16: Matt Leavell, CEO of BuyLowWarehouse.com, earned $1 million in their first year and ranked in the Inc 5000 fastest growing companies in the USA in 2022

paris_vega: Welcome to the first customers podcast today, we've got Matt Lavelle, the Co of Bile Warehouse, Dot Com, a company that earned a million dollars in their first year of business, and also ranked in the ink, five thousand fastest growing companies in twenty twenty two, Matt, welcome to the show. matthew_leavell: Man, I'm pleased to be here. Thanks for inviting me paris_vega: Yes, sir. So we've known each other for years, Used to work together many moons ago. Feels like a past lifetime ago. matthew_leavell: For paris_vega: Um, matthew_leavell: sure. paris_vega: So and I know you've been involved with lots of businesses over the years before getting to Bile Warehouse, but let's start off with maybe getting a little bit of your perspective on getting. How do you get those first customers for a business? matthew_leavell: Yeah, good question is always a. There's always a bunch of ideas right And it's like, what what can I do? And you want to make sure that I want to make sure that whatever I do is sustainable. You know, one hit wonders, don't build a business. paris_vega: M. matthew_leavell: When we were getting going. At least in Bilowarehouse, we were in an industry where You had to watch your back. you had to protect yourself. There were a bunch of scammers There still are we trying to do something about it, But there's paris_vega: Yeah, matthew_leavell: a bunch of ammers. I mean horror stories of people wiring somebody ten thousand dollars. And then if they even got a truck load, it would you know maybe it was a truck load of all melted chalk load or something. And paris_vega: Man, matthew_leavell: and you know they've been saving their money for their whole life to take this risk and somebody just screw them over and paris_vega: In ten thousand dollars it would cost something. matthew_leavell: I mean, yeah, I mean truck. in our business we sell truck loads. And so it's gonna a truck loads. going to range. I mean, you could get one down to twenty five hundred bucks, but I mean paris_vega: Still. matthew_leavell: most, paris_vega: yeah, matthew_leavell: which price is going to be eight to fourteen thousand dollars, depending on what you're looking at. So when when we're kind of getting going, the biggest thing to me and what people don't really know what I mean when I say this, but I built my business on selling trust. You know, everybody thought we fell on truck loads, but in reality all we were selling was trust, paris_vega: Yeah, matthew_leavell: and as people started to get to know us and started to understand that we actually did what we said we were going to do, we weren't afraid to kill a sale, because if we learned that it wasn't the right thing for the customer, we weren't afraid to tell them. He like, I really don't think this is good for you. I'd rather not do it. I still have some people that remind me like you talked about. I am from you the first time I called you and then I knew I could trust right and paris_vega: There you go. matthew_leavell: thbuilt a foundation for a long term relationship with the customers that they know that you have their best interest in heart. Because if man, if your customers make money, they're going to come back. And and if you have repeat customers, then you start to have a foundation to build a business on. So I always joke when I say it, but I'm very serious. We built our business selling trust. paris_vega: Awesome. Uh, That lines up with a lot of what we're hearing from different guests on the show Seems like trust is a big part of everybody's. like all the successful businesses, their sales process, and the long term businesses that stay around. So that makes a lot of sense matthew_leavell: Yeah, paris_vega: all matthew_leavell: I mean, paris_vega: right matthew_leavell: if well, cut you off there, but paris_vega: Now. Go matthew_leavell: if paris_vega: ahead matthew_leavell: if you're new, right, what credentials do you have to stand on? paris_vega: Right. matthew_leavell: You know you may, you have your past life, and and the people in your past life may be a different industry or whatever they. They may trust you. They may know you. but man, if you're trying to start something, you're in an industry and your new. what are people looking at to say Okay, this is a risk that I'm willing to take. Like In some situations where maybe you're not, you're not requiring your customer to pay up front. Okay, there's a little bit more safety factor. Maybe you can to some payment methods where the customer does have recourse in our business. manage it primarily wire transfer like, And we're talking big numbers. you know, ten thousand dollars. paris_vega: Yeah, matthew_leavell: Sending you a wire. They have to really believe that they're going to get something back, And and what they're supposed to get back, Scribe, And so I think, in a lot of scenarios, even if you are giving the customer recourse through their payment method or whatever you got to, you got to have some form of credentials that makes them say Okay, this is a good person to work with. I'm making a bet because every time they buy someting here, making a bet that they're going to get as described so that they can take it and and follow through with it. whatever they're playin is okay. I'm going to buy it for Ex percentage. I'm not going to turn around and reset It for Ex percentage to make why margin. And and that's their business model and they're making a bet that you are a good partner to help them get there. paris_vega: Yeah, Now that makes sense. Um, let's pause on the current business matthew_leavell: Uh paris_vega: and get a little perspective on how you learned that that's the way to grow a business, or that's the way to get those sales. So going back in your history a little bit, Um, Starting off, Where did you grow up? Did you have any childhood experiences doing sales, or like dortdoor fund raisers selling doughnuts or anything like that? matthew_leavell: Man, first of all, dad gum at Paris like I've worked so hard not to try to deviate from by low. And now you get me in a conversation. paris_vega: Uh, matthew_leavell: The paris_vega: uh, matthew_leavell: question you ask me my personality. I love to square. You know, when we could do this, we could do that we could. paris_vega: Yeah, matthew_leavell: So it's always like I've really tried to narrow my focus as I've gotten older, but paris_vega: Yeah, matthew_leavell: to question all right. So I was born and raised in Vicksburg, Mississippi, I, you know low, The outdoors. I was in boy scouts growing up, So you know what we did with Boy Scouts with Sell popcorn and oh man, I sold the heck out of it. I would get on my bike and I would go door to door, man, and I'd I'd knock out our neighborhood. I'd remember what houses. people actually entered the door, So if they were like peeking in the windows and ignoring my knob, I was coming back. I was like just one hit onder. I was. paris_vega: Yeah, matthew_leavell: They were Here from me. Um and paris_vega: Assistance matthew_leavell: I go the neighborhood and do the same thing And I don't remember exactly where I ranked in the state of Mississippi, but I was way up there in popcorn sales. M. I don't know if that contributes to anything today, paris_vega: For matthew_leavell: but paris_vega: sure. matthew_leavell: kind of where I'm naturally wild. So started there went to Misssippi State. Graduated from Missippi State. It's going to be a orthodonist, was the goal. paris_vega: Okay, matthew_leavell: While I was in college, I started fishing bass tournaments And I always loved to fish, and I was always competitive, So that was a perfect blend and really got into it. Started traveling with B a s. s all around the country, fiscient paris_vega: Wow, matthew_leavell: and O, and because I was a brilliant college student, decided that I didn't want to be a orthadonist or a dentist, Because how could I fish these tournaments and travel all over if I had a dentistry practice to take care of Yeh man, paris_vega: Yeah, matthew_leavell: your history. Maybe I wasn't as smart as I thought I was, paris_vega: Uh, uh, matthew_leavell: And then you kind of overlay that on to me today, and I'm like All right. What decisions am I making today? I'm gonna look paris_vega: Yeah, matthew_leavell: at twenty years from now and be like. Well, paris_vega: right, matthew_leavell: it was paris_vega: right, matthew_leavell: Um, but you know, decided that I want to fish, but I also was introduced to business, so the first business I got introduced to I was in college and growing up like my friend's dad's den, businesses, or anything like that, so Never really exposed to entrepreneur entreprenerialism. I think I was naturally wired that way, but I never really had a role model or example. paris_vega: Yeah, matthew_leavell: So in college I, someone asked me a buddy of mine I played socker with was like, Hey man, I got a guy coming to my house tonight. Going to talk about this business. You're interested? Sure, man, I'll be there. M showed up and it was what is now. They've changed their name back to a way. Was Amy went to Quick Star, paris_vega: Oh, yeah, matthew_leavell: May, so, when I was involved those quick star and man, that was my first. Like whether people have had positive or negative