71. Scaling a Laundry Business Nationwide with Jorge Rodriguez & Alejandro Cheng

Jorge and Alejandro built a laundry business for themselves in Miami, Florida. They developed a laundry pick-up and delivery system called Hamper App to help them take in sales and manage their business. As their business grew, they started thinking of ways to scale out. That’s when they started partnering with other operators nationwide to offer high-quality laundry pick-up and delivery across the country.

Their story of grit and progress is inspiring and is peppered with practical tips, advice, and wisdom to help you grow your laundry business!

In today’s show, Jorge, Alejandro, and Jordan discuss:
* How they got into the laundry business
* Their first move when developing their business
* The importance of data collection
* How to advertise
* What kept them working hard on their business
* Pick-up and delivery vans
* When to quit your 9-5 job and go full time in your business
* How to hire your first driver
* Scaling out to multiple laundromats
* Pricing your services
* 24-hour laundry turnaround
* Branding
* Developing an app and turning it into a business

And much more!

Watch The Podcast Here

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Episode Transcript

Read the Transcript Here

what’s up guys it’s jordan with the

laundromat resource podcast this is show

71 and i am pumped that you’re here

today because today we’re going to be

talking with jorge and alejandro

about how they got into the laundry

pickup and delivery business

and how they grew that into hamper app

and what they’re up to with hamper app

these days it’s a very cool story a very

cool journey they’ve been on so i know

you’re going to love hearing their story

but you’re also going to pick up a lot

of great practical

knowledge practical tips they they bring

a lot of that stuff uh in this episode

today so i know you’re going to get a

lot out of it and i want to jump into

that with them just a couple quick

things before we do

number one there are a lot of people

jumping in on laundromat resource

joining the free membership over there

joining the pro membership

over there and it’s been a ton of fun to

see that to be a part of that and to

help that grow we’ve got a lot of

interesting and very cool and i think

super useful things that are coming down

the pipeline right now with laundromat

resource that we’ve been kind of working

on behind the scenes for a little bit so

i’m very excited to start releasing some

of those things uh but i just wanted to

remind you um hey if you have a

membership over there free or pro or

whatever

or if you don’t go sign up for one

because man get the free one you got

access to a whole bunch of tools and

resources

and uh and and the forums over there but

get over there jump into the forums go

meet some people introduce yourself in

the introductions forums let people know

where you’re at who you are and what

you’re up to uh with your laundromat

journey and go interact with some other

people who’ve introduced themselves

welcome to the community and uh and go

ask a question answer question in one of

the other forums i mean there’s a lot

going on a lot of cool

interactions i just

maybe it’s just me but i just really

love that

so hey it’s been awesome thank you guys

who over there doing that and if you’re

not yet go check it out go see what’s

going on over there come be a part of it

okay uh so with that said i mean we have

a lot of other stuff going on too

besides just the forums we got a weekly

live webinar and speaking of which

there’s a lot of cool webinars coming up

um including uh which is not really a

webinar but i’m doing a live q a with

dave laundromat millionaire wins

wins men’s on wednesday

uh september 30th at uh 4 o’clock best

coast pacific time

and 7 o’clock

least coast east coast

i have not made fun of the east coast in

a while and i just thought you know it’s

about time

we you know knock them down and notch a

little bit over there so anyways come

join dave and i for the live q a it’s on

the laundromat resource youtube channel

uh i’ll put the link

to this and the forums and everything

else that we talk about in this episode

will be in the show notes a lot of my

resource dot com slash show 71 show

seven one uh if you’re on youtube

they’re down below in the description so

you can check them out there uh so come

join us for the live q a dave and i

might be doing a webinar here pretty

soon i’m doing one that i’m very excited

about with andrew the human encyclopedia

cunningham two-time guest one of the

favorite guests

that i have had on this podcast uh it i

mean he just knows his stuff and he and

i are gonna be talking about how to sell

your laundromat so i know a lot of you

guys maybe that’s not gonna be directly

applicable to right off the bat but let

me just say a little pitch for it even

if you’re not thinking about selling a

laundromat right now is number one if

you own a laundromat you probably will

sell a laundromat at some point in time

and andrew has a ton of great tips on

what you can be doing now to make sure

that whenever you do sell your

laundromat you will get the most money

for that laundromat the most bang for

your buck the most value

for that business

so come for those tips if you don’t even

have a laundromat yet uh andrew has some

really really good stuff

uh for you even if you’re planning on

buying one uh because he’s got some

things that you can do from day one that

are gonna ensure that you’re building

equity in your business

and whenever you are ready to sell

that you will get top dollar for it so

come join us for that one you can check

that out and see what other events we

have going on at

dot com slash events a lot of cool stuff

going on we still got the youtube

rolling we got the blogs going out every

week i mean there’s a lot of cool stuff

happening trying to help you find

financial freedom through laundromat

ownership all right man i feel like that

was a lot of stuff and i’m not trying to

like pitch a bunch of stuff to you but

i’m just excited about all the cool

things going on uh so make sure you come

check out lottermyresource.com and

browse around a little bit find out

what’s happening and uh man all right

without any further ado except for

this short message from our friends

atmosphere tv

we will jump into it with jorge and

alejandro right after this alright guys

today’s episode is brought to you by

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all right guys welcome jorgen alejandro

welcome to the show

super glad that you guys are here and

super excited to hear about your story

and what you guys have going on how you

guys doing

excited to be

for the first time in this podcast

all right yeah the first time i like

that

more to come more to come well hey you

guys have some cool stuff going on

you’re doing something pretty unique uh

out there and we want to hear all about

it but before we kind of jump into

what it is you guys are doing can you

maybe one at a time give us a little bit

of a background uh on who you are and

then

once we kind of get to know you a little

bit

maybe you guys can kind of tell the

story of how

you got into the laundry business in the

way that you did

okay

okay so my name is alejandro i’m one of

the co-founders of amp rap um i come

from a long laundromat owner’s family

[Music]

