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There aren't many advanced manufacturing success stories in Latin America. And globally, there aren't many companies that can build commercial planes at scale. Yet somehow, one of the world's leading jet makers is Brazilian. Embraer is the third largest maker of commercial planes worldwide after Boeing and Airbus. On this episode, we talk about how the company came to be, what its opportunities are, and what lessons in economic development we can learn from its rise. We speak with two guests for the show. First, is Richard Aboulafia, a managing director at AeroDynamic Advisory, to understand the company's role in the aviation ecosystem. Then we speak with Juan David Rojas, a writer on Latin America, to understand the political conditions in Brazilian history that allowed the company to emerge and thrive.

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Brad Jacobs has made a career of starting, consolidating, and growing whole industries. He did a trucking company. He did a warehouse company. He has a freight brokerage. He created an equipment rental company. His new venture, dubbed QXO, aims to reshape the big and sprawling market for building supplies, which can encompass residential, infrastructure and commercial real estate. And he has $4.5 billion of his and his investors' money to go out and buy and build. In this special episode of the Odd Lots podcast, recorded live at the Bloomberg Invest conference in New York City, he talks about where he is in the new process, and what he plans to do once he's made his acquisitions.

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Does it feel to you like society has gone crazy? Well, you're not alone. There's a general view that all around the world, in the realms of politics, culture, business, and so forth, a lot of people are losing their minds. So if this is true, what's the reason for it? On this episode we speak with Dan Davies, the author of the new book The Unaccountability Machine: Why Big Systems Make Terrible Decisions - And How The World Lost Its Mind. Dan talks about the field of study known as cybernetics, and the inevitable outcomes of systems that grow more and more complex. This complexity -- which describes many things in the modern world, and leads to what Dan calls "accountability sinks," or entities that basically exist just to be blamed for things that have gone wrong. Dan walks us through how these emerged in the modern world, where things are headed, and how the trend could theoretically be reversed.

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Neil Dutta, the top economist over at Renaissance Macro, has generally been sunny and optimistic about the economy over the last four years or so. But now he's warning of a possible mistake by the Federal Reserve. In his view, the central bank is waiting too long to get confirmation that inflation is coming back to target. Meanwhile, unemployment is starting to creep up in a meaningful way. As he sees it, if you're still worried about upside risk to inflation at this point, you need to have a theory about where that inflation is going to come from — and it's really hard to come up with an answer for that right now, given the general downward momentum in hiring and the overall economy. In this episode of Lots More, we catch up with Neil to talk about the risk that the Fed will blow the soft landing.

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 From cars to toys to clothes, we're just used to seeing the label "Made In China" on all sorts of things. But how did China become a go-to destination for manufactured goods in the first place? Who actually recognized that there was a huge opportunity to tap the abundant, low-cost labor to sell goods to Western consumers? On this episode of the podcast we speak with Elizabeth Ingleson, a professor at the London School of Economics and the author of the book Made in China: When US-China Interests Converged to Transform Global Trade. Ingleson traces the roots of the US-China trade relationship to a handful of US entrepreneurs in the early 1970s who first went into the country and recognized its opportunity as an export powerhouse. We discuss who these individuals were, the obstacles they had to overcome, and how they reshaped the entire global economy.

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The stock market has had a torrid run in 2024 despite the fact that interest rate cuts haven't materialized in the way people had expected at the start of the year. In fact, outside of a few blips here and there (like spring 2020), US stocks have been phenomenal performers for years. Tom Lee, the founder of Fundstrat and FS Insight has been bullish for a long time, having caught the correct side of this lengthy trend. On this episode, we speak to the former JPMorgan strategist about how he thinks about the market, what he sees happening right now in macro and demographic trends, and why he thinks it’s plausible that the market could roughly triple in the next six years.

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Everyone knows that the AI boom is built upon the voracious consumption of chips (largely sold by Nvidia) and electricity. And while the legacy cloud operators, like Amazon or Microsoft, are in this space, the nature of the computing shift is opening up new space for new players in the market. One of the hottest companies is CoreWeave, a company backed in part by Nvidia, which has grown its datacenter business massively. So how does their business actually work? How do they get energy? Where do they locate operations? How are they financed? What's the difference between a cloud AI and a legacy cloud? On this episode, we speak with CoreWeave's Chief Strategy Officer Brian Venturo about what it takes to build out operations at this scale.

