>> I mean, you can still make them expensive. I'd probably be looking at stuff that's like 10 to 20% of the price, but like 90% plus margins. >> Got you. Okay. And then based off of what I'm telling you right now, is there anything else that you see I'm missing as an opportunity? >> No. I mean, I think you just need more, right? You just need to sell more. You need more more more advertising. Yeah, this isn't an advertising thing. If people really happy with it and they get good reviews, this is just a pure Yeah, it's a pure brand and advertising thing. And then the issue that's going to come up next after that is going to be your supply of like how how many of these tables can you make? And at that point you're going to have one decision to make, which is like, do I want to start going high-end and go to 15, you know, 15, 25,000 dollar tables, or do I want to start, you know, machining this so I can sell even more?

2:30>> Got you. Okay. Awesome. That that sounds amazing. I'll absolutely implement that immediately. >> Rock and roll, Luke. Appreciate you. >> Thank you, Alex. >> No, you bet, man. Congrats on the business. Really good. >> Thank you, sir. >> All right. Well, I can't wait to see the tables. >> Thank you. Take care. >> You too. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I just distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're a business owner, I appreciate you and enjoy.