when we came to this country i think my

mom was working actually in a dry

cleaning for eight years

and that’s how i came to actually the

cleaning service

uh business so

after school i used to go over there and

basically i used to help the dry

cleaning owner basically do the little

hanger thing

to make sure that dry cleaning is is

neat and um and afterwards my family

decided to buy their first laundromat

as you know uh their first laundromat is

it’s really excited everybody’s together

the whole family is there

and myself i i also learned the business

uh we end up having two laundromats

already in south florida so uh we have

in three different areas um like count

on cities

and

basically from there um

i uh i met george my co-founder

and

i had an idea um always in my background

in the mind that i wanted something

different right

something for myself i was either it was

a laundromat or it was something else

and i told uh george about an idea and

and george was also wanting to do

something with me

so uh women in college which um

one of the

good things about college is meeting

different people from different

backgrounds yes

and actually we both are peruvians so

oh peruvians yeah

awesome

funny story real quick my wife

like not long after we got married she

went to peru without me for like

four weeks or something so i’ve never

been to peru and my wife went without me

i can’t

i can’t believe that still but

yeah

we all know prairie is really beautiful

uh beautiful country beautiful people um

but amazing food

fyi

so we went over there um so basically um

i got into a fight with my dad as you

know working with family is not easy

so i gotta turn fight with my dad and i

told him that you know i had this idea

with

um just like bags for college students

because one of the london that’s where

we are located he actually is in front

of the college in men

and my dad was um

he was like no no no no no no

i was like okay so i quit

so i i just like it

i decided to quit

and

and i s and that that day actually one

of the

person who was watching in one of the

big

80 pound machine

working citibank

for

10 years

and she noticed i was super mad and

everything and basically i told her that

i was doing my resume

[Music]

and

and uh she told me you want to work for

city and yeah

from there i started working for city

but the idea of

this

business was always in my mind

and

basically george

was the one who basically pushed

everything up to become what it is uh

it’s ham crab

awesome

all right so you have family history in

the laundry business it’s really

interesting

you know i’m always kind of interested

in the past people take and to get into

this business because it’s just kind of

a funny business and pretty funny you

guys came from peru

you know was working for a dry cleaner

ended up buying laundromat you ended up

quitting

and you know oh my goodness and starting

your own thing it’s it’s just you know

the drama of it all is great it’s great

yeah yeah

but then george can tell you a little

bit more about the story

from there too before

yeah well before we get to that you know

jorge i mean you kind of got dragged

into this

industry your family doesn’t own any

laundry mats right

unfortunately not yeah fortunately or

unfortunately

yeah well tell us a little bit about

your background and you know maybe tell

us your perspective of you know up to

this point so far

so we met in college we were studying

business and

i had before we started hand prep i had

four years of experience working in

international business

i worked for a chinese manufacturing

company

selling all around

latin america and the us

so so far i have traveled over 200

cities

all over the world trying to wow

try to sell the

their what they manufacture and i had

experience doing business so i was

saving since they won and i had some

money saved

and talking to alejandro which he was

very on the tech side

and he was talking about google adwords

and how he was

increasing the sales of the laundromat

because he actually helped a lot to

increase the sales and he knows how to

repair the machines and i saw this is a

kind of partner that i need

to and i was i am more into the

financial side

looking into the numbers so

all my experience has been in business

and

trading so

not as fun as alejandro

but i have spent a lot of days a lot of

nights inside the laundromats

and knocking doors visiting laundromats

yeah very cool so i mean it sounds like

a really good partnership that you guys

have because you guys both have

you know important but

somewhat different skill sets that

you’re bringing to the table you know

for a complete

complete business huh

all right so alejandro

quit his job

you know he’s he’s with his with his

family business he went got a different

job you’re working in manufacturing

you know

did you guys just have a conversation

and say hey let’s go start our own

business or how did that work

so it was kind of like

weird because um we had this idea and

george was one of the founders actually

we were three before

and the third one was a programmer right

and we were like okay we have the

programmer we have the

the

the actually

the business person

the business and i have the production

which is me right actually who was gonna

do all the work and the logistics and

all that so we have like the whole team

but then

uh actually if you look at the company

actually the company was registered in

2017 and

anything actually we everything was

about to crumble because of the

developer left the company

that’s when george was the one who told

me alejandro we i believe in this idea

let’s move together

let’s uh let’s uh basically

um get a loan get let’s get our savings

and basically let’s let’s work on this

project

like for every single night until like 2

a.m in the morning so we did that for

almost a whole year

uh actually we have pictures and videos

and we were like

like trying to figure out how this thing

worked right so actually the technology

site right worked

and it was a whole process it was a

whole process and and yeah it was uh

amazing that you know george believed in

the idea and then we actually

came out the first year you know when a

startup usually fails

we were meeting almost every night in a

starbucks yeah

and after two months two three months we

said why we don’t move together i wanted

to move out of my house

also alejandro and we ended up renting

an apartment and we lived there for over

two years

it’s probably cheaper to rent an

apartment than to drink starbucks every

single night so

and we were working we were working in

and

we were tagging the drag queen in orders

that we were picking up

sometimes spent one two

or three hours

so were you

yeah were you guys were you guys all in

on this were you guys working

on the side like also or did you guys go

full fledge into hamper app

so the first year it was um

like any startup um things that you know

you’re gonna pick up 50 orders 60 orders

overnight

will applause if you actually do that i

mean it’s really hard to do yeah if you

you’re starting up an online presence

and nobody knows you um

the

the beginning was basically me waking up

around seven to seven

uh 7 a.m

pick up the orders right and then during

lunch

in in bank at that time i was a banker

he got the orders during lunch and then

at night basically me and george we used

to pick up the orders together so we

used to buy the areas in different

different areas of miami and we

we actually we were picking up the order

so every single night we were picking up

orders and every single like laundry

lunch i was picking up the orders at

that time honestly we didn’t know

anything about like what it was

naturally logistic

and how to be more um like profitable on

that site

so we were

actually imagine like the whole miami

area

we had that area the whole the whole

schedule opened

so we didn’t have no way to filter the

areas so

having all los angeles or orange county

all together open

miami the first year and it was

it was a nightmare actually it wasn’t

actually in anywhere because we were

like picking up orders really early

uh dropping off the orders in the

laundromats then it’s staying till 2am

uh working on the

on the app basically

holy cow

we made a mistake of opening the radius

sometimes driving one hour just for one

pickup

and then had to drive from west side to

east side

but right now our system we select the

zip codes and the hours that we want to

pick up

and

and also in the beginning what we did we

had the

back all you can put inside so we were

charging jasper back instead of per

pound

i know there are some companies who they

still do in that route but it didn’t

work for uh for us we were picking up

and we saw the people wait a minute wait

a minute putting more and more and more

and trying to push the most they can

it was made to

put inside 20 pounds but

don’t ask me how but sometimes they put

up to 35 pounds yeah yeah

yeah people get very

you know ingenious when they’re trying

to save money it’s fun to get get like a

deal they come up with stuff

okay so

when you guys were first starting what

did you guys do first did you did you

build out a website first or what was

your first

thing that you did when you decided to

start this company

going back

okay the the first thing that we do that

we did back then was

we launched the ios app which is only

for iphone users okay

and we didn’t have anything on the

website only marketing

and we didn’t have anything for android

so we started testing on ios which it

worked out

[Music]