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Virtually everyone, across the ideological spectrum, has the view right now that it's too hard to build things (or get things done generally) in America. New infrastructure is thwarted by red tape and permitting. New housing is thwarted by YIMBYism. Even something that doesn't require much new construction -- like NYC's attempt to impose congestion pricing -- is difficult to get done after years and years of wrangling. What is the core problem? And what can be done to address it? On this episode, we speak with John Arnold, who started his career as an energy trader at Enron, before going on to found a highly successful energy hedge fund. Now in his role as the co-founder of Arnold Ventures, he works on policy solutions to address these key bottlenecks. We discuss how he goes about philanthropy to affect policy change, the problems he's identified, and what solutions could be put in place to improve domestic development.

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Throughout history, financial markets have struggled with the issue of borders. Borders create friction, add cost and cause headaches for anyone who wants to spend money across them. On top of that, various national currencies can be wildly unstable.

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This episode is sponsored by Coinbase.

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For much of this year, the S&P 500 has marched steadily higher while measures of stock market volatility, like the VIX, have stayed pretty low. But looking at the headline index only tells you part of the story. Beneath the surface of the S&P 500, individual stocks have been moving up and down a lot. And of course, traders have figured out a way to make money on the difference between the quiet overall index and all that volatility happening in individual stocks. This is the dispersion trade that's gotten quite a bit of attention in recent months. But figuring out exactly who's doing it and how pervasive it is isn't that easy. In this episode, we speak with Michael Purves, CEO and founder of Tallbacken Capital Advisors, and Josh Silva, managing partner and CIO at Passaic Partners, about this new volatility trade and what it means for the overall stock market.

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On this episode Jake goes over the best trajectory and steps to take to get the most out of your portfolio. When to pivot into something larger and when to sell a property. Enjoy!

If you would like one of your questions to be answered on this podcast send @jakemires a direct message on Instagram or email Jake.mires@yahoo.com directly. Submit questions in text, audio or video form.

Purchase Jake Mires book Evergreen: A real world guide to financial freedom and long lasting wealth through creative real estate investing
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For more real estate consulting services: www.confident-capital.com

Today’s guest is Mike Worthy.

Mike is the VP of Equipment Sales for the oldest/largest commercial laundry distributor in the Mid-South area. 

Show summary: 

In this podcast episode, Mike Worthy, discusses the laundry business and the opportunities and challenges it presents. He emphasizes the importance of doing business right and getting the right advice from reputable distributors. Mike explains that every case is different and thorough research is crucial. He provides case studies to illustrate the differences in laundry facilities and talks about the changing model of the industry. The conversation also covers rising costs, sophisticated ownership groups, the future of the laundry business, and the importance of choosing the right equipment mix and reliable distributor. 

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Intro [00:00:00]

Opportunities and challenges in the laundry business [00:01:46]

The shift in ownership and consumer expectations [00:05:29]

The changing model of the laundry industry [00:09:07]

Barriers to entry in the laundry business [00:10:38]

The importance of research and partnering with experienced professionals [00:11:51]

The future of laundry [00:18:19]

The specialization of people within their niches [00:19:44]

The importance of distributor guidance [00:21:29]

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Connect with Mike:

Linkedin: https://www.linkedin.com/in/mike-worthy-0973b048/

Web: https://www.centrallaundryequipment.com/

Phone: 800-467-3194

Connect with Sam:

I love helping others place money outside of traditional investments that both diversify a strategy and provide solid predictable returns.  

Facebook: https://www.facebook.com/HowtoscaleCRE/

LinkedIn: https://www.linkedin.com/in/samwilsonhowtoscalecre/

Email me → sam@brickeninvestmentgroup.com

SUBSCRIBE and LEAVE A RATING. Listen to How To Scale Commercial Real Estate Investing with Sam Wilson

Apple Podcasts: https://podcasts.apple.com/us/podcast/how-to-scale-commercial-real-estate/id1539979234

Spotify: https://open.spotify.com/show/4m0NWYzSvznEIjRBFtCgEL?si=e10d8e039b99475f

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Want to read the full show notes of the episode? Check it out below:

Mike Worthy (00:00:00) - So people get into this phase of I'm just going to drop it off, have someone touch it, do it. I don't have to worry about, come back and pick it up. And that it continues to increase with wash dry fold, people wanting to use a phone app, people not wanting to use quarters and that that demographic changes daily on the value of people don't want to do what the old laundries used to do.

