The Christmas tree thread and my comment about the cost to grow and cost of sale when looking at the business model and trying to figure how they make any money, reminded me of another business.
A few years ago I was at the Beach in St. Pete with my parents and family. My mom wanted to rent one of the umbrellas at the beach and my dad talks to and makes friends with every-damn-body!
He got to talking to the guy that does the umbrellas and come to find out that it’s his summer business. He has an inventory of about 100 umbrellas, a DeWalt battery drill with an auger bit, and a fun loving hustle attitude.
He brings an umbrella to your spot, drills a hole, stabs the umbrella, packs it in the sand with his foot. Shoots the shit with you and then goes to the next.
I don’t recall the exact rental price, but I think it $25-$30 for the day. He’s on the beach hanging out where he wants to be, on one of the busiest beaches in Florida. Spends 7 days a week for 3 months and goes to Bimini for a couple of months to do the same and then does whatever he wants.
Let’s look at the numbers.
Call it $25/ day. 7 days a week, 12 weeks and say he averages 80 umbrellas a day. Thats not a stretch at all. It wasn’t that busy that day and he had most of them out by 10am.
Thats $168,000!!! His inventory cost is a drill, and a stash of umbrellas! Call it $20k for some good umbrellas.
He was a happy MoFo!