it worked out the people was using the

app and we said we are not going to

release the android until we are sure

that it works and after two years

put a form inside the website where the

people and us

any anybody it was not connected to our

system it was only a form

that

you put your name you put either laundry

or drag dry cleaning and you and we

receive the email actually a month ago

we just released our web app if you go

to hamperapp.com you can actually it

will be connected to our system

oh that must have been

difficult to have orders coming in

through the app through your system and

then other orders coming in just through

a form that i’m assuming just emailed

you right like the

the results of the form or whatever

people filled in and so you’re having to

juggle between the two of those

yes but actually um

it’s kind of like

funny but

when we decided to do um the technology

side of the company right uh and the

main idea was to build the app first is

because we actually noticed that most of

the visitors based on the data that i

was getting from my parents laundromat

it was the most

people were searching were in the model

and it was through an ios device

so we were like okay so

if people are searching for the mobile

and it’s an ios device

let’s just focus on the ios um

ios version of that of the company so

that’s the reason why we decided to do

ios first and afterwards we decided to

do android

we we

right now that we actually uh launched

we launched the website

uh we see some traffic coming in through

the order so through the website but

most of our clients are more focused on

the actual experience on the ios

mobile version and the android version

than actually or into the

website

yeah it makes a lot of sense it’s a lot

more convenient that way

uh what and it makes sense to do the

iphone first because yeah i mean

obviously

majority orders are coming in

that way

what uh

oh man i was just gonna ask you a

question

yeah it must be getting old

draw a blank okay well it’ll come back

to me

oh i was gonna say yeah yeah okay i got

it back i’m back my youth is back uh

okay so what

how are people finding your app at that

point

so we we

um first we did our website right and

the website was just a regular um web um

printing where you can

template where you can just download the

app version

and that’s how we’re getting uh the

leads at that time google google adwords

didn’t have what is right now

um didn’t have extensions for apps or

even campaigns for apps itself

uh that was in

2017-18

and uh what we come what we notice is

that basically we were

targeting the clients and basically

retiring again about to download that

the app

um a lot of people told us about yelp

and we actually tried gel for a whole

year

and in miami market obviously for us

unfortunately it didn’t work as well as

in other markets

but

for us

when we saw the analytics side of the

company

based on the data we were getting from

it we noticed that the adwords campaign

was actually more productive than than

actually uh

from the actually uh job or even uh

social media campaigns that we were

trying to yeah

so you’re running ads to like a landing

page basically yeah like a landing page

uh at that time yes at the time yes we

were like launching to the home page and

then people just click and then it was

directly to the apple store or the play

store and then one

[Music]