Intro (00:00:20) - Welcome to the how to scale commercial real estate show. Whether you are an active or passive investor, we'll teach you how to scale your real estate investing business into something big.

Sam Wilson (00:00:33) - Mike Worthy is the VP of Equipment Sales for the oldest and largest commercial laundry distributor in the Mid South Central Laundry Equipment. Mike, welcome to the show.

Mike Worthy (00:00:42) - Well, thanks for having me.

Sam Wilson (00:00:43) - Absolutely. Mike The pleasure is mine. I think this is the first time I've had anybody come on the show and talk about laundry. If anybody who's listening to this knows we are going long in the laundry business.

Sam Wilson (00:00:54) - And so I think this is a lot of fun. I'm glad to have you on today, Mike. There are three questions, though, that I ask every guest who comes on the show in 90s or less. Can you tell me where did you start? Where are you now and how did you get there?

Mike Worthy (00:01:05) - Okay, so our company started back in the mid 80s when everyone had mullets and parachute pants and listening to Duran Duran. So we've been around for a long time. We started out also owning some some small laundry operations and we soon found out you you can't own an operation and compete with your customers. And so for the last 38 years or so, we've been totally independent, providing everything from commercial laundry to hotels, motels, vineyard laundries, hospitals and hotels and I've been doing this for good, gosh, over 20 years. And so had a lot of fun And enjoy the ride, man.

Sam Wilson (00:01:39) - That's cool. Well, tell me, I mean, is now a good time to be in the laundry business?

Mike Worthy (00:01:46) - It is if you do it right, that the key is it's always a good time to get in business and expand your portfolio.

Mike Worthy (00:01:52) - But do you do it right and do you have the right advice from the right people? So, yes, absolutely. Great time.

Sam Wilson (00:01:59) - Well, let's let's talk about what do it right might entail. I mean, there's we we see unlimited opportunity. And I think in our space, which we're in the retail you know where would the retail laundry space. So we do the self-serve, we do drop-off, we do delivery, all of those things. And I see unlimited opportunity to acquire stores and then go do it right. But I want to hear from you because you get to see all across the country all different types of laundry facilities, what does do it right mean for you?

Mike Worthy (00:02:30) - So it's every case is a case by case basis. That's that's the key. You can't just use a universal cookie cutter and says what works in Dallas is going to work in Marion, Arkansas, for example. So everyone is a is a is a case by case basis. And the key to everything is is getting as much information as you can from a reputable distributor.

Mike Worthy (00:02:52) - And so there's a long listing of things that you look for in distributors. But but the key is getting good advice, doing your research and getting as much research as you can. But boots on the ground is also equally important.

Sam Wilson (00:03:06) - Okay. So boots on the ground. But so you say you stay on a case by case basis. Let's look at some of these cases. How could some of how give me maybe two different case studies and how they would differ.

Mike Worthy (00:03:16) - Okay. So for example, suppose we're talking in a large town that has laundries for sale. So just because the laundry is for sale doesn't mean that it's a great idea or a great investment. It could be, but there's a reason that it's for sale to begin with. And there's a long list of scenarios that that something could be for sale. But as a business person, if I've got a business and it's doing well, why do I want to sell it? There's always that. Why there's always underlying things that's being sold because the equipment doesn't work or it's outdated or they can't get service or the equipment is obsolete.

Mike Worthy (00:03:52) - So there's a long list of things that you look for for sure, but you also have that equal opportunity if you want to buy your own property, build your own laundry, you know, kind of custom tailor it to to your needs. So we've got people that start from a ground up situation. We just had a great success story in South Arkansas, $1 million plus laundry that built from the ground up all the way to 16 foot ceiling fans and floors that look like the ocean to, hey, I'm just buying something and I'm just going to re-equip it and try to get my profits up. So a lot of different scenarios and everyone is different.