experiences or paris_vega: Yeah, matthew_leavell: any experience at all. What what that meant for me is? it was the first time I got mentors, Um, paris_vega: Okay, matthew_leavell: from a business point of view, so I was introduced to book. I mean, hacking. Behind me, I got all sorts of books paris_vega: Yeah, matthew_leavell: and my wife Is the one who color coordinated in. I'm not that creative. Just, but, but you know, I got book shelves over here there over there and I've read most of them, but that was my first introduction. Like to, Hey, you can read books to improve. M paris_vega: M. matthew_leavell: various ways, whether it be, you know, just you, maybe not personally, but how you interact with people, how you invest or business. Just whatever, And that was really Opening to me. I remember, I would sit in the front row of my chemistry class, the teacher walking right up there talking. I'd just been reading a book, completely ignoring him like it was so rude. I looked back and I'm like man, paris_vega: Yeah. matthew_leavell: They trying to hit me, But it was. It was a new you new horizon for me. So paris_vega: What was one of the first books you think you? you read That was like handed down from the mentors? matthew_leavell: The magic thinking big paris_vega: There matthew_leavell: by paris_vega: we go. matthew_leavell: words, I think it is. Where paris_vega: Okay, matthew_leavell: is it? my God? Where paris_vega: I'll matthew_leavell: are paris_vega: add matthew_leavell: you? paris_vega: at the show notes. matthew_leavell: Yea? I think it's over there. It's well, Dan Gomme. I can't believe I can't grab it because I definitely have. Um. anyway. So paris_vega: The matthew_leavell: the paris_vega: magic matthew_leavell: Magic paris_vega: looking matthew_leavell: King, paris_vega: big. matthew_leavell: you know, and then how to get rich by J. Paul Geddy, Actually, I think that was the first one. How to get rich by J. Paul Geddy, I still have that book to Um. anyway, So So I started reading these and and it just shaped me as you can paris_vega: Yeah, matthew_leavell: image. And it gave me a platform to practice some of the skills, Um to try to improve. And so for me, I built a decent little organization. I was driving all over the southeast. Um, and thank goodness at that you know, at that point I'm sure my parents were helping me with, you know, gas expense and stuff. I'm sure they were thoroughly upset, But you know they gave me the freedom to do that and so went from from that too, then starting our that. That's my puppy dog Biskit. He comes to work with me every day. But but I moved to. Uh. I graduated and I moved to Tuskluse, Alabama and started a marketing company. This was like right when The digital sign age industry was fled fledgeling industry, like We, Me and my business partner like, came up with the idea and started pursuing it, And then all of a sudden realized there was like this micro industry that we were part of and didn't even realize it. And so paris_vega: M. matthew_leavell: our idea was simple. It was. We basically said Hey, there's waiting rooms around the city. Um that we could go strike a deal with the owner of that waiting room. We could put a television screen and hook a Dvid player to it, and then we could sell thirty second advertising loops on those screens, and so throughout Tuskalusa, we built a network of about twenty or thirty waiting rooms and sold advertising that you know, then again, it comes back to the trust the trust concept, Because now you started having these advertising customers right, and they were looking at you as a platform to advertise on. But then the question would come. Hey, Matt, you all design any marketing collateral? Do you do anything online? Do you? can you help us with paris_vega: Yeah, matthew_leavell: any of this? And and so you know, being young? it was like sure where we're young were paris_vega: Yah, matthew_leavell: atrprnrwe. know T all right. Yeah, we'll help paris_vega: Right. matthew_leavell: you. Um, I said we expanded. That's how you and I of course got connected and paris_vega: Yep. matthew_leavell: we started on some online stuff, and and really doing some Innovative stuff there. I just don't think. I mean. looking back, I think a lot of the the failure of that company was was on me. You know, I don't think I was a great leader. I wasn't mature enough. I didn't really understand enough. paris_vega: I think we were actually early on some stuff because we were trying to do social media marketing before everybody was even comfortable with that matthew_leavell: Absolutely paris_vega: way back. matthew_leavell: we were building custom business Facebook pages, when for like local companies when the only other companies who had that was like Coca Cola. But paris_vega: Yeah, it was it was way early. matthew_leavell: yeah, we were early, but I also think where I messed up as I wasn't targeting big enough customers like I should have paris_vega: Yeah, matthew_leavell: been knocked the doors of Coca Cola or paris_vega: Right, matthew_leavell: S people, and I don't know paris_vega: They matthew_leavell: if paris_vega: were matthew_leavell: it paris_vega: still matthew_leavell: was. paris_vega: kind of local. matthew_leavell: Yeah, Was focusing locally. I think it was probably some of just a self limiting belief like paris_vega: Yeah, matthew_leavell: who am I to have something to offer to Coca Cola, which, in reality, looking back, we had a lot, and had we just or had I understood that because I guess what the audience doesn't know is yet. we kind of started the company, but I was acting as the main sales person and so early up to me on who are we going for and going after it. You know, I just I was a little young and naive. The I don't understand the value, so I guess to pull a business principle out of that is, if you're young and you're starting out, you need to understand the value proposition that you have to offer, and paris_vega: Right, matthew_leavell: do research to understand who your your competitors are. What kind of value proposition are they offering You? are they offering the customers? How do you compare? Um? Because man, you might have like Something really special and paris_vega: Yeah, matthew_leavell: just a self limiting belief. Not realize it. paris_vega: Right, because that was at least twelve years ago. I think now or matthew_leavell: Yeah, paris_vega: more, matthew_leavell: yeah, I'll tell you another lesson I learned out of that company. This. This is kind of one of the lessons that I think eventually killed the company. Was Well, there were two things, but one was. Um, we, me and my business partner. Like our pay role was based on our ownership percentage. That's the most horrible idea in the world because paris_vega: Instead matthew_leavell: my partner paris_vega: of what your operational role was, matthew_leavell: Exactly like it's paris_vega: yea, matthew_leavell: well to get paid. If if you're going to take a distribution based upon ownership, that's fine. but your pay rate needs to be based paris_vega: Right, matthew_leavell: on your operational role. paris_vega: yeah, matthew_leavell: And and so what we did by doing that is my. My business partner was sixty six percent. I was thirty three, and so he was always getting paid double. But it wasn't putting that work. And now you know if I paris_vega: M. matthew_leavell: listen to this, I'm not speaking negatively about him. Please like, Don't let paris_vega: Yeah, matthew_leavell: anybody. paris_vega: yeah, matthew_leavell: We were both young. We were both naive in that regard, and we've talked about it since then. I mean we. we just made some mistakes, man, and so paris_vega: Yeah, matthew_leavell: no one's at fault. But what happened is we drain the company of all the money, so it had no operating capital to grow with. So paris_vega: You matthew_leavell: if you're young and you're starting to have some success, you gotta, you got to realize, leave as much of that money in the company as you can because paris_vega: Right. matthew_leavell: your fuel. that that's what powers your rocket like you Might be growing good. Now, take what it's costing you to grow well right now, and multiply that by three. And that's how you got to. That's what you need to figure out. like what kind of cash you need to have in your company to continue that growth, right paris_vega: Yeah. and how did you guys get the first screen advertising? Clients matthew_leavell: Man, smile and not smiling, tiling, smiling and knocking, Um, paris_vega: Just go matthew_leavell: W. paris_vega: into the businesses and talking to him matthew_leavell: one flat screen in one business. I sat there one day and counted the number of customers. Um, and then after I did that, I kind of got smart and realized well on. I just go ask the reception. S how many appointments that so, in truth be told, I think part of it was there Cute girls who worked there. Um, paris_vega: Just coping out the landscape. matthew_leavell: but either way I got the data I needed, and once we knew about what the monthly flow of customers were, Um, I just started going to local customer, local companies around that business, So we're on the south side of Tusklsotuslus. is not that big at all, but it kind of. if you're if you live on the south side, you're going to do the majority your business on the south side, or buying, I guess, And so when I would go into those other, you know, I go into the local Mexican restaurant. I went into the local dentist. I went to the local kyropractor And really what I tried to do to answer your question, is I, I thought about Okay, Who else from a proximity standpoint could stand to benefit to get their business on in front of these people that were sitting, waiting nothing else to do and try to create some sort of loose pers Nal connection. Like you, think about it, like dentist started Din a dozen. paris_vega: Hm, matthew_leavell: Why do you choose your dentist? It's either a recommendation or you just saw an ad. paris_vega: Yeah, matthew_leavell: And okay, I'll do it. You went. They were nice. They made you smile. Your teeth were shining when you left. You go back. paris_vega: Right. matthew_leavell: So it's like what really drove that and and so really all we were doing were saying, Hey, we can. We got people literally a quarter of a mile down the street sitting, having nothing, And I can put you in front of them. and paris_vega: That was still a time where everybody didn't have a cell phone. Like yet? the cell phones? What came out? the type matthew_leavell: No, paris_vega: we have. Now, the smart phones was two thousand seven, but you guys were right around there to matthew_leavell: We paris_vega: where matthew_leavell: were. paris_vega: they weren't everywhere yet. matthew_leavell: We're talking. two thousand five, two thousand, six. Yeah, paris_vega: Yeah, matthew_leavell: Um, and so M. That's really what we did Now with that. we ended up growing that network to more businesses. And and so then another lesson I learned. I don't know why I'm on the lesson train right paris_vega: Hey, matthew_leavell: now. paris_vega: that's what it's about. matthew_leavell: Yeah, another lesson I learned in that scenario is M. And this has served me well even into my today business is. just because someone tells you if you had X, I would buy it doesn't mean that when you have X, they will buy it paris_vega: M. matthew_leavell: Like everybody loves to say, they're going to buy everything in the world until they actually have the opportunity to buy it, And then they get cold feet and they don't do it. So why did I say that right? So I, I grew this network we ended up having. I don't know twenty thirty screens around Tuscalusa, And and you know there were people I go and visit. They're like Man, If I could just be on every screen for like three hundred and fifty bucks a month, I do it and I'm like. Well, I mean, we're at six hundred. I don't know well. Finally I heard that enough. I said All right, I got forty people out here saying they'll do it. I calculate some quick revenue. I give them what they want, So I went back to every one of those people and I was like Hey, got ya. Here you go and offered them the deal. I probably picked up only four of the thirty or forty people, and paris_vega: Wow, matthew_leavell: then so I learned most of them were full of crop. And then the, And then I learned That's more just human nature. It wasn't them in particular. it's just paris_vega: Yeah, matthew_leavell: most humans. But then the problem is because it was now kind of known that we were cheaper, My customers that were paying a higher rate. We were in such a small geographic region. I was scared for them to find out that they were paying double than someone else, so paris_vega: M. matthew_leavell: out of my conscious I dropped their price. It ended up costing my business revenue paris_vega: Yeah, matthew_leavell: rather than growing the revenue. Um, paris_vega: Yeah, matthew_leavell: so learned that lesson and the only other thing that really kind of got us to a point where we we, where that business didn't work out. Was we just we couldn't deliver the deliverables for the time estimates we quoted. We just paris_vega: M. matthew_leavell: blowing time lines, and that simple math man, it just eventually paris_vega: Yeah, matthew_leavell: doesn't work. Um all in the scenario of shedding Business down, Um, I learned a lesson that actually saved by low warehouse, paris_vega: Okay, matthew_leavell: which is current business and know just me personally. I'm very loyal. Always have been. It's just I don't know how it was to operate Whether that's loyalty to my. I think that's what was driving me dropping the price on my existing customers, just being loyal to my network, and I was that way Our team that we had, at that point, or at least tried to be to the best of my ability, And so we were on a sinking ship, but I didn't want to let anybody go, paris_vega: M. matthew_leavell: And I mean, part of that was just me personally wanting to avoid that conversation. but I mean there were other owners of the company. Other people could have had those conversations, but for whatever reason people were looking at me to do it. M. I didn't want to do that And so I just thought like, like magically, we were going to find a genie or something. An they were goin to grant just three wishes and the business would be successful, but that didn't happen. So what I learned is hey man, that hard conversation that you didn't want to have. it actually happened anyway, paris_vega: Yeah, matthew_leavell: So wasn't going to escape the hard conversation. The only paris_vega: Right, matthew_leavell: different is instead of because I wasn't pro active about it when it actually happened like there were no other options and there was not another day Left Like I couldn't even say hey, guys and I'll leave their names out just paris_vega: Yeah, matthew_leavell: for paris_vega: yeah, matthew_leavell: the. But you know I remember delivering the news and they started crying and they're like, Can we not do something? I'm like, No, today's last day. like I, we don't have the money to do another two weeks. Like so I botched that man. paris_vega: Wow, matthew_leavell: I didn't paris_vega: yeah, matthew_leavell: all. Um, but what what I did learn from that lesson is M. You know and well we can talk about if we want to be balowarehouse. You know, in our journey. Yeah, we were on the five thousand. That's great, but in the middle of of growing it we we had to completely scrap and shift business models, paris_vega: Really. matthew_leavell: and in that process literally we were so close to to going bankrupt. And you know whether we actually failed or not, I again, the loyalty And I would have. I probably never would have failed. I've probably would have just gone and gotten another job and paid on the debt for another fifteen years. paris_vega: Yeah, matthew_leavell: But um, but most definitely it was there. I mean I, I don't know what we're in. twenty, twenty three, So probably twenty twenty. the Christmas of twenty nineteen, or the Christmas of twenty twenty? paris_vega: Yeah, matthew_leavell: Um, you know, it was like things. We're going great up until about October and then all a sudden I was like Where's all my cash? paris_vega: Dang matthew_leavell: I had no cash in the business. Our sales were good, had a lot of product on the shelves, but we had no cash and I started to dig into what was going on, and essentially we were selling all our high priced in demand stuff. and because we were ramping up fast, it made it look like our sales were increasing. But that's only because we just we were processing more product like in a given paris_vega: M. matthew_leavell: Last month, we made a processed half a million dollars of product This month, we processed seven hundred thousand Next month, we processed nine hundred thousand. So because we were growing in what we were processing, there was more of the in demand items on the shelves to sell, so it made our sales look like they were increasing in paris_vega: Okay. matthew_leavell: reality. And so we thought, Hey, we have a thriving business and we were making purcpurchasing decisions off of that hiring decisions. All that in reality what was happening is. Yeah, we were we were selling. I mean, those numbers weren't alive. But what was hidden was there was about out of all the high priced stuff that was in demand that was on the shelf, there was a lot of lower price stuff that people just didn't really want that we were eventually going to have to discount to the point where we were taking a loss. so we were looking at the profitability of the company, But all this stuff that we were eventually going to take a loss on that was like a deferred loss and it wasn't balancing out the profit. Does that paris_vega: Okay, matthew_leavell: make sense? paris_vega: a little bit. Maybe this would be a good time to back up and tell kind of a little bit about what bile warehouse is and how that business model works. matthew_leavell: Well, in short, paris_vega: How that got started. Yeah, matthew_leavell: we, it almost created our company. I mean, paris_vega: Right, matthew_leavell: I did that business model. I still remember like telling my wife Man, we can't buy Christmas tree this year. I mean paris_vega: Yeah, matthew_leavell: Christmas seventy bucks, and I was like we can't do it. and I mean I'm I am not ashamed to say. I mean, I had to do an employment for a while. Had to paris_vega: Wow, matthew_leavell: all coincide with carntoours. right. paris_vega: Yeah, yeah, matthew_leavell: None of it really helped but had to do that for a while. I remember sitting in the living room kind of curled up in a ball, just crying. Like paris_vega: Dan. matthew_leavell: what happened? I mean, that's all like