yeah okay yeah that’s that’s cool i mean

i think that’s a great

great system to have

um okay

glad i remember that question yeah

and back then you didn’t have that many

competitors now nowadays in miami where

we still run the operations

we have companies from europe

companies from us so it’s a very

competitive market

which

we like because we need to

compete with them and and actually

two years ago we had to hire somebody

for seo

because we said we can not only depend

on google adwords

and we’re also doing facebook adwords uh

facebook ads and instagram advertisement

and we’re

we’re going to start testing other

platforms like twitter

which we haven’t start but we want to

start

recently and

sometimes what we used to do a few years

ago we used to text the customers right

now we have the system who they can send

the sms text in

and also

something that it really worked out

since we have an app set push

notifications

mm-hmm

yeah yeah

um what we have noticed is that yes you

can send certain emails but when you

send the text notification or even push

notification you have the ability to

know exactly what the clients actually

look like looking and what they actually

want um

if they just open the app at certain

time and waiting and place the order

um sometimes when you do web web like

the word version in example sometimes

it’s just uh yes you can put some

i don’t want to be that technical but

you can put some uh events or or

something

that tells you you know the clan was

there certain things but

saving the data and and actually having

that data

going to it

that database and you can make decisions

based on that then actually

is what makes us right now successful in

certain markets yeah

yeah yeah super smart and you can tell

where people get stuck like if people

make it to a certain point and they

don’t they don’t go past that for some

reason then you know you have a problem

there somewhere

yeah so there’s a lot of or your offer

is not right or whatever the case may be

but gives you a lot of information

that’s yeah that’s super smart yeah and

i think there’s something to be learned

just for

you know regular owners or operators of

laundromats or laundry you know business

uh laundry service businesses who are

doing

advertising and stuff just paying

attention to

the data and paying attention to how

customers are behaving and interacting

with you online or through the apps or

whatever

yeah or offline actually too like i mean

you can notice if people are asking for

your stuff on delivering or they’re

actually asking for more if your area is

more protected to the laundry people

that walk in

so maybe that the

campaign that you’re doing for longer

service maybe it’s not that effective

because you know that you’re

you you have more wealthy aims then are

actually longer sellers coming in

so um

it depends on the market obviously

certainly it’s you

in brickell let’s say a brick or area or

downtown area you don’t expect people to

come in and watch your clothes you got

me you expect more control service like

a longer service or driving in service

but you go to a neighborhood area

where people are making around 30 to 40

000 a year uh you expect more walk-ins

that you know that they watch your own

clothes now

like i said like

checking your data checking the what’s

actually coming to your site and whether

clicking exactly and and having that

history i think it makes actually a

difference it could improve your

yourself really well

yeah yeah super good yeah and you’re

right online and offline be paying

attention to how customers are behaving

and how they’re interacting with you and

you know those demographics tell you a

lot of information about what to offer

and that’s really like i think a lot of

times

as business owners we forget

you know it’s not it’s not what we want

to offer it’s what the customers want

and need

right and so the best source of that

information is getting it straight from

the customers right either asking them

with surveys or paying attention to how

they’re behaving and how they’re

interacting and you know what their

needs are

um so yeah huge super good super good

advice there super good advice

um okay so take me back you

you guys are like on your lunch breaks

and after work and you’re

hustling around working super long hours

you know probably still buying the

starbucks even though you moved into

your apartment because you’re working so

much right

i mean

what kept you guys going when you’re

you’re working that hard and that many

hours what kept you guys going

we we saw that there was a demand

we saw we were picking up

back

on the first year we were picking up

per day let’s say three to five orders

per day not that many

then we jump to six to ten

then once we get over 10 per day we said

first we need to get a bank a commercial

vehicle

because alejandro was um

most of the orders sometimes you you

don’t sometimes you don’t know you might

get a surprise

and we were also getting commercial

accounts i think one once in a while you

you go to a house and you ended up

picking 150 pounds

which does five bags

and then where do you then you have to

go back to the laundry to drop off and

then to pick up so we got a small

commercial vehicle that we is a nissan

mb200

and then a few months after we hired our

first driver

then right now right now we have three

drivers full time and we have two

commercial bands

nice only only for miami area which

that’s where we run the operations and

we have commercial accounts and we have

all type of customers

yeah that’s awesome i mean

i love

kind of the progression of that where

you

you grew the business to a point where

you guys felt like i don’t know i’m just

kind of picturing alejandro driving

around with a bag of laundry on his lap

and he’s like packed in with all this

laundry right uh you know and

you grew it to that then you said okay

our next step is buy a van

so you went in and got a van

and you know from there you went and

hired a driver and then kind of went

from there hired a couple more drivers

and bought another van and you know and

that’s how and that’s how you scale

right that’s how it works

um okay so

you’re at what point i mean do you guys

still have your same jobs is that or are

you guys doing this full time now

uh i’m doing that full time at the

moment and then george is actually moved

to dallas right now recently he got

married so hey congrats thank you that’s

why we are expanding in austin and

austin and houston

area and i need to find a local partner

here in dallas well dallas is so big

that i think that we will need at least

four partners yeah yeah

yeah awesome so

so um

we decided uh

what we decided to

to start what was the question i’m sorry

oh man that if we if we quit that we’re

jobs oh yeah are you guys still working

yeah

in 2019

yeah i quit my job

uh three years ago and and yeah

of course the first year is kind of

tough

because putting a

job that actually you know is paying

everything

it’s kind of tough how to

go down a little bit on my expenses but

i you know i i know the hamper app is

gonna it’s working and it’s gonna work

in the future

and basically uh

i did

decided to dedicate a hundred percent of

my time going out to hamburg and

actually

um i’m traveling to different states

every single maybe every every two

months to find new partners

and try to you know drive around the

united states basically yeah yeah yeah

that’s awesome that’s awesome so i mean

i’m kind of curious about that like

because that is a big step to quit your

job and go full

full-fledged with this thing so what

what was it like how did how did you

know when the time was right to

to quit

when you have enough orders that you

know that

you know when your manager tells you if

you’re okay because you look so tired

and and basically uh when you were

selling i was giving loans uh per small

uh loans over maybe half a million

dollars every single month

and

micro loans like 20 30 000 to different

people and and basically i was so tired

that i was no performance as good

and

the company was requiring more time with

me like i i

like it was more of operation science

once i decided to you know i’m going to

drive full time for hamper for like six

months

and then from there

we were like okay now we need to hire a

driver because alejandro has to do all

your stuff for the company

doing other stuff in the company and

everything so it is is i’m more into the

operation person and i always um

i’m happy of doing that always

uh of course as

as we have our good like if you give me

a book of accounting and you give me

you know finally the expense of this and

and why is uh you need to pay your

payroll and all that for me that’s not

my side you just hand it to jorge right

yeah yeah i can do that no problem here

you go

yeah exactly and and and

and now is is i’m more into the

marketing and yeah

and basically managing other other areas

of the of hamburg right now