Sam Wilson (00:04:26) - Everyone is different. And I think that's that's the fun part about it, is that is that you got to you have to determine what the right store needs in a particular location. But let's let's talk about the Y sell scenario. I have this theory that the average laundromat owner is getting older. This is what we're seeing on the stores we're acquiring. They're getting older.

Sam Wilson (00:04:51) - They are still taking coins. They mean a lot of the stores we're buying don't have a website. They don't have a phone line. They don't do pickup and delivery and the list goes on. You know, I mean, the store we just bought, the guy was telling me all about how to do a bearing overhaul on a machine. And I just kind of looked at him and I'm like. Now. I don't want to know how to do that.

Mike Worthy (00:05:15) - No, you do not. It is not fun.

Sam Wilson (00:05:17) - No, in a poor use of their time. So I'm seeing. I'm seeing this this shift in ownership from older to younger, which just makes sense because, I mean, the model they have built is unscalable or unsustainable, rather.

Mike Worthy (00:05:29) - No, you've nailed it right on the head. And what you've also seen is that the days of the small laundry will be coming to a close sooner or later, Maybe not in the particular town that you're in or someone else may be in. But unfortunately, due to this day and age of Covid and social distancing, people don't want to be cramped in a small laundry.

Mike Worthy (00:05:47) - They want to have the amenities of a nice laundry. And I give this example all the time. I'm in my mid 50s and I grew up in the 80s, of course, watching a Chevy Chase vacation. And you'll hear a and I tell this to everyone, you'll hear a sentence in there that says, I'm so hungry I could eat a sandwich from a gas station and that back then you would think of a gas station. You would never eat there. You wouldn't want to use the restroom there. I don't want to stop, but nowadays you see a nice gas station and they've got food and drink and TV and Wi-Fi and all this good stuff. So what our demands are as a consumer has changed for laundry and gas stations and doctor's offices and shopping. And a lot of these people aren't up to speed and you hit it right on the head when you said wash dry fold and things to that extent, because I've got a I've got a son that's second year of college that doesn't want to do laundry.

Mike Worthy (00:06:36) - So people get into this phase of I'm just going to drop it off, have someone touch it, do it. I don't have to worry about, come back and pick it up. And that it continues to increase with wash dry fold, people wanting to use a phone app, people not wanting to use quarters and that that demographic changes daily on the value of people don't want to do what the old laundries used to do.

Sam Wilson (00:06:57) - I think that's that's probably the best comparison I have heard yet. I had I hadn't put that those two together. But you're absolutely right. And you would say, I think I think previous mentality would have said that that the people that want and use laundromats don't demand that those amenities. But they do. I mean, we just retooled a store here in Memphis. And I mean, it's like like you said, the floors are, you know, everything's new top to bottom, brand new paint, signage, machineries or equipment, the payment systems. I mean, it's just it's it's a spotless brand new store.

Sam Wilson (00:07:31) - And the place was a dump before. Yes.

Mike Worthy (00:07:33) - And you get into the stereotypes when you just say the word. Well, first of all, when you say the word coin laundry, it's no longer just coin. But you have that vision of your head of broken equipment and nasty and no air conditioning. And the market's changed because suppose you're you're you're a well-off gentleman and you're married and you've got three kids and you went to, let's say, Silver Dollar City over the weekend and you have all this laundry. Well, do you want to come home and you guys spend the rest of your Sunday doing laundry or take it down to a nice laundromat and knock it out in an hour, an hour and a half. Right. And so the general consumer doesn't want to go to a laundry that's nasty and dirty or unsafe or unlit. And so when you provide those services, you're not only opening up customers that don't have a washer and dryer, but now you've got grandma that spilled something on the comforter and you've got the kids that don't want to do all the football uniforms.

Mike Worthy (00:08:21) - And so your your clientele just basically jumps through the roof with the offerings that you can offer as a smart laundry owner, right?

Sam Wilson (00:08:28) - Absolutely. Yeah. On that store in particular, we've doubled revenues in just a few short months, which.

Mike Worthy (00:08:33) - Is just very, very doable.

