November 09th, 2021
The Pallet Business Vs. Your Job
Hey everybody. It's John owner of the simplest biz. Very important video today. But first subscribe to this channel like this video. If you find it informative, ring the bell on the YouTube channel and also go to the, either thesimplestbiz.com or thesimplestbizforu.com/info
To get more information once you've watched. I've been wanting to do this video for a while. And what we're going to be discussing today is we're going to compare your current situation with either your salary or your hourly wage and compare it with a calculator and pull that out. And we're going to compare it to how the simplest biz works and the reason I'm doing this, I got a couple Post the other day inside the Facebook group.
I want to share those with you to give you an idea of why I want you to understand this and how important it is. Okay. Let me switch over really quick. And there is a quote in my course and the training, the simplest business training. If you're interested in it, we'll talk about that later and you'll have links below this.
If you want to get more information about the training. I've always loved this quote from the course units for money versus time for money. I made six months of salary in one month. Sometimes I make an old week salary on one delivery. Thank you. So, I wanted to share that one then another one, just to show you the progression is the same individual, a Ford Explorer truck.
Trailer to box truck to adding semi-loads. He's showing the growth of his business. As he's gone through the course, learn the material, started building it out. And the growth of him allowed him to go from a, a little pickup truck all the way up to semi-loads. Okay. And why that is. We're going to pull the calculator out here and we'll pause this for a second and we're going to go through scenarios.
What you're possibly stuck in or a situation you're in and then compare it to why this model works in the way it does and the money that's available to be made by working this model, compare to what you're doing and doing. And the fringe benefit is the time freedom that comes along with it. Okay.
I want to make it crystal clear. And, and give you a, some real-world examples on this scenario. And I think it's important that you listen. All right. Let me pause for a minute. I'll switch over. All right. Let's start with a couple of examples. Common situations that people are in as far as their job and they're working 40 hours a week, maybe 40, 50, 60 hours a week.
Now, you know, a lot of people are on salary and sometimes, you know, I put 40 hours a week and sometimes that's more than 40 hours a week in a lot of cases, it is. The businesses out there sometimes take advantage of you by paying you a flat salary, but you're working more than 80 hours a week meets usually 40 hours a week.
Let's just do that math, $800. Well, that's, that's easy. It's, that's an $800 a week job, right? For 40 hours’ worth of work. Let's finish this second example really quick and then we'll switch over and compare it. And versus. The simplest business pallet business. Okay. $18 a week, 18. And then we're going to multiply that by 40 hours.
It's 720 bucks a week. So that equals.
$720. Okay. So we've got a baseline now for these two example, this is 800-DOLLARS a week. This one's 720 at $18 bucks an hour. Now this one's going to add for a job around $20 hour. If you get away with the 40-hour work week. So now I'm to pause and we're going to switch over to the pallet business and run through some scenarios.
Understand how you can multiply yourself with his business and compare it to the amount of time it takes and the money you can make doing this. And I'll even take into consideration. You know, the scouting and the time it takes to scout for a business. Okay. And throw that in because you know, there's some time involved, I'll guide you to the types of places you need to deal with and the businesses you need to deal with and what to say and everything about the business and how to work it.
And, but I want to include in these numbers, I'll use the pallet. The hours that may take you to secure that client, but the magic that happens on the backside of that effort. Okay. So let me pause for a second. We'll switch. So now let's break down the pallet business. And the features that come along with it, right?
I'm going to give you an example, 150 pallets, nothing crazy, 150 pallets from a business that needs them that are ordering them. And you're picking them up from a business that supplies them that generates pallets as a by-product of their business. And sometimes you'll have two suppliers to one buyer, you know, you're getting a hundred from one and 50 from another, and sometimes you'll have a supplier that can generate.
And now pallets to supply several businesses in close proximity as well. Let's just go by this example and compare it. If I'm able to move 150 pounds, Free and, and sell them to $6 a piece they're normal and eight let's even throw in the fact that it took me two hours to scout that business initially.
Okay. We'll even throw that in. As far as time it takes to get it done. So 150 times, 6, 1 50 times six. Equals $900. All right. So let's break this down.
So we got a $900 get. Let's say it took you two hours to find that business initially, but once you found them, you have them. If you learn that the methods, I'm teaching. And from that point forward, you don't have to spend two hours each time to find that business it's recurring business. Okay.
It's, they're running out of those 150 pallets and they're ordering again. So that effort that you've put in, in the beginning, that extra two hours of scouting to get to that business where you have that. For that one business that happens over and over and over again. We have a recurring weekly revenue based on that two hours of effort that.
Possibly years ago, you know, because I have businesses now that I scattered in 98 and I still haven't to this day. I didn't have to scout them repeatedly, they're there. Right? The payoff for that two hours’ worth of work, even if, sometimes it happens in 10 minutes, but let's, let's just say as a general rule, it will take you two hours to find a business.
That is a buyer for pallets and a and a supplier. Okay. How much time does it take moving forward? When I pull into that business and we teach you the logistics and how to set this up and be very efficient in the training as well. But when I pull into a business and they're forklift drivers coming out, it's all timed out and they're loading my truck.
Well, that. 10 12-minute process, right? To load the truck. Now it takes me another four or five minutes to strap them down, or I have somebody to help me, whatever you can do it either way. And then I'm pulling out. And the longer you work this business, the more efficient it can become. So now my travel time is going to take me for me.