yeah at the moment

yeah

yeah well i mean maybe you guys can talk

to me a little bit about too like so

quitting your job is a huge step right

and that’s you know to be honest with

you i talked to a lot of people in my

coaching consulting calls and that’s

their goal right is to quit their jobs

you know to run their own businesses and

you know have

i mean i think i think a lot of people

don’t realize how much work goes into it

you know to get there uh sometimes but

uh but i mean that’s a huge goal but

another big step is making that first

hire

you know hiring your driver for the

first time can you guys maybe talk to me

about how

you decided to make that decision and

how

how it worked out i mean because now

you’re adding on

more labor expenses right

so you got to make sure the business can

support that and you

you know you got to be supported too

you know with your

you know your expense your personal

expenses and stuff so talk to me about

how you decided to make the hire and how

that how that went how you guys did that

so hiring our first driver was not as

difficult now that you have still

the government supporting with coffee to

certain people and

at least in inferiority that now the

minimum wage is rate is going up

from 758 an hour to 10

10.50 which is nothing compared to

california yeah

around 15 an hour so

at least

two years ago no wow three years ago

when we hired our first driver

uh it was not as difficult we we went to

craigslist.com

back then you used to pay only 2025 for

a net right now it’s 45 50 dollars per

app

and

we interview i would say four or five i

don’t remember that that many until

that same person who started working

with us right now he’s our logistics

manager so he handles the three drivers

because we’re busy running the company

and we’re busy

spending on other areas of the company

that he handles the drivers but

right now hiring hiring a driver

kind of difficult at least in our area

because

number one

interview time they might not show up

they will say

i’m ready i’m ready i need the job does

the job that i want so much flexibility

yeah

and then they don’t show up then they

might show up one day or two days

yeah and

the

the training part was actually

right now what we do is that we spend at

least one one week with the driver and

the driver the manager right now spends

one week when you

a new driver

and

and basically that’s how we train them

um our platform right now we have a

driver app other than the ios app

and the user app we have a driver app

specifically that tells them exactly

what orders um

and we’re trying to make it more easier

for them to don’t think

exactly where to go what what what

exactly what order they have to you know

pick up first or drop off after so uh

right now corona resistance does

everything so we are um even uh being

more uh

investing more in that side of the

company

because uh we have noticed that more

like clients in 2017-18

doesn’t expect now what you know clients

currently they do expect like this

freaking eta

at 20 10 and 10 p.m you know why we’re

working into that like that private

company we’re working on um making more

into the

micro

micro management of pretending exactly

that kind of what time around what time

the driver is going to arrive and

exactly the location of the driver

more than ever now clients are being

pity on basically they want to know

exactly like so they don’t spend two

hours in the in their house for nothing

uh we’re working right now on that on

the parallel company and make it easier

for the driver so for us is the training

part of hiring a new driver

is not a heart the hardest part is

is finding the person that actually want

to spend

the time

on the training and actually

uh doesn’t wanna

you know actually wants to work yeah

i think everybody’s feeling that pain

right now there’s a whole lot of heads

nodding with you as they’re listening to

this because i think you know not just

laundry owners and laundry service you

know providers but you know across the

board everybody’s struggling with

getting people to hire and it’s you know

you can easily get your hopes up because

somebody seems very enthusiastic and

they seem like a good candidate but like

you said a lot of times people don’t

show up

and you know it’s it’s very frustrating

right now so

a lot of people can you know identify

with that and hiring drivers i think

in general is is difficult anyways for

whatever reason i’m not really sure why

that is but

for whatever reason it can be very

difficult to hire drivers specifically

too

yeah

i think the hardest part is when when

companies they want to hire drivers when

they

request them to drive their own vehicle

um i think it’s a lot easier when you

when you provide the vehicle and they do

the math actually and you they end up

earning the same thing and they end up

done for like for example

or each or stuff like that

they actually do the math and they

measure the how much they spend on gas

the creation of the vehicle and all that

i mean

i sometimes even make more with with

like a delivery company that actually

provides

the ban so

if anyone is hiring someone and of

course they need orders um i i would

recommend it to hire with a band

it will make the hiring more more easier

actually

yeah like our drivers actually sometimes

when the vehicle is out or tires out

they

they always ask for the gas if they

spend if it is like ten dollars or

something on gas

uh they they’re telling us look you know

are your reimbursement that money back

to us and we’re like young because you

actually drove those for him for the

company there’s no problem but

they they always behind okay when is the

vehicle back to operation because they

know that you know that’s how they make

the real money

but only if you have the volume if

you’re starting

on the pickup into above it’s not worth

for one two three like we said in our

first year we were doing just five

orders per day which it was not

overnight

so in the beginning

if they want to test the waters

the manager somebody helping out the

laundromat they can start doing the

first pickups and drop-offs and actually

it will help to learn

to know who’s your customer

yeah data you can get a lot of data

there’s but getting to know

the neighborhood where you’re picking up

getting to know the first customers who

might

more than willingly if they like the

service they will refer

they will remember

so we get some um

some reviews online not only we we like

the the service we like hamburg but they

also

remember they put the name of the driver

or the person who picked up a drop off

yeah

yeah yeah i love that and i you know i

think there’s a there’s a lot to learn

when you actually do something

uh yourself and i had another guest on

walid

uh who

has a pickup and delivery service up in

new york and or a business up in new

york and he you know he recommended the

same thing hey you know drive for a

little bit so that you know

what it’s like you get a feel for that

you get to know your customers

especially your early on customers

and you hear direct feedback from them i

mean there’s a lot of perks to it so if

you can do it

you know there are there are a lot of

perks to that for sure

okay so take me back to

miami and your business so you

you know alejandra you’ve quit your job

and jorge are you do you live in you

live in texas now i moved to texas two

months ago i decided to start doing my

mba

awesome uh in university of austin

they call it uh duty

and

the main the main reason um

what i moved to dallas is uh

number one my mba my wife’s family they

live here

and i actually love love the city i love

the state and

i’m i want to expand into the midwest

area

there’s a huge opportunity there’s a

huge potential here and i want to get

partners here

i still

i haven’t quit but i don’t have a

nine-to-five job

i can i can work i can answer calls i

can

i’m right now i’m more into

just getting sales for the company and

managing the sales team

that’s my main role in that company and

i believe i believe in hamper app

we have personally invested

a lot of time a lot of money over six

years

and

i don’t pay myself nothing yet so i’m

hamper app and we keep reinvesting

right now we have the

we are able to hire six full-time uh

developers

five six years ago we only had one right

now we have six full-time

and we have also one that is the manage

the whole team because we need to have

the web the website the web app

we need to have the

iphone the app we need to have the

android app

we have the driver app

we have in the store

the pos

where the partner they need to update or

any anybody who does the order need to

update

the the actual order because you you

need to charge

your receiver back

and then if you have a

laundry item like a comforter

or anything that you need to update and

and

so i haven’t yet but i

i’m full committed into the company and

i and i see a huge potential

[Music]