paratime paris_vega: Yeah, matthew_leavell: shift in two months. paris_vega: wow, matthew_leavell: And so the lesson learned is the only reason I didn't hit bankruptcy in this is because when I first got the bad news, there were a few people that I was if about on our team, and the paris_vega: Yeah, matthew_leavell: day I got the news, I remembered the market And where I didn't let people go fast enough. I paris_vega: Right, matthew_leavell: called people into the office and let them go that day. Um, I didn't know what was wrong, but I knew something was wrong and so sorry. I'm kind paris_vega: Yeah. matthew_leavell: of ramp, paris_vega: now that's matthew_leavell: but paris_vega: good. matthew_leavell: trying to paris_vega: That's matthew_leavell: bring paris_vega: a good matthew_leavell: that. paris_vega: way to. Yeah, that's good to tie it together. Um, matthew_leavell: Um, paris_vega: and so was it a matter of like, just misunderstanding or miscalculating on the accounting side and having like an account or somebody, go deep with you and explain the dynamics of that or was it you having to go deep and understand it? matthew_leavell: And I was told when I got started, Because so to to explain a little bit more about what we did, paris_vega: Yeah, matthew_leavell: You said there. Um, you know bile warehouse, Um, we, we. We started as a hundred percent sellin on bay, so we're in the liquidation industry. Um, we would buy liquidation product customer returns, and then We would take those customer returns and we would basically take one by one take pictures. Assess whether they work, whether they have all their park. All that list of one bay sell em. We were receiving eighteen wheelers full of product Doing this. We had a staff of probably I forget at this point, but let's let's say fourteen product specialist, which all they were doing all day was and posting product paris_vega: So did you say how that started? Like? Did you have to just buy a truck and take pictures yourself and like, matthew_leavell: Well, so let me finish talking paris_vega: Okay, matthew_leavell: about financials, and then I'll get to paris_vega: Okay, matthew_leavell: that. paris_vega: okay, matthew_leavell: That's actually pretty fun. If anybody paris_vega: All right, matthew_leavell: thinking about it, the answer is Yes, your bathroom can be a photo station. I'll get to that, paris_vega: All right, matthew_leavell: but your wife won't like it, so so when I got started, I had a guy who had been in the industry a long time, so E told me he told me to watch out This, but I didn't understand what he was telling me like he didn't explain it, and he said yeah, and I mean they had grown a massive company, sold out to private equity. I mean big deal, paris_vega: Yeah, matthew_leavell: and paris_vega: yeah, matthew_leavell: with bay, also, and he said, Look what what we eventually did is is if an item sat on our shelf for more than like sixty days, I think at day sixty they basically booked their cost in that product. They wrote it off in, too. It is a loss. Okay, so what does that do to your to your financials? You still got this product on your shelf, but you basically just wrote it off as if you no longer have it and it was a complete loss. No revenue to counteract that what they were doing and what he was trying to tell me to do with saying, Look if you're growing, your sales are going to be increasing. You got to match those increasing sales with the product Eventually going to lose money on to balance out so you can make good decisions, so your profit doesn't show fifty thousand dollars this week. You balance it out with a forty thousand dollar loss, So now you're at a ten thousand dollar profit. Now you're making decisions off of only a ten thousand dollar profit versus a fifty thousand. Now they still had that item, so once they sold it, they book it as revenue. They already, they already had taken the cost the loss. So then it was just pure revenue that hit their pen. But what it did is it balanced out their books for him paris_vega: Yeah, matthew_leavell: and he told this, and I really had. no. I didn't understand what he was saying. paris_vega: Yeah, matthew_leavell: you know, man, if you're talking to somebody experienced in an industry and you're getting paris_vega: Right, matthew_leavell: started, you don't understand what they say. Don't be afraid to ask for clarity. because paris_vega: Yeah, matthew_leavell: gosh, dang it. that would have saved me so much heartache. Um, so that that's kind of. Yeah, I was told About it. but paris_vega: Okay, matthew_leavell: know paris_vega: yeah, that matthew_leavell: how paris_vega: makes matthew_leavell: do? paris_vega: lot of sense. matthew_leavell: How did we get started with bile? Right? I actually was in a business group with a guy and he actually had a store that they call him Bend stores. Basically paris_vega: What do matthew_leavell: it's paris_vega: you mean by business group? Like a master mind or matthew_leavell: yeah, like a master mind. It's called visage. It's a international organization paris_vega: Okay? matthew_leavell: and we paris_vega: Heard matthew_leavell: number paris_vega: of that? matthew_leavell: seven. Um, anyway, So he was in the business and he And what they call Ben stores. where it's It's a concept where you walk in and it's just bins of random product and you just dig through. And if you're like, if you're there on paris_vega: Huh? matthew_leavell: their rock day where they've put new product in, you're paying like five dollars for anything. Whatever you grab. It's five bucks, or you know, some people might be seven bocks or nine bucks or whatever, but it's a flat price. Whatever grab is that price. Then the next day, so let's say it was five bucks the next day. everything is four bucks. The next day everything is three bucks. Next day To one gets fifty cents, and then they re stock and it all goes back to five bucks, and the cycle starts over paris_vega: Huh? matthew_leavell: well. So he was in this business and had some stores doing really well. The problem is is you can't make your numbers like you can't buy a truck load. Um, and if if you're paying on a percentage of retail value of that truck load, you can't take the four thousand dollar night vision scope and throw it in your bends and sell it for five bucks and make a prop On that truck. So what do you do with that? Well what they were doing as they were running through bay, But they were getting really tired of bay. They didn't want to do it and I was in property management at this time. That's what brought me to Nashville, and we, we. I was in property management. It was our first acquisition of another property management company and it was my responsibility to move up here and integrate into the portfolio and man that was prob. On Of the hardest things I ever did, We made some dumb mistakes or dumb decisions and how we tried to do that and it just caused a bunch of stress And so I was at a point where I was like, Dude, I need something different. I cannot continue with this stress like it will not be healthy. I'll have a hard attack before forty. paris_vega: M. matthew_leavell: And so I bought some of the high priced stuff from him and came home and was like I wasn't even thinking about a business man. I came home and I told my wife her name is so Anthea color Sam. I was like Sam. Like what? I got this like paper, you know, printer, paper box of like, I don't know fifteen items or something, and one was like a knock off Go row. And you know some other you know, speak paris_vega: Yeah, matthew_leavell: or what, And she's like that's great. What are you going to do with that stuff? I'm like, I don't know, but it was all five books, so I figured why not buy it paris_vega: Uh, matthew_leavell: like paris_vega: uh, matthew_leavell: I mean he, paris_vega: Yeah, matthew_leavell: but you're you're not going to do anything like her. I said. All right, whatever, I'll just throw it on bay. I'll just sell it and so I hopped on Be listed. It sold. It made like three hundred books. paris_vega: Dang matthew_leavell: Well, while I was there, Um, they were telling me about a new program they were launching called Small boxes or small, so let's call it small boxes. And anyway, it was where they would have a box of pride And there might be fifteen items in it, And and I would get an Excel manifest with the items, the U, P, C, and what the retail value was That was in the box and I said, Wait a minute. See I can get the box. I know it's in it, and you'll give me that El manifest. they said, Yeah, Well, the minute they said that my wheel started turning because I've utilized remote team members before, and so I was like, Dude, if I get an Excel sheet, I can upload it to a Google fold or somebody in And India or wherever paris_vega: Yeah. matthew_leavell: they are, can log in at night. Get that build out. The draft listings in the Bay, do all the research to put the information in. The next day, I can take pictures of the product and add it to the draft listing posted alive and there we go. like it could be a side hustle. paris_vega: Yeah. matthew_leavell: I whipped out those processes, probably in a couple of days, and got it built out and went and bought some boxes and Sold them within a week, and then went and bought more and paris_vega: Do you matthew_leavell: dated paris_vega: get a matthew_leavell: it. paris_vega: guaranteed price so you know