Disclaimer: The Transcript Is Auto Generated And May Contain Spelling And Grammar Errors
DJ: 00:00 It seemed like it was so difficult to hit that first million. It
just took forever and hit it. Then, it’s like we eased into like the 2 million mark. I feel it just came
a lot easier than the first million.
Intro: 00:14 From ABC News Radio, KIBT 1490 in Southern California,
this is BizNinja Entrepreneur Radio, with your host, Tyler Jorgenson.
Tyler: 00:27 All right, I want to welcome everybody out to BizNinja
Entrepreneur Radio. We have another wonderful guests lined up. And today we’re going to be
talking with DJ Vallauri who is not only the founder and CEO of Lodging Interactive, a $7 million
company. But he also has started a really cool thing called HotelPAWZ. So we’re going to talk
about his journey, how he got started and why he’s branching out and doing this cool new thing.
So welcome out to the show Dj.
DJ: 00:52 Thanks Tyler. I appreciate the opportunity to speak to your
audience and share my stories with them. That’s helpful.
Tyler: 01:00 Looking forward to hear about it. So where are you?
Where are you coming in from?
DJ: 01:02 So we’re in New Jersey place called Parsippany New
Jersey. It’s about 30 minutes from Manhattan in North Jersey.
Tyler: 01:10 And so what is one thing right off the bat that most people
don’t know about you? But that they should know?
DJ: 01:16 Okay. