How I Built This with Guy Raz

Pressbox and Tide Cleaners: Vijen Patel. The $1.99 Gamble That Built a National BrandWhat if the best startup isn’t sexy at all? In 2013, Vijen Patel left private equity to pursue “the least-worst idea”: dry cleaning. No patents. No app wizardry. Just laundry lockers in high-rises, ruthless unit economics, and a $1.99-a-shirt price that was seared into America’s brain. From bootstrapping routes at 5 a.m. to breaking even in 6 weeks, Vijen and co-founder Drew McKenna scaled Pressbox to hundreds of locations, stared down well-funded competitors, and ultimately sold to Procter & Gamble, where Pressbox became Tide Cleaners (now ~1,200 locations). After the exit, Vijen launched The 81 Collection, a VC fund backing “boring” businesses that quietly power the economy. This episode is a masterclass in building profit first, creating user behavior (not changing it), and protecting customer retention like your life depends on it. What you’ll learn: • How the “least-worst idea” found product-market fit • How sidestepping rent + labor can flip margins from 15% to ~40% • The efficiency insight that beat “Uber-for-X” rivals • The new-residence edge: creating customer habits with a welcome-kit • Why Pressbox had to set crazy-high retention goals (98%!) • How to keep competitors close—and turn a Goliath into your buyer • The post-exit premise: “boring” businesses are engines of the middle class Timestamps: Choosing dry cleaning with a private equity lens • : don’t do it for passion–focus on practicality — 00:09:30The SMS “app” • : low tech, high convenience — 00:14:14Unit economics breakthrough: • lockers ( 26 transactions per hr • ) versus scheduled pickup (4-6) — 00:18:55The $1.99 insight • : a price everyone expected — 00:24:58How getting into • Chicago’s top high-rise was a game-changer — 00:31:11Margins that work • : if you’re a high-rise “amenity,” you don’t pay rent — 00:33:08Competing with Washio • : convenience wins — 00:39:07Vertical integration • : building the plant, staffing via Spanish newspapers — 00:41:48P&G looms • : head-to-head, then the acquisition dance — 00:51:25Burnout, trade-offs, and life after exit • : launching a VC fund that specializes in boring businesses — 01:03:28 This episode was produced by Alex Cheng with music composed by Ramtin Arablouei. It was edited by Neva Grant with research help from Olivia Rockeman. Our engineers were Patrick Murray and Maggie Luthar. Follow How I Built This: Instagram → @howibuiltthis X → @HowIBuiltThis Facebook → How I Built This Follow Guy Raz: Instagram → @guy.raz Youtube → guy_raz X → @guyraz Substack → guyraz.substack.com Website → guyraz.com See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

777

1 h 6 min

Poppi: Allison and Stephen Ellsworth. From Farmers Market Vinegar Drink to $2B Soda SensationA decade ago, Allison Ellsworth was drinking apple cider vinegar for health reasons and doctoring it with fruit so she could stand the taste. Her husband Stephen helped her turn it into a business by adding carbonation on a hacked soda line in their Dallas townhouse. They called it “Mother Beverage,” and sold out every week at the farmers market…but then heard the words no founder forgets: “Your branding is…sh*t.” What happens next is one of the wildest CPG glow-ups of the 2010s: a Shark Tank deal with brand whisperer Rohan Oza, a full rebrand to Poppi, colored cans that jumped off the shelf, a launch derailed by Covid—and finally, an explosion fueled by Amazon, TikTok, and a Super Bowl moment that planted the flag: We’re soda–and we’ve left the farmers market for good. Five years after its rebrand, Poppi was acquired by Pepsi for nearly $2B. This is the story of the messy bottling line, saying no to “dumb money,” baptism by Shark Tank, and building a generational brand while staying married. In this episode, you’ll learn: • How rebranding can rescue a beverage, and when to avoid early eye-rolls • The hit-and-miss of carbonating on a small scale (and why co-packers said no). • How the risky decision to call Poppi “soda” unlocked a new retail set (functional soda). • What a Shark Tank partner does during a rebrand window. • How Allison seized on TikTok to spike sales during Covid Timestamps: • 0:10:15 Meeting cute at a snowboard shop → engagement in 7 months • 0:14:00 How apple cider vinegar helped Allison’s health…but tasted terrible (early flavor hacks) • 0:22:36 DIY carbonation disasters: exploding bottles & the 40°F lesson • 0:37:48 Appearing on Shark Tank while nine months pregnant and the deal with Rohan: “your branding is sh*t.” • 0:42:28 Selling out at the Dallas Farmers Market • 0:47:02 The nail-biting rebrand from “Mother” to Poppi: colored cans vs. white, and winning the shelf • 0:55:43 Expo West canceled by Covid → a massive turnaround fueled by Amazon, Shark Tank, and TikTok • 1:07:51 Super Bowl ad– “We’re soda!”--and the road to a ~$2B Pepsi acquisition • 1:09:58 Growing a business while managing a marriage Follow How I Built This: Instagram → @howibuiltthis X → @HowIBuiltThis Facebook → How I Built This Follow Guy Raz: Instagram → @guy.raz X → @guyraz Substack → guyraz.substack.com Website → guyraz.com This episode was produced by Rommel Wood with music composed by Ramtin Arablouei. It was edited by Neva Grant with research help from Alex Cheng. Our engineers were Patrick Murray and Jimmy Keeley. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

773

1 h 7 min

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