what the items are, so you can know if your price is going to be profitable Right because you can research the products before you buy it. Is that matthew_leavell: Yeah, paris_vega: Okay? matthew_leavell: I mean all reality. I was those. Those programs exist today and they can work if somebody is based out of their house or whatever. paris_vega: Yeah, matthew_leavell: But if you're trying to build a business like the numbers just won't work if you're trying to do it in volume. And we learned that lesson, But it's kind of funny because you know I started buying more and more, And and so the next thing I knew, I would still work In property management, and I was very diligent to make sure that my side hustle never took time away from my employer like that. Just remember the whole loyalty thing that that's not not right. You know, if he's paying me to a job, I need to do that job. and when he's paying me now in my bare time fair game, I can do what I want to in my spare time. paris_vega: Right, right, matthew_leavell: Um, but it was getting to a point where I couldn't come home and take pictures every night. Kids. I just had a new born baby that was colic and Oh, my gosh, paris_vega: M. matthew_leavell: if anybody, ky baby, I feel for you right now, but don't worry. you'll get past it. paris_vega: Yeah, matthew_leavell: So I did what any natural human being would do. I asked our baby sitter, Hey, I always, I always trust you being in our house when I'm gone, So how about you come in during the day and take pictures of product and I'll pay you for that paris_vega: Nice, matthew_leavell: That he had just graduated from college. He acts. He was the nephew of a guy worked with at the property management company. He is still with us in my right hand man today, but he was like all right. He was thing about going to P. T school, so next thing you know, he's coming into our house, so we grew that to. We had shelving set up. You know, we took over the grage, We took over the play room and took over another room in the house, and had shelving set up, and probably had a hundred and fifty Thousand dollars worth o product An ain't given time in the house. We had seven people showing up every day taking pictures. paris_vega: M. matthew_leavell: And and that's where the the I learned photo station or bathroom sinks, where you got the lighting right above. you just got to put daylight bulbs in and you can create a photo station. And paris_vega: M. matthew_leavell: so finally my wife said, You guys do something different, So we moved to a warehouse and started doing it there, But that's how below got started, Man, and then we went through what we went through. almost, you know, almost shut the business down, paris_vega: Yeah, matthew_leavell: but honestly, I mean with, we saw the virus come in and didn't want to be in a warehouse at that point, but also thought, and things aren't going real hot, so it's probably not a bad idea to move out. So we moved out of the warehouse, and then Corona virus came along and really there was no one that was going to hire me anyway, So then I paris_vega: Yeah, matthew_leavell: just put down and said, How do I figure out how to get customers? Because it was a new business to sell by the truck load. I was buying by the truck load, so I know where to get some of this stuff. So how do I now sell by the truck load? And so I decided to start some Facebook groups and the fast forward to today Those Facebook groups each probably over two hundred and fifty thousand members there, some of the largest Up in our industry. Um, and that became a platform for truck load sales. You know we would. When we first started the groups, nobody was in them, but paris_vega: M. matthew_leavell: I told myself every day I'm going to make a post of truck loads available every day, and pretty soon there was another member and then there was another member and then there was another member and then we eventually sold our first truck and We sold our first truck one month. This is probably seven months into working on it every day. full time, sold the first truck. Um, next month, we sold three trucks the month after that, We sold like thirty six the month paris_vega: So now matthew_leavell: after paris_vega: you're selling to people who are wanting to kind of matthew_leavell: He. paris_vega: do a similar business of where you started. matthew_leavell: That's it. Yeah, paris_vega: Okay, matthew_leavell: yeah, buying truck loads. a lot of them sold by the pilot, so they'd receive the truck load into the warehouse. put a price tag on every pilot and sell by the pilot. The people who would buy the pilot would sell on Facebook Market place, sell on bay, sell on Grabe sales, flea markets, all sorts of stuff. A lot of them may have been maman pop stores that have one to three discount liquidation stores A lot of them had, paris_vega: Hm, matthew_leavell: And stores like I was talking about before, Um, some exporters, I mean, just all sorts of people paris_vega: And what was the? I may have got distracted because my dog ran in here a second ago. But what was the switch and business model that you had to make specifically? Because before you were the one processing everything and selling it directly matthew_leavell: Selling everything on Bay and paris_vega: Right, matthew_leavell: M. And you know we dabbled in selling by the palate, We dabbled in selling as a percentage of retail by the piece out of our warehouse. We dabbled in having a bin store in our warehouse. paris_vega: Okay, matthew_leavell: Um. But, but the shift in business model was just selling by truck load only paris_vega: Oh, okay, matthew_leavell: So any customers we had, we no longer were selling to because none of them were buying a full truck, paris_vega: Right, matthew_leavell: and Um, and so that that was the shift, a hundred percent truck loads. paris_vega: And so that's matthew_leavell: Yep, paris_vega: still? The focus is hundred percent truck load. matthew_leavell: Um, Well, yes and no, you're you're going to get me. When is this going to air? You're going to get me doldingomotion. paris_vega: No, matthew_leavell: That, maybe paris_vega: you don't have to give anything sensitive out. of course, matthew_leavell: I'll give you some good stuff. So yes, it is. However, we are expanding on the idea. We have always had kind of a software development side. Like I told you, I liked squirrel, right, I like to paris_vega: Yeah, matthew_leavell: see objects and go after him. So when we were in our warehouse, we were selling on bay. we had a software and we were paying that software company twelve hundred bucks a month to allow us to sel Omne channel, which my channel means to sell on multiple market places at once, And if the item sells on one, it takes it off all the others, so you don't over sell your inventory. Um, well, I wasn't really happy with number one paying him the money, but number two all the research we had to do and I just was like Man, there is no way all this research like item description, stock photography, item specifics up. C. Cut like all this junk has to be online somewhere And so again, I was into working with remote remote team members and so I was like, You know what I got our lead developer from when we had the marketing company days, and I said If I can just get him to like, look at what someone like to hire someone on up work and just get him to help me hire someone and say yeah, they know what they're talking about. I can. I can then manage that person to build just a simple tool so that we don't have to do all this research. And so I reached out to him and and he said, You know what? There's a guy that is in Tuscalusa, Super trustworthy. He actually just left where he was worked. And you know he wants to need to be at home with his wife. I think he'd be perfect for it. He'll be a little bit more expensive, but perfect. He can do what you want. All right, Cool that's fine. So brought him on board. paris_vega: He. matthew_leavell: He still worked with us today Is his role paris_vega: Awesome. matthew_leavell: is a little different, but I works with us today. Um, and we started building the software. so we built a software out that integrates with Ba, Amazon Ship station Shopify. we started integrang with Facebook. We never fully completed. What else does it integrates with it? Banana, Maybe one or two others. And so we built our own Omni channel software. You know we could get picked, you know, shipping pick list. When item sold, it managed the warehouse with where every item was stored at, managed paris_vega: Wow, matthew_leavell: all our photo man. I mean, we were operating on our business through our own hunger and software. Now there paris_vega: It's matthew_leavell: was no paris_vega: awesome matthew_leavell: beautiful I paris_vega: right right, matthew_leavell: becaut. We didn't need paris_vega: yeah, matthew_leavell: that, but we Built it and and so I say that, So Yeah, truck loads are the focus, but we haven't lost our software development, so now we are in the final stages of building out an entire suite of management tools for selling in our industry. paris_vega: That's matthew_leavell: There's paris_vega: awesome matthew_leavell: no other tool that we know that focuses on selling in our industry, anywhere from full truck loads to Palot Box lot, to individual items, Um, and being able to manage the inventory, being able to sink with the major market places