I just talked to a guy who flipped a ping pong joint into a $50M tech company.
It’s a crazy story and I wanted to learn more.
The company’s called PingPod. It was founded in 2020 by David, Max, and Ernesto.
It started with a single spot in NYC. Now they have 15 locations in 6 cities. And zero employees.
Here’s how it works.
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1/ Figure Out The Model
Rewind to February 2020. The guys open a ping pong “pod” in NYC. And they optimize every part of it.
The lighting, the tables, the pricing, the equipment. Tweaking and toning until it’s just right.
After a few months, they’re pulling in $800/day. Expenses are running $600/day. That’s a 25% profit.
It’s working. Time to hit the gas.
2/ Scale With Cheap Real Estate
The ideal PingPod is 2,500 square feet. In areas with lots of foot traffic. And in 2020, there’s plenty of it available.
Covid-19 is pummeling the real estate market. Landlords are desperate to fill their office and retail space.
And PingPod is here to grab it.
Our boys negotiate sweetheart deals in New York, Brooklyn, and Queens. Within 24 months, they’re at 4 locations.
3/ Automate Everything
PingPod keeps labor costs down by automating the whole experience. Customers use the app to reserve a table, unlock the door, and pay their bill.
And it gets better. The app has fun features. You can control the lighting at your table and watch video replays of your game.
All this automation means zero employees.
4/ Price It Right
Booking a table will run you $15 – $50 an hour. It all fluctuates based on timing and location.
For power players, PingPod offers a membership. That ranges from $60 – $120 a month. You’ll get discounted tables, first-in-line access, and other perks.
Whatever you choose, PingPod is getting paid.
5/ Horizontal Expansion
This is all working for the ping pong crowd. But could it work for other stuff? Oh yes.
Next up: pool halls.
In 2023, PingPod scoops up Sharks Pool Club. They quickly revamp with the fancy app and more services.
In under a year, revenue is up 76%.
6/ Productize The Tech
Now for the grand finale. Ping pong and pool halls can be a good business. But the underlying tech might be even better.
So last year, the crew launched PodPlay. They’ve taken their entire tech stack and turned it into a SaaS product. And they raised $10M+ to grow fast.
From fitness centers to pickleball courts, PodPlay is hustling to dominate the market.
And it all started with a ping pong joint.
Contributed to Branding Strategy Insider by Jon Davids, Founder & CEO of Influicity.
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