yeah i think

yeah i think there’s a lot of benefit to

you know move into a new area and and

starting to develop relationships there

so okay take me back just for a second

uh okay so you guys i mean you guys

developed hamper app for you guys right

and for your business

tell me about when you decided to kind

of branch out a little more what made

that

what

what gave you guys that idea to partner

with other people and you know license

out your app

so what happened was that

um i i focus a lot of the seo and the

marketing part of the company

and when you start getting calls from

your competitors

asking you hey we like like how can i

join you guys

like and we’re like oh we don’t do that

or or they’re asking us um

and me and george we were like okay so

let’s go and expand to this market which

is like two zip codes away from us

and then we’re like

we’re like okay no but we need to focus

on one market first so what do we do

with these clients that we have in that

market

right and and we were like

we actually didn’t study and actually

was a local study

right

and we were like

let’s let’s go to

let’s go to different language owners

right and let’s ask them right

will you join this platform

or and and basically our idea one of the

ideas was either

in the beginnings of hamper i was

open the platform for everybody so let’s

say that um

you’re in that set code of

331 and you have like three laundry

months and around that area so basically

they can’t download that and they will

see the three three uh three london mats

right and the issue that we notice and a

lot of london demands owners they know

is that

when you have a laundry like a kind of

laundry

what exactly is your competitor lowers

up the price per pound like for like

five cents or six cents or 10 cents and

they’re in the same platform

so what happens as a client myself i

would go and i would check it out i

would like check you know what like

let me check how how well they do the

work now

what’s going to happen is that the

client is either going to get confused

between choosing different laundromats

right

and the laundry owner is going to lose

that client itself um

what happened if you actually like that

service so you you’re into a platform

that basically is not commitment to to

one one laundry so a lot of the laundry

owners were asking us okay so if you

want to work with me you need to give me

all this area

right obviously for us we noticed also

that

covering all the big areas are

impossible because of success

right

so right now we have around in miami

area we have around

probably like four corners

um in your city in my city

in miami-dade we have four

four different partners that basically

work with us and provide us to

well we have actually five we’re not

including the commercial uh site that we

have

and that’s the benefit of our platform

that we get a lot of leads of everything

so um

we have um around we worked with four

different laundromats

operation site in our site

and

and basically the

serverless sorts certain circles to

other partners but going back to your

question how when we decided to sell

or or provide other other laundry owners

our platform it was when people were

actually asking us

asking us to join and and we were like

sorry we don’t or or we were like

we don’t have the way to do it and

that’s when we

when

george and i decided to go to the clean

show

and

and go with the demo version of the

tablet

yeah

because you know you have you have two

options

you want to expand into a new territory

into new city

either you buy a laundromat or you

partner somebody

you get a wholesale price with somebody

but then you need to

hire your own drivers in the other area

and it will take at least

four

years for what we were expecting to get

sales of

30 40 000 a month per month

so we said we have developed

such

technology

and there’s a

more opportunity for us to keep

investing most of our time and money

into the technology side

we already had a and on the marketing

area and

right now we have a customer support so

we can provide all these tools for

existing laundromats who wants to start

doing pick up and drop off who who wants

to start doing deliveries

right now

we we back then we had a big territory

in miami

we had people interested and we said

okay so you you won miami beach

you can have this area this other person

this other area

and now they’re running and

we take a small commission and everybody

wins but they have access to

to our features which is a technology

side

the customer support

we answer calls from 7am until midnight

we have

three people right now working full-time

maybe if they watch the video in a

couple of years

we might have more people we will

require but we’re working on the

technology side so they make

less goals we keep improving and we see

why we get the calls and why is the

people calling

to to improve our website and to improve

our driver app

yeah

i mean it’s awesome i mean you guys have

grown up the platform a lot i mean tell

me about your experience at clean show

what was that like and you know how did

that help you

you know kind of launch your

licensing your partnering side of the

business

we went to our first show to our first

show

this show is every four years correct i

think it’s every two years

except for covered years and okay so we

we went to our first show

in georgia which was like six six years

ago or seven eight years ago i don’t

remember the time right now we were just

going to look but our first show where

we got a booth a 10 by 10 booth we were

exhibitors

we wanted to test the waters we wanted

to see talk to talk to other laundromat

owners to see if they liked the idea

and

we had we had um

we only got two partners from the show

which you right now

have launching a new partner into our

system it can take us a few minutes back

then we didn’t have it and they wanted

to have the android

and we they used to ask oh are you

available in android 2 are you available

in android and we said no

so that’s something that they

they wanted to

release in the area

oh i want the app tomorrow i want the

app in a week and we said

we’re still tweaking and we haven’t

released yet it’s going to take us three

months and that’s something that they

didn’t help us but it helped us to

understand what the actual

operator or what the actual new partners

and we are we we can’t wait for next

year we already got a booth for next

year

and hopefully

awesome at 20 30

who knows how many we can get

like like your sense again like we went

to the

show and we were um like

like we actually went to expert it was

kind of like inspiring to know exactly

what’s out there and me and george we

were like okay we’re gonna spend this

amount of money to get a booth

but we’re gonna

like sell it as as much

as we can and actually work and we got

any a lot of feedback of other other

london owners which was a good time was

harder right now you can put a form

online or question and obviously

you’re going to get a lot of feedback

but back then there was not just thing

as a form a podcast or either

or even a um a uh

like someone that can actually guide you

on how to start a technology company on

of a laundry service right

so that was actually a really good

experience um going there and we’re

excited about going back there with

everything that we’re going to show up

and actually i would love to send you

the picture of our booth so maybe you

can show it here so yeah

yeah definitely do that

uh and i’ll i’ll include it

real quick i haven’t asked you this yet

um i think i know the answer to it but i

haven’t asked you

so when you guys started this business

and you started picking up laundry and

doing it

how was the laundry actually getting

done

who was doing it where was it getting

done

the laundry was actually being done in

my parents laundromat

and my parents are used as i started a

podcast they’re really hard when it

comes to business

and hard decisions so

i agree in a price per pound with them

and basically we’re making the margin

out of that

actually

honestly and i’m telling you straight up

the truth i uh

we went to different laundromats

before

and a lot of launch events

a lot of london

and mats they say no to us really yes

because they didn’t know about this

remember we’re talking about 2017 when

there was not not just as technology and

i think watch club was getting into our

market and and there was nothing much of

of the idea of picking up delivery as

right now as 2021.