being able to network with other sellers paris_vega: When you say matthew_leavell: that utilized paris_vega: when you say sink with the market places, you mean like integrate the product feeds and they automatically distribute to the store you've set up on whatever marketplace. matthew_leavell: It's your website. Your websiteis just a sales channel. paris_vega: Yeah, matthew_leavell: So whether it's your website Bay, Amazon Banana, paris_vega: That's awesome. matthew_leavell: you know, we haven't integrated with Makar, but if we can we will you know. So I mean some of these other other platforms. Um works with a lot of the marketing. You know, integrate your marketing with. paris_vega: Awesome. matthew_leavell: I mean as we. Yeah, it's it's pretty advanced. I did some math. Figured it would cost me now so much money and we're well way past that. Um. never realized that software development paris_vega: Oh man, matthew_leavell: cost this month. paris_vega: yeah, it can matthew_leavell: M. paris_vega: be infinite. matthew_leavell: Oh, my gosh, it's no joke, but we are. We're at the now. We have a team of developers. Probably, I think it's probably seven eight people now And it's it's its own little business within our business, But we're about to launch our our initial. I'd call it B P. but it is so far past n B P. It's not even like we read the B P book and said Yeah, we're going to go the complete opposite direction. Let's just build everything. It was probably the dumbest thing in the world. Anybody listening to this who's in says, knows that that's probably dumb. but paris_vega: It seems like matthew_leavell: you paris_vega: your matthew_leavell: know paris_vega: other business matthew_leavell: read, paris_vega: is feeling it, though, right, like you're not having to depend on the software for the revenue. matthew_leavell: That's exactly right. What where building? whether anybody else decides to use it or not, we're going to use it and it's going to give us efficiency. It's going to help us sell more. It's going O, help us network with other sellers And it really competitors. They re competitors, but we still work together right and it's going to help us network with them to where everybody can benefit and sell more. Um, So whether other people want to use it, Not as a paid subscription, or however we decide to charge for it, I really don't care because we're paying for it with cash. We're not having to. We don't have an investor. We haven't had to take money out, and we're gonna be able to use it for us, paris_vega: Awesome, matthew_leavell: so that that's going to diversify our business quite a bit and really separate us. I mean that's we have a lot of eggs in our basket in that basket, paris_vega: Yeah, matthew_leavell: and then paris_vega: and is this something that the truck load customers would use as well, so you can up, sell them to the software. matthew_leavell: Absolutely so. paris_vega: Cool. matthew_leavell: one of the challenges in our industry is like, if you're a buyer from the buyer side is finding the inventory you need, and how do you find it? And I mean currently, one of the main ways is you'll go to our Facebook groups and you start scrawling through the post. And Okay, I found it and it's eleven thousand dollars. Scroll a little bit further and all sun, you find the same thing for ten thousand, Scroll a little Further you find the same thing for fourteen thousand, paris_vega: Yeah, matthew_leavell: And it's like and it's like All right. there's no curation here. Um, so yeah, we, one of our value props to the buyer side is to be able to not only help them find that in a search able data base, Um, but to like, let them know when it's uploaded. So Um, if I say I'm looking for apparel. Well, if Just in my user profile, say I'm looking for apparel in this part of the country, then when apparel in that part of the country is uploaded to the system, I get a notification. paris_vega: M. matthew_leavell: So yeah, that's one small piece paris_vega: Yeah, matthew_leavell: of what we're trying together, but the power behind that could be huge, especially in our industry. Um, so we're looking at doing that. we are. I've kind of been anti warehouse since we've moved out of a warehouse, but I've got a lease on my computer right now for another warehouse. We're fin. I mean, we've just grown to the point that we got to have one. We're doing Tremendous business without it. but there's certain deals we just can't get into, Like paris_vega: Got you. matthew_leavell: if want to negotiate a deal for a fifty truck load package or a hundred truck load package, Um, which we've done plenty of that as we are, but we always get to the point when we're down to the like the last twenty. And it's like All right, who are we going to move these twenty to? Because if we don't, we don't have omewhere to ship it, or we're pulling favors with our network. He can? I ship five trucks to your facility, blah, blah, blah, Um, And we're just at the point that we're bigger than that at this point, paris_vega: Yeah, matthew_leavell: M. so yeah, so we're We're the business model. Will there expand a little bit more? So we're really at an inflection point? paris_vega: That's really cool. So when you expect that customer facing or like public facing software to launch matthew_leavell: You're asking the questions that I, you're asking today. paris_vega: Okay, matthew_leavell: Honestly, I gave up on forecasting launch paris_vega: Yeah, matthew_leavell: date a year ago because we just never hit him. Now. What what we have done here recently is? you know, we're fighting fighting going into Gera, and and actually managing agile development. you know, in Print form at, and I mean, we're doing sprints, but they weren't really sprints like they weren't real well document, and we now have just fully gone into it, I mean, or were paris_vega: Yeah, matthew_leavell: fully operate out of this off, where we very clearly are defining scope for every little, every little piece of and overall sprint we're tracking. Know as things are getting done, are we meeting the sprint deadline? Because we just finally got to a point that I finally just told the Deb Deb team. I said, Look, guys, I really don't care if you sand bag like crazy and just like like, Just set a goal to finish this one thing and get it done in an hour. I don't care if you send back that back that bad and we call it a two weeks print. I just need to get us to where we are accomplishing what we set out that we're going to do paris_vega: Yeah, matthew_leavell: like we say we're going to do something. we got to accomplish it, and then we can wrapchited up from there, But we just got to get a system In place that holds us accountable And so we were on. I think our third sprint since we've gotten into that model, And you know, the first sprint they didn't sand bag, even though I thought they should. they did, and we missed it by like ten percent. The second paris_vega: Not matthew_leavell: sprint paris_vega: bad. matthew_leavell: we comatall, except for a little bit of left over Q. A. this third sprint we're on track to complete it all. There's only a little bit of question, Some of the carry over Q that we got to complete, so I mean it's it's learning how to get those processes in place and software. Deb is just so hard because it's so much different than just a normal or our normal business. It completely paris_vega: Sure, matthew_leavell: different skill set, pletely, different management structure. Um, I mean, it's just is crazy, and then once we finally launch it, we'll start getting customer feedback loops and that's probably on. Throw It's all off again and we'll have to reach Set. paris_vega: Yeah, matthew_leavell: You know, I mean, it's part of business, it's learned, and if you don't get outside the box, you're never going to grow paris_vega: Right, um, when you switched business models to the truck load only, how did you get those first truck load customers? matthew_leavell: Man, It was really just consistency. Um, until I found somebody dolitable enough to trust me. that then with, in reality it was the consistency of posting in our Facebook groups and paris_vega: So you've already had the Facebook matthew_leavell: be paris_vega: groups at that point when you switch matthew_leavell: Yeah, paris_vega: business models. Okay, matthew_leavell: Yeah, and being pro acted well, I mean, realized when I started, I knew I need to switch business models probably three months before. I did it for months. so I started the Facebook groups and started posting every day probably three months before like I would, because I knew what we were doing was not going to continue, not in its current form, And so I knew I had to do something else and I didn't know anything else to do. But hey, I'm just going to start a consistent habit paris_vega: Yeah, matthew_leavell: and M, and hopefully it pays off paris_vega: Huh, matthew_leavell: and it did so. Now it's more consistency and I think once our groups had enough members, people all that you know now I don't think this. this method works. at least not in our industry today. I don't think it works. Maybe I'm wrong, but there's a lot of people who have tried to duplicate it, But it hasn't really worked out as well for them as it did for us. The groups just haven't exploded like ours Did. I do think there's some specific reasons for that, but I also just think we timed it really