Sam Wilson (00:08:34) - Very doable. Right. So let's talk about that. One of the one of the not one of the objections I was going to say blowback, but that's the wrong word. One of the objections I receive from potential investors, as they say. Well, I mean, well, if you can do it and it's so simple, like you just mentioned, lighting, machinery, payment systems, point of sale systems, staffing your stores, you know, increased hours, all those things that we do there, like that's anybody can do that. So what prevents somebody else from coming in and putting a store in the corner right next to you? I have an answer for that, but I'd love to hear kind of what your thoughts are on that.

Mike Worthy (00:09:07) - So as a distributor and I know I stress on this, but the model has changed so much because in the past, the way the laundry industry worked is you had to be a laundry owner to to be able to be a distributor because you have quotas. Just like in any job, you've got a quota, you got to hit your number. Well, if you're not out selling the customers, then the only way you're selling is to yourself. And so that is kind of changed where, hey, they're looking for manufacturers are looking for a full fledged distributor, not just an owner, but someone that is that handles everything from a hotel to a vintage laundry to a to a hospital. And so the ownership has changed on what they're looking for. And by ownership, I'm talking about the manufacturers. But when we get into looking to compete with someone, one of the things that we promise is we're not going to put a laundry next to you. If you partner up with us, you've got a you've got our word as a vendor of almost 40 years that why do we want to put someone right next to you? Why would we want to put something else you got to worry about? Two is franchised stores.

Mike Worthy (00:10:06) - We're not going to put a franchise store next to you. We're going to make sure that we take care of our customer. And it makes no sense to put and I know certain areas in Memphis. You can go into a two two square mile radius and find ten laundries. And half of them are all put in by the same person and four of them are owned by the. By the distributor. So you need to really even out the playing field and really dive into what you're doing. But that's the key of making sure you're finding demographics and a good spot. And as us, we're not going to build against somebody that we just built for.

Sam Wilson (00:10:38) - I think I think the other side of this and one of my answers to it is that the the cost to build stores has risen. I mean, incredibly incredible.

Mike Worthy (00:10:49) - Well, yeah. And the finance. Right. Just went up, too, as you know. So this is we take the call every day, 3 or 4 times a day. Hey, I'd like to get in the laundry business.

Mike Worthy (00:10:57) - I've got $5,000 and we do take that. So unfortunately, getting into a business, it's one of those things you got to have some money to make some money. Right? And that's kind of true because some of the bigger investments now are million dollar stores or half million dollar stores easily easy before you start getting into it. Really a lot of improvements. These are some basic stores that are 4 or $500,000 just on equipment. Right. And then contractor cost and plumbing, all of that stuff adds up. And sometimes people aren't educated enough to and I don't mean that badly. I'm saying they don't do their legwork right, of saying, hey, before I buy this property, let me see the demographics. Let me see if there's laundries nearby. And oh, let me make sure if I'm going to put a laundry here, I don't have to bore a drain under a state highway. That's going to cost me an extra 20,000 grand.

Sam Wilson (00:11:43) - Right?

Mike Worthy (00:11:43) - Right. So there's a lot of things and that's that's the key, is to partner up with someone that's that's done it, that understands every nuance of how it works.

Sam Wilson (00:11:51) - You're spot on. Correct. And those are all the all the answers I give to investors because we have our clean laundry fund, which is we're going out and acquiring 20 to 25 stores through that fund. And people say, well, why can't, you know, why can't just the guy down the street just come out and start a laundromat? Because all the things you just mentioned, one, it's knowing what you're doing. And two, it's just the the incredible amount of capital now that it takes to get to build and then, you know, furnish a store it completely or put all the equipment in a store. I mean, I'm budgeting anywhere from 750 to $1.5 million per store now. I mean, at the low end at 750 to 800 and easily.

Mike Worthy (00:12:27) - And then if you have to build your building, add to add to that, add to that.

Sam Wilson (00:12:31) - Right. And so I think that's one of the barriers to entry that I personally really like one because it's like it keeps the mom and it keeps it keeps just that I hate to say it keeps them out, but there's just there's just a natural barrier to entry and getting in the business.

Sam Wilson (00:12:44) - And so I think that's it's good in the sense. The other thing I'm seeing I think is really good is a, um, a sophisticated ownership group entering the space. Tell me what you think about when I say that. What do you think?

