HOWZAT

Probably about seventeen years old. I created this closed-loop system where I captured the used pallets at my parents’ mailing company, repaired them, and sold them back to the printing companies. I knew there were other direct-mail companies in the area that probably had the same situation, so I called on them. Some paid me to haul these things off; some gave me the pallets for free.

THE BUSINESS

What was your pitch to get customers?

I knew that when printers bought pallets, they usually bought brand-new ones. So my pitch was, “I can sell you a pallet. It’s not brand-new, but it’s half the price of a new one.” A new pallet might have cost eight dollars, and I’d sell used ones for four dollars. And remember, I had no cost into them except my own labor.

Did you have any employees?

When I first started, I was the only employee for a couple of years. I repaired the pallets, drove the forklift, and drove the truck. Then I hired my first employee. One by one, I kept adding on.

What did your employees do?

They mostly repaired the pallets. For the longest time, I answered the phone, typed the invoices, made the deliveries, and saw the customers. It was a good thing that I made the deliveries myself because I was able to see the customers one-on-one and build long-lasting relationships.

THE PROFIT

Were your profit margins pretty good?

No question. My accountants used to laugh about it. They’d tell some of their other clients, “I’ve got this one client and you’re not going to believe the margins he’s making.” But eventually, people caught on to it, and I decided to start offering a little money for the pallets.

THE GROWTH

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