well paris_vega: Yeah, matthew_leavell: and wasn't on purpose. It just was happens thence, which keeps swinging the bat, and eventually you're goin to get lucky paris_vega: Yeah, matthew_leavell: and hit paris_vega: so you built out a good matthew_leavell: M. paris_vega: community there in the Facebook groups. Have you expanded that community into any other platforms? matthew_leavell: So we haven't. That's actually paris_vega: Okay, matthew_leavell: a area. So one of the places that I think we are lacking as just an overall, Team M is getting a a head of marketing, Um, and and having somebody who who can oversee just the marketing across the board, paris_vega: Yeah, matthew_leavell: whether it be software, M on Social, for our truck loads pallets, whatever it is, and They don't have to do all the work, but they do need to have a vision and they have to manage the team, and that team could be a team of remote team paris_vega: Yeah, matthew_leavell: members. I don't care who it is. paris_vega: right, matthew_leavell: We just need somebody to have the oversight and we just haven't found that right person yet. I mean part of the issue, as we're investing so much in the software paris_vega: Right, matthew_leavell: that it's not like we just have just crazy money sitting to the side. Though, well, let's just hire this person, paris_vega: Yeah, matthew_leavell: but started looking, started putting feelers. Um, but that's where I think one of our next inflection points will come from. I think our software one. I think, when we open the warehouse, that's another. I think, when we actually get the right person in marketing, that's going to be a big, big boost for us. paris_vega: Yeah, matthew_leavell: A really big. we have not expanded. I mean, and that's a. that's a concern. I mean, we've started. We started an effort towards O. paris_vega: Okay, matthew_leavell: Um. and we did. We started that probably Six months ago. Eight months ago. we got a long way to go there. I paris_vega: Right, matthew_leavell: mean we, and we know our websites a hundred percent of C, S, s, h, t, m. l. So um, you know we don't. We paris_vega: M. matthew_leavell: don't have the ability to go download the yeast plug in for, so you know we gotta. We got to build all that ability into our website ourselves. We didn't have a C. M. S. We had to implement strappy, Um, We didn't you know? So I mean, there's A lot of build out that. paris_vega: Yeah, matthew_leavell: honestly, Had I understood that when I made the decision to go that route, I probably would have gone the other route. paris_vega: Right, matthew_leavell: but um, but it's just taken some time to get our co where we need it and to where we can build upon it. Now I think we have a great structure. Moving forward is a hundred percent adaptable to whatever we want paris_vega: Right, matthew_leavell: to integrate off. where whatever so long term, I'm happy with where we're paris_vega: Yeah, matthew_leavell: at. paris_vega: that's always the trade off when people are looking at. Hey, do we build a custom site from the ground up, or use Word press or some other popular platform Because you do get matthew_leavell: M. paris_vega: the benefit of all the plug ends that are pre built, little features or little things that can improve your business model kind of overnight. Supposedly, matthew_leavell: Yeah, paris_vega: but a lot of times it blows your web site causes other issues security problems, and I think, especially developers always matthew_leavell: Step, paris_vega: prefer to build from scratch so they can control everything. matthew_leavell: Yeah, scale ability too. paris_vega: Yeah, matthew_leavell: I mean with our, And if we would have gone with Word press, paris_vega: Yeah, matthew_leavell: the server it was posted on would have blown paris_vega: Yeah, matthew_leavell: up very quick. paris_vega: right, matthew_leavell: Um, so, I mean, I would say if we were financing it with debt, I would have made a lot of different decisions. paris_vega: M matthew_leavell: I would have gone for the cheap word press paris_vega: Right, matthew_leavell: right off the bat. paris_vega: right, matthew_leavell: I would have won for some of those to get the customer base in place. To then we could upgrade. We, just we had the privilege of a cash going business and the opportunity to use it Re, invest in itself. And so we did. paris_vega: So I know Y would go through like a rapid fire of all the different technologies and whether or not you're using it, But it sounds like you're literally just on Facebook. Or is that? Are there other things that you guys are using? matthew_leavell: I, Now really just on Facebook and then trying to get so rolling. paris_vega: Yeah, matthew_leavell: Our soft. Gonna be what we think? I mean, we're building an Eco system is what we're building And not that I'm suggesting that everybody do that. By any means, paris_vega: Right, matthew_leavell: we just thought it was the right move for our industry, and I mean we're taking a flyer on it, man. it's It's just as much of a defensive play as it is offensive. Um, and it is super expensive, but paris_vega: Yeah, matthew_leavell: at the same time if it works out, it could be a really big deal. And if it doesn't then when we lost a bunch of money we didn't. I mean, we'll continue to use it, paris_vega: Right. matthew_leavell: But is what it is, paris_vega: So on the matthew_leavell: We of insight on the other on the others. As a matter of fact, If anybody wants to reach out and give me the insight that would be awesome. paris_vega: And hey me, and you can talk afterwards. Maybe we can help out with our agency matthew_leavell: Sweet paris_vega: or something? matthew_leavell: good. Yeah, paris_vega: Um, So all the other social platforms and everything that's for later for you. Are you doing any traditional marketing stuff like outside of the digital side, like any kind of other advertising? matthew_leavell: With our warehouse, we will. we're going to sell some pellets out of our warehouse, paris_vega: Okay, matthew_leavell: M, so we will look a little bit more local with that, but we're still not going to do like bill boards or anything like that. paris_vega: Yeah, matthew_leavell: It's any we do is going to be digially based. where we're going more down the content route. paris_vega: Yeah, matthew_leavell: Um, you know when when we started talking, I said man, I actually am interested in doing a podcast for our industry on And I am. I mean, a couple of times you've probably seen this little blue tape on the floor behind me back there. paris_vega: There you go. matthew_leavell: That's one of the one of the pegs of my lighting goes. When I'm sitting in that blue paris_vega: Okay. matthew_leavell: chair, like video studio set paris_vega: Yeah, matthew_leavell: up to do it. We just haven't started yet and so we're going the content route paris_vega: Oh, matthew_leavell: to paris_vega: that's smart. matthew_leavell: it. Produced good videos. You know, a lot of times people are like. Well, what do I expect in the pallet off of a target customer return truck load? paris_vega: Right matthew_leavell: Why don't we just video S breaking down a palet and show you paris_vega: There you go. matthew_leavell: right, And so paris_vega: Yeah, matthew_leavell: we're looking at more of that type of stuff. paris_vega: That's smart because Yeah, you can use some so tools and see what questions people are asking related to whatever it is, You know you got matthew_leavell: Yep, paris_vega: your services and then just answer them one video at a time each question. matthew_leavell: A hundred percent as Well as if we're doing the product breakdowns, then I mean, why not just add that video for the that specific listing on our website. Like interest in a truck load? Well, here's some pictures of sample paris_vega: Yeah, matthew_leavell: pallets, but paris_vega: there's a video. matthew_leavell: there's an actual video. Like paris_vega: Yeah, it'd be huge. matthew_leavell: so, I mean other things we can do with the content to. But paris_vega: Sure, matthew_leavell: at the end of the day about creating clarity for the customer. What what are you getting? What are you expecting and then Holding our feet to the fire. A lot of people that kind of grow in the business model that we grew in a lot of people. like to just kind of shy away from any responsibility like. Oh, well, I just broke the load. I made three hundred bucks. M. Yeah, there's a problem with it. I'm sorry I only made three hundred. I mean, I'll give you three hundred. Well, paris_vega: Yeah, matthew_leavell: then tell me who your supplier is. Oh, I'd never tell you that. What? So how am I supposed to get? Like? how am I supposed to be made whole? Right? And and so you know that's just that's not how we operated and never has been. Um, you know we're going to hold our feet to the fire paris_vega: Yeah, matthew_leavell: and it's what our customers responsibility to go to our supply is for us to take care of our customer, and then we'll go to our supplier. I don't know how I got on that paris_vega: No, matthew_leavell: tangent. paris_vega: that's good. matthew_leavell: I'm sorry, paris_vega: That leads into kind of a final question. how we can wrap up here. This has been great. It's been awesome getting to re. connect with you and hear about all the things you've been matthew_leavell: Yeah, paris_vega: doing. Um, let's say there's