Mike Worthy (00:12:59) - So and that's kind of a loose term because everyone's different and sophistication is based on someone's own opinion on for sure. Where did they get that information? So you get some folks to get some great information and you get some that, hey, I read it. You know, everything you see on the Internet, it's true. And everything you read is true. You get some people that get some bad information. And that's that's the key. I can't stress that enough is if I'm shopping for a vehicle, I'm going to look at the three or 4 or 5, six different brands, and then I'm going to start looking at dealerships. And in this day and age of point and click and instant gratification through through a, you know, through a drive through or through your phone.

Mike Worthy (00:13:36) - Sometimes people don't do the research. They just say, Hey, I found the first guy right here. Here's the first one on Google. I'm going to call him. Oh, he sounded good. And don't do the rest of the research. So there's a lot of underlying things that we see when we say, Hey, this group may be great and this group may not be so great, but they both think they're great. And so the key is just using the research that's available at your fingertips.

Sam Wilson (00:14:01) - Right? Right. When I when I say that one of the things I'm thinking of is that we're just seeing people come to the space that want to do this professionally. They want to build a replicable, scalable business that serves their customers really well. It goes back to, you know, the, you know, the rise of the Speedway gas station, talking about things that you you know, where it's like, hey, you get there clean. They're well lit. I mean, you can see two gas stations, one across.

Sam Wilson (00:14:26) - I'm thinking of BP versus and BP maybe coming around. I don't know. But if I think of which one's going to be better lit and more well equipped, I'm going to say, well, it's going to be a speedway gas station versus maybe a BP gas station because maybe. Right. Different standards. And so what I'm seeing is that same thing in the laundry space where we're seeing consolidation ownership groups are buying ten, 20, 30 stores at a time or in their portfolios, rather, versus the just stand alone mom and pop owner that, again, you know, is lacking a phone line or a website to.

Mike Worthy (00:14:54) - That's correct. And that's not where it's at. So if I'm building a laundry, that's what I'm looking for, is if my competitors, the small little laundry mom and pop, the biggest thing if I walk into a competitor and there's all these signs that say Broken out of order, that's my key to build. Absolutely in in a heartbeat builder by now. And it makes it makes sense.

Mike Worthy (00:15:13) - But you've also got to do those demographics just because you see the one laundry in town and then you start looking at the number and going, Well, I'm going to spend $600,000, but the laundry is only going to make $80,000 a year. That's not smart, know, And being able to understand the demographics, it's not just let me print something out and hand you a nice portfolio and you figure it out. You have to be able to dive in, do the talk, walk the walk, and then you get into the you know, then you get into the deep dive of who's the distributor in the service after the sale and the parts and the equipment brand and, and it goes on and on. But this is not we do see a lot of people that have got the right mindset, like you said, But, hey, my wife's going to run it in her spare time and I'm a doctor over here. This is not that. This is not the glamour of a subway or a restaurant.

Mike Worthy (00:15:56) - And look at me. You're going to you're going to have a baby stock hung in a pump. You're going to have someone lost their money and they're upset. You're going to have you know, you're going to have a myriad of things that could could happen in a laundry, as you can imagine. But this is your this is a hands on. This is not just I'm going to set it and forget it and go rake up all the money and go buy a new bass boat. And that's where the mentality has been for the last couple of decades, right?

Sam Wilson (00:16:20) - Yeah. And you said all the things that could go wrong. I'm going to switch that word out and say all the things that will go wrong. Well, I was.

Mike Worthy (00:16:26) - I was being optimistic, But you're you're right on there, you know. You know what I'm talking about.

Sam Wilson (00:16:29) - Absolutely, man. I've and that's that's the other thing is that is it is. It is. And you can decide, I think, how operationally complex you want to make it.

Sam Wilson (00:16:39) - But even even if you're not doing wash dry fold, even if you're not doing delivery laundry with drivers and trucks and all that stuff that you can add on, even on just the self-serve side of things, it's still an operationally complex business. And I think that's that's what people kind of miss estimate as they look to get into this and go, oh my gosh. And we just have the fortunate pleasure of just kind of learning on the job and having other things going on too. We got in the laundry business kind of by mistake, and then I found out I loved it. I'm like, Oh, this is great. Well, it's.

