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Jun 17, 2016 · 21m · top-founders

EP 328: She Bought 50% for $17k, Now Does $1M Per Year in iPhone Repairs

Erica Douglas · 9m spoken Nathan Latka · 9m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In this episode of The Top, host Nathan Latka interviews entrepreneur Erica Douglas on how she invested $17,000 to acquire a 50 percent stake in OneUp Repairs and scaled it into a seven-figure, multi-location business.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 49.3% of the talking time here. How this is scored →

Nathan as informed peer 4.0 Guest teaching 3.0 Guest disagreement 1.4 Nathan pushing back 2.4
05100:0010:0020:001:16–3:27 · Nathan as informed peer 3/10 Introducing Erica Douglas and OneUp Repairs Nathan introduces Erica and probes into the core business model and physical store locations. The tone is entirely welcoming and collaborative as Erica details their Austin and San Marcos footprint.3:27–6:02 · Nathan as informed peer 4/10 The Origin Story and Campus Expansion Strategy Nathan digs into the specific numbers behind Erica buying into the business and moving to the UT Austin campus. He clarifies personal details and tracks the jump in revenue from 2014 to 2015.6:02–10:10 · Nathan as informed peer 6/10 Financial Metrics, Unit Economics, and Supply Chain Insights Nathan runs unit economics math on tickets and monthly top line, assuming replacement parts come from Apple. Erica educates him on the underground China screen recycling supply chain, which Nathan quickly grasps and extrapolates.10:10–15:36 · Nathan as informed peer 7/10 Business Valuation, Yelp Strategies, and Customer Retention Nathan presses Erica when she is vague on valuation metrics, then plays devil's advocate regarding competitor Yelp sabotage and brand loyalty. Nathan runs a live search to verify her organic ranking claims.15:40–17:18 · Nathan as informed peer 0/10 Mid-Roll Sponsorships and Live Event Announcement Solo promotional ad read by Nathan promoting HostGator and his Austin Live event. All scores set to 0 for monologue/ad content.1:16–3:27 · Guest teaching 1/10 Introducing Erica Douglas and OneUp Repairs Nathan introduces Erica and probes into the core business model and physical store locations. The tone is entirely welcoming and collaborative as Erica details their Austin and San Marcos footprint.3:27–6:02 · Guest teaching 2/10 The Origin Story and Campus Expansion Strategy Nathan digs into the specific numbers behind Erica buying into the business and moving to the UT Austin campus. He clarifies personal details and tracks the jump in revenue from 2014 to 2015.6:02–10:10 · Guest teaching 7/10 Financial Metrics, Unit Economics, and Supply Chain Insights Nathan runs unit economics math on tickets and monthly top line, assuming replacement parts come from Apple. Erica educates him on the underground China screen recycling supply chain, which Nathan quickly grasps and extrapolates.10:10–15:36 · Guest teaching 5/10 Business Valuation, Yelp Strategies, and Customer Retention Nathan presses Erica when she is vague on valuation metrics, then plays devil's advocate regarding competitor Yelp sabotage and brand loyalty. Nathan runs a live search to verify her organic ranking claims.15:40–17:18 · Guest teaching 0/10 Mid-Roll Sponsorships and Live Event Announcement Solo promotional ad read by Nathan promoting HostGator and his Austin Live event. All scores set to 0 for monologue/ad content.1:16–3:27 · Guest disagreement 1/10 Introducing Erica Douglas and OneUp Repairs Nathan introduces Erica and probes into the core business model and physical store locations. The tone is entirely welcoming and collaborative as Erica details their Austin and San Marcos footprint.3:27–6:02 · Guest disagreement 1/10 The Origin Story and Campus Expansion Strategy Nathan digs into the specific numbers behind Erica buying into the business and moving to the UT Austin campus. He clarifies personal details and tracks the jump in revenue from 2014 to 2015.6:02–10:10 · Guest disagreement 2/10 Financial Metrics, Unit Economics, and Supply Chain Insights Nathan runs unit economics math on tickets and monthly top line, assuming replacement parts come from Apple. Erica educates him on the underground China screen recycling supply chain, which Nathan quickly grasps and extrapolates.10:10–15:36 · Guest disagreement 3/10 Business Valuation, Yelp Strategies, and Customer Retention Nathan presses Erica when she is vague on valuation metrics, then plays devil's advocate regarding competitor Yelp sabotage and brand loyalty. Nathan runs a live search to verify her organic ranking claims.15:40–17:18 · Guest disagreement 0/10 Mid-Roll Sponsorships and Live Event Announcement Solo promotional ad read by Nathan promoting HostGator and his Austin Live event. All scores set to 0 for monologue/ad content.1:16–3:27 · Nathan pushing back 1/10 Introducing Erica Douglas and OneUp Repairs Nathan introduces Erica and probes into the core business model and physical store locations. The tone is entirely welcoming and collaborative as Erica details their Austin and San Marcos footprint.3:27–6:02 · Nathan pushing back 2/10 The Origin Story and Campus Expansion Strategy Nathan digs into the specific numbers behind Erica buying into the business and moving to the UT Austin campus. He clarifies personal details and tracks the jump in revenue from 2014 to 2015.6:02–10:10 · Nathan pushing back 3/10 Financial Metrics, Unit Economics, and Supply Chain Insights Nathan runs unit economics math on tickets and monthly top line, assuming replacement parts come from Apple. Erica educates him on the underground China screen recycling supply chain, which Nathan quickly grasps and extrapolates.10:10–15:36 · Nathan pushing back 6/10 Business Valuation, Yelp Strategies, and Customer Retention Nathan presses Erica when she is vague on valuation metrics, then plays devil's advocate regarding competitor Yelp sabotage and brand loyalty. Nathan runs a live search to verify her organic ranking claims.15:40–17:18 · Nathan pushing back 0/10 Mid-Roll Sponsorships and Live Event Announcement Solo promotional ad read by Nathan promoting HostGator and his Austin Live event. All scores set to 0 for monologue/ad content.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 67.1% · guest 32.9%0:00 · Nathan 67.1% · guest 32.9%3:00 · Nathan 18% · guest 82%3:00 · Nathan 18% · guest 82%6:00 · Nathan 32.8% · guest 67.2%6:00 · Nathan 32.8% · guest 67.2%9:00 · Nathan 31.6% · guest 68.4%9:00 · Nathan 31.6% · guest 68.4%12:00 · Nathan 44.4% · guest 55.6%12:00 · Nathan 44.4% · guest 55.6%15:00 · Nathan 69.5% · guest 30.5%15:00 · Nathan 69.5% · guest 30.5%18:00 · Nathan 83.6% · guest 16.4%18:00 · Nathan 83.6% · guest 16.4%21:00 · Nathan 0% · guest 0%21:00 · Nathan 0% · guest 0%
Sharpest disagreement ▶ 12:19 Erica dismisses Yelp sabotage vulnerability

Erica firmly pushes back against Nathan's devil's advocate claim that competitors can easily sabotage her business on Yelp, explaining how Yelp's filtering algorithms detect fake reviews.

 Hardest push from Nathan ▶ 10:55 Nathan pushes past vague valuation response

When Erica claims there is no firm valuation multiple for repair shops, Nathan refuses the deflection and flips the question to ask exactly how she drives purchase prices down on acquisition targets.

 Biggest teaching moment ▶ 8:18 The reality of independent iPhone repair supply chains

Erica corrects Nathan's misconception about buying screens from Apple, detailing the international recycling ecosystem where broken screens are sent to China for refurbishment.

 Nathan holds their own ▶ 13:54 Nathan reverse-engineers Yelp search positioning live

Nathan conducts a live Google and Yelp search during the interview, dissecting paid versus organic listings and review volume to validate her acquisition funnel.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Erica Douglas and OneUp Repairs 3111 Nathan introduces Erica and probes into the core business model and physical store locations. The tone is entirely welcoming and collaborative as Erica details their Austin and San Marcos footprint.
The Origin Story and Campus Expansion Strategy 4212 Nathan digs into the specific numbers behind Erica buying into the business and moving to the UT Austin campus. He clarifies personal details and tracks the jump in revenue from 2014 to 2015.
Financial Metrics, Unit Economics, and Supply Chain Insights 6723 Nathan runs unit economics math on tickets and monthly top line, assuming replacement parts come from Apple. Erica educates him on the underground China screen recycling supply chain, which Nathan quickly grasps and extrapolates.
Business Valuation, Yelp Strategies, and Customer Retention 7536 Nathan presses Erica when she is vague on valuation metrics, then plays devil's advocate regarding competitor Yelp sabotage and brand loyalty. Nathan runs a live search to verify her organic ranking claims.
Mid-Roll Sponsorships and Live Event Announcement 0000 Solo promotional ad read by Nathan promoting HostGator and his Austin Live event. All scores set to 0 for monologue/ad content.

Statements from this episode (8)

Disclosure
Douglas bought 50% of OneUp Repairs for $17,000 in 2014
“So I put in about 17,000 dollars for about half of the business at that point.”
Erica Douglas Jun 17, 2016 ▶ 5:16
Assertion Not checkable as stated
OneUp Repairs generated $62,000 in revenue in 2014
“About 62,000.”
Erica Douglas Jun 17, 2016 ▶ 5:27
Assertion Not checkable as stated
OneUp Repairs reached $380,000 in revenue in 2015
“380,000.”
Erica Douglas Jun 17, 2016 ▶ 5:31
Prediction Not checkable as stated
OneUp Repairs expects over $1M in revenue for 2016
“I don't have exact numbers because we have two stores now and I'd have to add them up together, but I know we're on track to do well over a million dollars in revenue this year.”
Erica Douglas Jun 17, 2016 ▶ 6:09
Assertion Not checkable as stated
Douglas: OneUp Repairs operates at roughly 25% gross margin
“It's a gross margin is about 25%.”
Erica Douglas Jun 17, 2016 ▶ 6:18
Assertion Not checkable as stated
Phone repairs make up 80% of volume for OneUp Repairs
“About 80% of it is phone repairs by volume.”
Erica Douglas Jun 17, 2016 ▶ 7:02
Assertion Supported
Apple refuses to sell repair parts to independent shops
“Apple does not actually sell repair parts.”
Erica Douglas Jun 17, 2016 ▶ 8:21
Insight
Douglas: Never pick a device repair shop based on price alone
“So one thing I would say is never pick a repair shop based on price alone. Ask them about the quality of their parts and where they come from.”
Erica Douglas Jun 17, 2016 ▶ 9:36
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