yeah but it was uh my parents actually

does uh some of the laundry laundry and

then when we got into a certain volume

we just started getting more partners

that actually uh cover our areas that we

carry on

and and then

basically after they

grow up their business then we decided

to get another partner obviously we

talked to them all of them our partners

and tell them look

uh you still gonna keep this volume of

your laundry so you know

stop you know don’t fire anyone you’re

still going to keep this amount of

laundry um just that you cannot

provide that much of a service with us

so we decided to take it to another

laundromat

and then the other laundromats you know

basically uh is following the other ex

seed of accounts that they cannot

perform now we have commercial accounts

um that basically give us around 500 per

day or 600 accounts per day

and and it’s amazing because we have

pounds

yeah yeah 600 pounds per day and we have

a truck

that basically

i would finally fix it up and fix them

up so we work with partners that they

don’t want to they don’t focus that much

on the technology side which we do on

the sales part

and then what we do is we provide work

to them

so sometimes the headache comes to the

longer order when they trying to start

everything by himself

and they don’t know where to start and

that’s the hardest part

yeah yes i mean it seems like a good a

good partnership there because you guys

have the infrastructure built out and

are able to offer that

and other you know other people who have

you know

the the physical assets

for it you can partner with them to

you know

it seems like a good a good marriage

there yes and also like if you consider

i don’t know if you uh i um

we have my friends laundromat that we

provide them like around six thousand to

a thousand pounds you know per month in

that area specifically

just having that amount of cells extra

coming from outside your door

how much value brings up to your store

yeah

that’s not surprised that people were

turning you down if somebody’s like hey

i want to come do a bunch of laundry at

your laundry i’m a laundromat i’m like

yeah okay like exactly right and

a lot of a lot of

and we go to

we go and target different markets that

actually they’re doing pick-up and

delivery right

and we tell them look we like to work

with us and they’re like no we have our

own brand we do our own pickups and all

that and we’re like okay but

we don’t like more clothes

to pick up

you don’t like they don’t lose anything

right and the good thing about our

strategy in this case is that

most of our traffic that we’re getting

right now

so that

so we we

our main focus right now yes is

marketing but our branding so

we get around

i think 120

135 000 uh impressions per day in the

whole united states for free

and and we’re getting these from las

vegas from uh texas dallas and san

antonio los angeles and sometimes those

orders cannot be performed because we

don’t have unfortunately no partners at

that moment on that market

yeah

yeah but yeah well you need to get those

partners let’s get them going

isn’t it slipping through your fingers

yeah and actually uh people that

actually uh

trying to do pickup and delivery or have

an extra income you know it’s a good way

to start

or if they’re doing their system laundry

mat and they have their own laundry

service and picked up on delivery

and you’re not picking up enough

you don’t lose anything working with a

platform like hours

right so it’s a good way to

to work with like to get more income

yeah

love that uh

okay i mean super cool i mean you guys

have like a lot of cool stuff going on

it seems like you’ve built up your your

personal

side of the business uh you know pretty

well and then you’ve just started to

kind of expand out by partnering with

other

owners and now

you know

do you still you still are you still

doing your

stuff in miami your

pickup and delivery business

yes we still run the operations uh in

miami certain areas of miami

which is it’s not a

very big city but we have divided in

different with different partners but we

still and that’s where we have the three

drivers and the two

bands

to be able to cover that area

and

that’s a recommendation for anybody who

wants to do a pickup and drop off

most of the companies what they do is

they pick up in the morning

so if they just want to open in the

morning or certain like two hours in the

morning usually seven to nine

is not as competitive as

working on it on a saturday and

maybe sunday too or at night

that’s something that we stand out in

miami and some of our partners they do

the same but not all of them because we

give them the flexibility to choose

which hours they can work

they tell us

when they expand and they have more

orders they will expand the hours but

definitely something that how we stand

out with so much competition in miami is

that we have two two um schedules in the

morning and at night so from 8 to 12

and then from 6 to ten

yeah

that’s awesome and that’s a good tip too

you know looking for

gaps in the market where there might be

availability and opportunity

you know to to pick up customers that

aren’t being served right now because

people are picking them up in the

morning and not in the evening or not on

the weekends or whatever the case may be

super smart love that i love that but we

already did that mistake

and also we did that mistake that opened

too many hours when you also give too

many options to the customer he might be

i can have them anytime and they don’t

schedule anything in advance and they

expect

that you show up in in 30 minutes 20

minutes so

it’s a balance but

before we even before we even started

licensing our system

we had

10 000 of orders in prior experience

before we

right now we have done more than 20 000

we’re talking from our personal

experience and like alejandro said

we’re learning from different states

right now we are in garida

most of our partners 60

are there and then we have in california

and also in texas so

we’re still need to learn from other

states like new york and definitely we

will learn and

and the the us is a

huge market

what um one of the tips that i would

recommend that george was talking about

is that don’t mind on increasing prices

rising because

um when we started the company we were

i think was 129 per pound

or something and

and i was like no no george don’t raise

the price because we want to be the

lowest one in the area

and honestly

sometimes um

it’s not the case and people actually

don’t want to order with you because you

are too cheap

and and that happened to us in in south

beach actually

one of the marches that we were starting

with right

and we were charging 139 per pound or

149 and we were like okay you know this

market charge usually 169 179

at that time we lost a driver

unfortunately and

we raised the price crazy high because

we didn’t want no orders from that area

trying to

deter people from ordering exactly so

then what happened it was the opposite

it was the opposite so the opposite was

that we got a huge volume from that area

because of that reason because of the

of the

increase of pricing i think the official

price it doesn’t have to be too high

of course

like but

like it has to be on the market price

don’t go

from this price increase in prices

depending on your cost

or expenses yeah the the first first um

perception from the customer might be

like oh they’re not going to do a good

job because they’re only charging me 130

140 per pound but

[Music]