It takes me about four or five minutes to get to the buyer. Let's say in the beginning it takes you 30 minutes. Cause you got to go across town and you. You're not quite as efficient than I am starting out, so, okay. An extra 30 minutes as you keep working it, you will become more fit your kids. You're going to find suppliers and buyers closer to each other, the more you work it.
I want to make that clear. We got to have that 30-minute timeframe. We've had a 10, 12-minute loading time, five minutes for that. So, we're at what? Close to an hour, 45 minutes an hour, another 10 minutes, six, eight minutes, really to unload the truck. It's really easy. There's taking them off and unloading them.
I know the five minutes to write the invoice. Let's say, you know, around an hour's worth of work on a weekly basis. For one order, we are making a $900 profit. Okay. Let's double that in the beginning because you had to scout for an hour or two. Let's say three hours’ worth of work. You're still at.
$300 per hour, but then you become more efficient because you're not having a scouting in the next week. They're ordering in your rate doing the same process. There's a baseline. But then let's talk about that same customer. What do you think they put on these pallets? A lot of them need corrugated boxes and they're buying from a company that, where they're being gouged on new boxes, right.
They're paying seven, eight bucks a piece for cart brand new cardboard boxes. Well, we can source them lightly used, but perfectly good shape. And let's go to the next exhibit. You sell that same company, so you didn't have to scout anymore. That same company would be using corrugated boxes, like I said, slightly used.
And instead of them paying seven bucks, a piece of news, they're going to pay me for 25. We teach you where to source and stuff as well. So. Th there again, you have another weekly, or maybe it's every two weeks of 200 corrugated boxes that they need to put their inventory in and then splits on the pallet, ship it out to pallets and boxes of going out the door each week.
So, 200 times $4.25 equals $850.
$850. All right. Now it's neat. We do point A to point B in this business, right. But we also are going to run across situations where companies need custom built pallets. We don't want to build them. We want to keep our life simple. I call this the simplest. So, you know, when we do brokering situations, whether it use pallets or even new pads the broker, a lot of times there's larger quantities involved stuff.
We don't, excuse me, step that we don't want to either must stockpile or we're dealing with larger companies, but we can become the middleman for that. Okay. Let's talk about that money because you'll understand just a second. How there's even less time involved in this once you get the initial setup done.
If we're brokering 500 custom built pallets, you know, even if it's once every. Two weeks, three weeks a month, regardless. And we can make a $3 profit on a custom build on a certain, you know, different sizes because with custom bill or margins for, for mark-up is higher than if we were dealing with a thousand standard pallets.
Okay. So how much time does it take to make that happen? Again? I'll teach you in the course, maybe the initial thing. Source, it's going to take you a few hours to do that, but once you have that set up, you don't ever have to do that again. Okay. But then how much effort when these orders are coming in?
It's a couple of phone calls, but I'm not even having to leave the house to execute those orders moving forward. I'm just making a cut cause I'm the middleman. And you would be as well, if you were in the position of being a broker. So comparing this business model, the effort you have to put out in the beginning, it's such a huge payout.
Are you going to have to spend a little bit more time in the beginning for scouting and me teaching you where to go and the businesses to deal with and what to say and all that? Yeah, but it doesn't have to repeat me repeated ever again because we have a recurring business model, whereas recurring business over and over and over again.
You want do the scouting for pallets once and reap the benefits for years, decades to come. Okay. So that's the payoff comparing that to a business where you are working 40 hours a week. As we stated a little while ago, we are very limited and we're trying to trade time for money. And in this model, we're trading units for money and how fast can we move units to a buyer in short order?
So here we are, we're going to compare the two-pallet business with two customers, one ordering pallets, you know, and the other one we're in corrugated boxes. We're just getting to leave out the brokering aspect of the topic for this.
Pallet order 150 per week, $900 box order ended up being 850 bucks and a total $1,750. Okay. Time average, once you got it set up, but just actually executing the order on a weekly basis over and over and over again about two hours per week. So how many orders could you stack up within a week? You know, you just, we're just talking about two orders, taking a few hours out of your way.
But there's a lot more business to be at. You can stack the exact dollar amounts up even higher and its mind boggling when people go. Ah, but you're stuck in the mode of thinking of working by the hour and I buy the unit and that's how we multiply ourselves in this business versus the 40 hour work week at 18 bucks, an hour, 25 bucks an hour, 30 bucks an hour, whatever.
And this example, $18 at 720 bucks. 40 hour for an $800 salary, a thousand dollars salary, $1,200 salary, but working 40 hours, if you're lucky, instead of the amount of money in short order, you can do with the pallet business, you can see that the winner of this versus is the pallet visits hands down.
And that's why I haven't worked for anybody for the last 23 years, doing this business and 30 years. doing the business, I did before this as well. I know I can rely on myself to outperform in this business model, and anybody working a salary job, especially when it comes to quality of life that comes into play time.
Freedom that comes into play with the pallet business. Because, you know, we had students that execute a few orders a week, two a on a Wednesday and take the rest of the week off and live their life. So I hope this helped you give you some clarity again, I'm going to repeat the simplest biz.com. The simplest bins for you.com/info.
That's for the letter u.com/info or a couple places you can go to get more from me. Look, it's up on YouTube as well. If you're not already here, but you've actually gone to the channel and see a lot of additional information. Look up the simplest bids on YouTube in the search bar. Okay. I'm leaving it there for now.
Hope this has helped you give some clarity and help you understand these numbers, but what you need to understand them. All right. Hopefully we talk so. And I teach people how to run a pallet business. Okay. I have a training course that does this. I want to teach you as well. All right. Have a great one.
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John Wilker - Owner of The Simplest Biz Training