Michael from Philadelphia isn’t your average entrepreneur. He's a street vendor who operates only two days a week yet somehow manages to pull in $1.5 million in revenue a year. His story stunned personal finance expert Dave Ramsey and listeners of the “EntreLeadership” podcast.
From A Folding Table To A 48-Foot Trailer
Michael started small: with just a folding table on the side of the road. “We started in bread boxes and we moved to tables,” he told Ramsey. Business grew so fast that, just before the pandemic, he upgraded to a 48-foot gooseneck trailer. Outfitted with shelves like those used in Walmart (NYSE:WMT), it now serves as his mobile storefront.
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“I open all my sides and I'm good,” he said. Customers pull over, check out the products, and make purchases on the spot.
His best-selling item? A five-gallon bucket of laundry detergent priced at $40. According to Michael, that's the equivalent of seven bottles of Costco (NASDAQ:COST) detergent, which would cost $175. “So yours is one-seventh of the cost,” Ramsey replied. “That's a bargain.”
Keeping It Lean And Smart
Michael doesn't have employees. He doesn't rent a storefront. He pays just $300 a month to operate from a high-traffic parking lot. And he's been doing it there for 13 years.
“We lived in our business for 10 years,” he said, referring to a warehouse he and his family used as both a residence and base of operations. In March 2023, they finally bought a home with 20% down, all thanks to the business.
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He also adapts to the seasons. Around holidays like Mother's Day and Valentine's Day, he pivots to gift baskets filled with clearance items such as Victoria's Secret perfume and teddy bears. These seasonal products sell for $60 but cost just $18 to make.
Why He Called Ramsey
Michael phoned into the show to ask Ramsey if he should pay $500 upfront for a new, custom-made light-up sign that would sit 15 feet high on his trailer. “I'm only getting a lot of my regular customers. I'm not getting new customers,” he explained.
The total cost would be $5,000. The signmaker requested a small deposit and would deliver the sign in two months. Ramsey couldn't believe Michael was even asking. “Dude, you made a million dollars. Why are you calling me? Buy a sign.”
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A Model Of Grit And Resourcefulness
Michael’s resourcefulness and work ethic impressed Ramsey so much that he declared, “Michael, you are what makes America great.”
“Anybody out there that's unemployed after you heard that story, I have no mercy for you,” he added. “He sells laundry detergent off a folding table and turns it into a million-dollar-a-year business.”
At one point in the conversation, Ramsey was so taken aback by Michael's creativity and determination that he exclaimed, “You're a freaking genius. I love this.”
As for marketing, Michael plans to brand himself as a solution to rising prices: “The way to beat inflation is to see Michael,” he joked.
And Ramsey agreed. “I think you're the antidote to inflation.”
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