like a thousand of your ideal target customers listening. What's the pitch or the reason they should use your service? What's that that sale pitch you matthew_leavell: M, paris_vega: would give them? matthew_leavell: Man, really are. There's a couple couple things. I mean, we made our our company slogan Always delivering value. We mean that in a couple ways, number one. Yeah, we're goin to deliver. Deliver you good value for what you paid. From a retail value perspective, We do it. Also, people are like, Hey, do you think this would be good for my business? So like advice, we do it in education. We frankly want long term relationships with our customers. We want them to make money. We want to leave money in the deal for them to make, Um, and we want to help them grow a successful business. You know, there's plenty of people in this industry that like to look at their customers or potential customers as if they have a target on their back. They want to try to figure out how much money can I make off that person. That's just not us. Um, you know, so that would be the first thing. Um, Our second thing we put in every marketing or all of our marketing material is as described, or we'll make it right. And and at the end of the day we hold our feet to the fire on that. I think our Google reviews speak volumes. I don't how many we have, but I know we're at like a four point nine something. I think only shows four point nine, but I don't even know if we have a negative one on there, paris_vega: Yeah, matthew_leavell: And it's because we take care of our customer, So you know there's enough risk in the liquidation industry, so my pitch to them would simply be outside of what I've said. Is there's enough risk? Why are you going to take a risk with working with somebody that you have question marks about, Like from a supply or standpoint, Pick someone that has proven to be dependable, reliable and delivering good product like there's not some secret source. And if There is, you got to be moving such so much volume paris_vega: Yeah, matthew_leavell: that at that the secret source really doesn't like, change your numbers or business trajectory, So it's like everybody thinks they're going to get in and find a bunch of play stations for next to nothing or Air Jordan's paris_vega: Yeah, matthew_leavell: for five buck, And honestly, I say that jokingly, paris_vega: Yeah, matthew_leavell: but dad, that is the pictures that scammers post paris_vega: Oh yeah. matthew_leavell: and people fall for it. They think they're getting a All it Eric Jordan paris_vega: Right. matthew_leavell: for fifty bucks And it's like people fall for it all the time And it's like guys like that's not the industry. So paris_vega: That would be like winning matthew_leavell: if you're paris_vega: the lottery, matthew_leavell: search, paris_vega: almost like the odds of something like that matthew_leavell: I always tell people. it's like if you're searching for the secret source, here's what's going O happen. You're going to talk to every like seller that is trustworthy that you can count on. That's going a say. Actually, Tell you. We'll know. Here's what you should expect. They're going to tell you the real information, but you're just going to not think it's good enough. And so you're going to keep searching. Keep search until you find that scammera. That's gonna tell you exactly what you want to hear, and then you're paris_vega: Got matthew_leavell: going to get scanned. paris_vega: you. matthew_leavell: I paris_vega: It's matthew_leavell: hope paris_vega: interesting, matthew_leavell: that in that scenario you learn your lesson On a fifty dollar expense. I hope it's not a ten thousand dollar one. paris_vega: Right, matthew_leavell: Um, but at the end of the day it's the dependability man paris_vega: Yeah, matthew_leavell: That's at the reliability. It's delivering what we say. That's why people should work with us. paris_vega: I think that's a really good point that I haven't heard said quite in that way before about people will almost search for the cam that tells them exactly what they want to hear, like they're looking through things until they find the Cam that's telling them what they want to hear, and that's how they get scaped matthew_leavell: So in our business, praise that that. the common question that somebody knew coming in is like our business is very contract based Like you'll go sign a contract with Target That you will get all the truck loads coming out of this distribution center for the next two years, and you will pay X dollars per pilot. Right, That's how the contracts are based. And so the new people coming in are like I'm going to buy from the contract holder. Well, all those cameras. Guess what? when you ask them, Are you the contract holder? absolutely, absolutely on the contract holder for sure, and then they talk to somebody who's trustworthy and like us a lot of times we'll be like. No, we're not the contract holder on that, But what's funny is a lot of times my price. I know the contract holders we buy from them, and the funny thing is is that the price I'll sell it to that Person, for it is cheaper than what they would get from the contract holder because we're buying in volume and we're passing some of the savings on, but they just have it in their head. they have to buy from the contract holders, so they pass over us paris_vega: M. matthew_leavell: and try to find the secret source and get paris_vega: So matthew_leavell: scanned paris_vega: they just matthew_leavell: that paris_vega: don't matthew_leavell: that paris_vega: under fully understand matthew_leavell: man. paris_vega: the industry matthew_leavell: That's how it manifests in our industry, and I would imagine it's the exact same way in other industries around there. It just it takes its own form in that industry paris_vega: By you, following the kind of best practisers of the right way or being transparent, you're going to turn off the people who are looking for that overnight success or one in a million lottery situation. matthew_leavell: Which is a double edged sword. paris_vega: Yeah, matthew_leavell: I mean that the news is is that it's those people that are probably looking for the lottery, So when they actually get something that's realistic for the industry, those are going to be the ideal people to complain and say they were scan. paris_vega: Right, matthew_leavell: We kind of turn those people off, but on the flip side, I mean it, it does kind of stink in the fact that I mean that's business and it's it's someone who's legitimately going to buy something. And if If they would just take a step back and think logically, Um, they'd kind of see that we're telling them the truth and we could build a relationship with them that could be years long, where we are setting them up to make money and taking care of them along the way. And so it does kind of stink in the fact that I'd love to be able to secure that business because it's mutually beneficial. paris_vega: Right, because if you can help make your target customers, because their business is basicallyu're, kind of a B to be at this point if they're buying matthew_leavell: That's paris_vega: a truck matthew_leavell: it. paris_vega: load, and if you help them through your educational content or whatever it is, or giving them realistic prices, and uh, not being that like one in a million lottery situation, like, if you help them make their businesses better, you're goin t have a long term customer and you both matthew_leavell: Hm, paris_vega: kind of grow and there's a little men take in there. matthew_leavell: All the time, I don't care that you buy from someone else. I'm not the person that's going to be like you're buying from them. Well then we're done. That's not me, and there's people in our industry that try to act that way. That like you're you, don't go buy from anyone. I don't care who you buy from. I want you to make good money, whether you buy from me or buy from someone else, Because as long as your business is profitable, I know we, we are doing a good enough job on our, And to offer enough variance in what we offer, like enough diversity in the in the loads that we offer, and we're always pricing them at reasonable prices, so I know that if I can just make help in some small way that someone's business is around for the next ten years. At some point they're gonna buy something from us. paris_vega: Yeah, matthew_leavell: It may be three years down the road. That's cool. I'll be like Johnnie Apple. See man planting seeds every day. paris_vega: Yeah, matthew_leavell: In One point they'll sprout and that's cool and that I'm okay with doing that. It's a long term vision. It's a long term play and we plan to be around for a long term paris_vega: Awesome. well, Matt, this has been great. Appreciate your taking the time sharing all the ups and downs of business. I think this is a real kind of raw look at entreprenurial life and doesn't always go the right way, but it sounds like you've learned a lot of hard lessons through it all and got a really solid business going Now matthew_leavell: Man. We're excited for the future and I appreciate it. We'll have our challenges along the way were by no means past that, but we're going to try to keep our smile and keep our positive attitude and just serve our customers paris_vega: Awesome, all right, thanks Mat. matthew_leavell: Absolutely price. I appreciate it catching up. Thank you.