learn your market study your market and

once you know that most of if you have a

competitor charging two and another 150

you can do 180 190

yeah

yeah not sorry for not thinking that 125

i’m gonna take all the market

right

yeah i think that’s a really good tip

you know we talk about this a lot how

a lot of people are afraid to raise

prices and it’s just funny how you guys

kind of stumbled on it by trying to

drive away customers you’re like oh

we’ll just jack up our prices and then

we don’t have to worry about that area

until we have a driver again

uh but the actual opposite happened and

i think that i think you’re right the

perception

is is key and that plays into your

branding also right like how people

perceive your brand

and the pricing they’re closely tied

together

you know if you’re branding yourself as

you know the

the cheap option

then

you know

that might appeal to some people but

uh you know

that may or may not be the demographic

you’re going for and it may or may not

be the best business model for your area

too so and also the person that is

paying 129 pounds

sometimes

is expecting a lot more

or like discounts and all that on your

service than actually the person

actually paying 179 199 per pound one

two

only five per pound and he’s different

i’m talking about pricing in miami so um

it is it’s a lot different so

right now we

we recently raised prices

again

and

honestly we didn’t see that much in

effect the first month uh and we went

back to the regular sales

so of course you’re gonna lose like

anything

also when you increase your bending

prices other

persons that walk into the laundromat

are going to go to they’re going to

complain about the extra quarter

but when they notice that the difference

of service that you’re getting from from

that 25 cents

what makes the difference is

the ac your tv is working the machines

are clean

and the same thing as the pickup and

delivery right you’re on time

and the closest ones correctly but when

you open the mic back it smells really

good

so all that makes and actually worth

the extra money they’re paying for so

yes they leave but they end up coming

back because of that uh because of those

without those reasons

yeah providing that value is

key you can’t you can’t charge whatever

you want to charge if you’re going to

give terrible service right

that’s that’s how it goes and i think

that’s why a lot of you know the best

people out there the best business

owners out there

say hey don’t you know don’t be the

lowest option out there in fact be be

one of the higher options out there but

just provide

more value than everyone else and people

will be willing to pay the price because

you know it’s worth it to you know pay

and you know we’re talking relatively

small amounts right an extra quarter

extra dime or whatever per pound

you know but if the quality and the

service and the experience is that much

better people will definitely pay it

yeah

and and

we suggest on that turnover time

to keep it on 24 hours

how come

[Music]

let’s you

how come because we have some of our

partners who have uh tried 48 72 hours

and they don’t have that many orders

compared like people don’t want to

to have their their laundry

for three four days

somewhere else like they want to have it

back

the next day

we also have a subscription service that

some of those customers they can they

say okay we can get back next week

it’s only less than one percent but you

have all but people they want fast not

the same day service not overnight only

commercial accounts

which they need their stuff back to to

work

and

but for the regular customers like

they wanted to have it the next day

that’s that’s what we recommend

yeah awesome good tip awesome tip

all right we have a section of the

podcast called secret sauce listen up

it’s the secret sauce

and secret sauce is just

what’s what’s something that you see

working either in your guys’s business

or in one of your partners businesses

what’s something that’s working uh for

pickup and delivery right now in terms

of even either

you know gaining more customers or

improving efficiencies or or anything

like that you got any tips for people

running pickup and delivery

uh well what i would recommend is work

um if you’re planning to build up your

own brand

right uh work on your your branding

that’s my my tip number one uh

i think

google could be really

expensive if you don’t do that

so that’s something that i would highly

uh consider to recommend to any laundry

mart owner

my side of the company

uh obviously there’s other things that

like the branding is the most important

part because uh that depends on how much

it’s gonna cost you in the future

that click of that client

i don’t know george has any

yeah something that on the pick up and

drop off

talk to

the driver or if you are picking up a

drop off

make some

cards at least our bags

they’re green and i will show it i will

show you in a minute

and anytime that you walk in a hotel or

an apartment building or

when you park your vehicle if you have a

rapid band they will ask you oh what’s

your company name can i know more if you

have a card with a five dollar coupon

and and with a promo code

and and you can give it to that person

that works

that will work because they’re taking

something physical or they will take the

picture with your qr code taking it to

your website and then they will they

will remember like that

yeah i love that tip that’s a i mean

both of those building up the brand and

it kind of goes hand in hand right with

the green bags and you know the rap

vehicle and all that stuff but you know

having those cards where when people do

ask you the questions or give them to

your drivers people do ask those

questions it’s really easy to just hand

that card now they have your web address

they you know have the way to get uh in

contact with you they have a way to

download the app they have your

you know your business name so they can

search you um super good super good tip

but

give a small commission to your driver

give him a box

and he will he he can make twenty thirty

dollars extra per week and he will be

extremely happy oh nice how do you keep

track of that

by the promo code

if he’s let’s say his name is nick we

write nick five

and

when when we get the report every week

when we have to pay the driver we can

see if has anybody use that code

oh i love that

and if you have a driver or or if you

love to talk to people and you have the

time

talk to the the person who works in the

lobby

if you go to a hotel and if you’re not

make friends with the person with the

concierge and tell them about your

company

don’t be afraid of that

they’re actually they’re looking for for

people who they can refer to

i love that right yeah at least right

now locally in miami in miami beach most

of the hotels

they recommend us and

because

our drivers talk talk to them

yeah super good super good secret sauce

i love those ideas really really clever

really good and is the uh the promo code

thing is that integrated within your

system

yes

yeah super cool love that

all right we have another section

called

pro tips pro

tips

and pro tips is maybe maybe an operator

say there’s a laundromat owner who

wants to get into pickup and delivery

you have any tips for them on how to do

that the best way possible

yeah start doing it enjoying our team

i mean if they don’t want to

if they want to do pickup and delivery

tomorrow

and they are in the market where we’re

not

then we can open their area

and in one day

listen one day

how fast they answer the email i think

we can have that area open for them now

the

the difference is that

building up like the brand part

it takes a lot of time so i definitely

recommend them to if they want to do

pick up in the day tomorrow and they

want to test the waters

definitely to contact us and and you can

actually you know help them out

if not

they can

they definitely need to have a website

and they need to have exposure to social

media

and then they need to look for a

platform who they can help because how

many orders can you pick up to the phone

if somebody calls you

so you need to have a platform

it could be

the best option a company like us or any

other company but they definitely need

to have a software

to be able to

to have a list of the order that they’re

going to pick up that day

and you need to call that person because

one two three four max you can do it to

paper

and and but then

you need a an actual technology software

to help you

and

so you need to have that technology you

need to have the marketing

and

you need to have a

you need to be very you need to be able

to answer the phone at any time because

you will be getting calls

but like alejandro said we can cover all

of that but if they want to try it

after they get tired of doing that they

need to and if we’re available in their

area

where we’re a good option and we

we’re willing to talk to anybody

our website www.humberapp.com

and they can find out more information

and

we have we have done

over 20 000 orders already we’re doing

over a thousand orders per month right

now and we keep increasing our areas we

keep learning

and we

like i mentioned before we have six

developers working full-time

and we’re growing the team

exponentially to be able to to call to

help new partners

guys that was awesome and uh man i you

know i’m gonna put that link that you

you know just mentioned hamperramp.com

in the show notes if you’re on youtube

they’ll be down below in the description

but i’ll have all that in the links to

everything that we talked about here uh

will be there so make sure you check

those out guys is hamperapp amp

hamperapp.com is that the best place for

people to come find you if they have

Links from the Show

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