Mike Worthy (00:17:10) - Great. It is. It is fantastic. You meet a lot of nice people. Yeah, it is. It is one of the things I mean, we've been doing almost 40. I've been in almost for 20. And I learn something new every day.

Sam Wilson (00:17:19) - Absolutely. Let's talk.

Mike Worthy (00:17:20) - Coming to work.

Sam Wilson (00:17:21) - I do, too, man. I think. I think it's great.

Sam Wilson (00:17:23) - One of the there's two things I love about the business. One is that it has excellent margins. And then I think the other side of it is that when you bring an excellent product to market, we get to serve a demographic that's not used to being served in that way.

Mike Worthy (00:17:36) - I'm almost shocked if this is for me, this, wow, this has air conditioning, you know, so many places you walk into and it's really kind of sad of how can you expect someone to to operate a facility and you don't have heating air or you don't have a restroom or you don't have a just basic a chair, right? And so you come in and offer. Someone that what they expect and you go beyond the expectations and that's your advertising. They will tell people and then they'll spread the word. They'll post it on Facebook. That's your that's where you're going after is the word of mouth.

Sam Wilson (00:18:11) - Right? We have we have this new store we just brought online. In the last seven days. We've generated over 55 star Google reviews for that store.

Sam Wilson (00:18:19) - I mean, it's like it's just not that hard to present a really great product that people love. I want to talk to you before we run out of time, though. Let's talk about the future of laundry. One of the things that I always emphasize is that I feel and tell me if I'm right or wrong. So I'd love some feedback on this that that the laundry business is recession and inflation resistant. What do you think?

Mike Worthy (00:18:42) - Well, they've been saying that same sentence and you've hit it right on the head again for for decades. And when the when the chips are down, guess what? People are at the laundry, Right. And then when the chips are up and everyone's doing well, guess what? Then you've got to think of other ways to keep that business going. And guess what? The wash dry fold you've just hit an area if you're doing wash dry fold for people that have a washer and dryer and have a have a two car garage and have a college education, they just don't want to do laundry.

Mike Worthy (00:19:06) - I don't like to do laundry. I hate it. But if I can take it and drop it off and someone will have it all nice and pressed and ironed for me, hey, great. I'll pick that up and I'll pay for that service. You pay for the for the biggie fry or the biggie drink. You know, there's there's things people want to pay for and that's one of them that more and more people are going, I don't want to do laundry. I don't want it. You think of the think of the the influx now of landscapers and yard workers. Used to be, you know, everyone was proud to do their own yard. I'm going to mow my yard. I'm proud Now. I was like, I'm not doing I'm hiring that I got my time is valuable, right? And so put value on your time. And that's why you see the Wash Dry fold is doing so well.

Sam Wilson (00:19:44) - It really is. Yeah. I mean, this goes back to just the continued specialization of people within their niches.

Sam Wilson (00:19:51) - It's like and the same thing holds true for me. I mean, you hit it on the head the maybe 2 or 3 years ago. I'm like. I'm no longer mowing my lawn. This makes no sense to me to go out on a Saturday and spend two hours mowing my grass when it's like, Well, I could spend two hours building our laundry business or any of our other commercial real estate businesses and have a far greater return on my time than pushing more around this.

Mike Worthy (00:20:14) - Maybe it's me. I take the two hour nap on a Saturday. You know, let me relax. People want to enjoy some time off for a while, and that's not where it's at. And laundry also is not where, you know, do you really want to have to spend all that time doing that? More and more people are saying, no, I'll take it somewhere, as long as it's cool, clean and comfortable and reputable. That's not going to happen in these little small, dumpy little laundries. You offer what you know, you basically you build it, they will come.

Sam Wilson (00:20:37) - You build it, they will come. That's so true. Yeah. I always make the joke. One of the stores we just bought the five closest stores to this one that we're remodeling. I wouldn't wash my dog in, let alone go. It's like, okay, we have. We have nothing but unlimited opportunity in upside. So I really love the idea. I didn't know that that was really something you've been saying for, you know, since coin laundries or just laundry.

Mike Worthy (00:20:59) - It's been around for a while. But that but you hear that and people hear it. But you still have to have the eagerness and the finances to get into the business. Right. And it's a great and you were right when you said, hey, it's think of how many people have a restaurant, mom and pop restaurant, and you see them come and go, This is not going to be the mom and pop come and go investment. You're not going to see that. Nope. And so kind of weeds out the bad investments.

Mike Worthy (00:21:22) - Hopefully. Now it doesn't mean we doubt everybody, but then now you've got to make sure you've got the right equipment mix and the right distributor to help.

Sam Wilson (00:21:29) - That's it. I mean, that's it. And we rely heavily on our distributor for making those informed decisions because it and one of the things I keep saying to our investor base is that we want to thoughtfully scale, like as we grow, because you can still buy a bad store, you can still buy a bad location, you can still overbuild under build wrong, mean wrong payment systems. You can misread it without all of the correct data and think that is where a distributor such as yourself really, really comes in and helps guide. And I know you guys are in the business to sell equipment. I understand that that's how you get paid, but also you build alongside of those that you work with because if we fail, you fail too.

Mike Worthy (00:22:07) - So that's actually part of that is true and part of that is false. So one of the things that we've said since we've opened our doors is my job isn't to sell you equipment and you go, Well, what's that? My job is to make you successful.

Mike Worthy (00:22:21) - I can't afford to sell you equipment. And then you're, you know, I'm just talking. And I said, you get you all hopped up to buy equipment and you fail. I can't afford that. I want you successful. And then you're going to tell someone or you're going to buy another store or they're going to know, Hey, call Mike. This guy really treated me right. I can't afford to fail. So, you know, when we say we're truly behind the customer from the demographics to the design to, you know, trying to get same or second day service being in town, we put a strong focus on that. So it's it's not hey, let me just make a quick sale that, you know, we all like to make money, but I like to see you successful. That's that's my number one goal.

Sam Wilson (00:22:57) - Love it. Mike. Thank you for taking the time to come on the show today. It was certainly fun for me to get to banter with somebody else about the laundry business.

Sam Wilson (00:23:05) - I don't get to do that every day. We talk a lot about all the other commercial real estate asset classes, and this was personally a lot of fun for me, just because it's something we are so passionate about right now. If our listeners want to get in touch with you or learn more about you or the laundry business, now that they've got a front row seat to how it should be done, what is the best way to do that?

Mike Worthy (00:23:25) - Okay, so a couple of ways. Central laundry equipment, that's our website, Central laundry equipment. Or you can call our 800 number. We have offices in central Arkansas and Memphis. That number is (800) 467-3194. (800) 467-3194. And we'll even send you a couple of some information about our company. And we've got some great infomercials that will talk to you and you'll hear from our customers, our manufacturers, our people that have invested in laundry and people that we've done service for, for 20, 30 years that will kind of talent who is central laundry equipment.

Sam Wilson (00:24:05) - That is fantastic.

Sam Wilson (00:24:06) - We'll make sure we include all of those things there in the show notes. Mike, thank you again for your time today. I certainly appreciate it.

Mike Worthy (00:24:12) - Take care. Thank you again. Hey, thanks.

Sam Wilson (00:24:13) - For listening to the How to Scale Commercial Real Estate podcast. If you can do me a favor and subscribe and leave us a review on Apple Podcasts, Spotify, Google Podcasts, whatever platform it is you use to listen. If you can do that for us, that would be a fantastic help to the show. It helps us both attract new listeners as well as rank higher on those directories. So appreciate you listening. Thanks so much and hope to catch you on the next episode.

This month, Bloomberg is excited to bring you a brand new show. Every Friday on What'd You Miss This Week, we'll feature the most interesting interviews from Bloomberg's daily market close show, "What'd You Miss" hosted by Scarlet Fu, Julia Chatterley and Joe Weisenthal. We want to take you beyond the headlines and bring you a unique perspective on the week's top stories, and those you may just have missed. It's the perfect way to kick off your weekend. Be sure to subscribe now, so you don't miss a thing!

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Kristi Winfree is a former teacher that discovered she has a passion for helping people and loves to use her natural gifts of being highly detail oriented and implementing systems and processes. She launched Legacy Transactions to help agents grow their business and provide education to them along the way. Her personal motto is "wake up every day to create Raving Fans and make someone's life better!" She is also the host of "Not Just A Daydream - Business Insights and Inspiration for the Work At Home Entrepreneur"

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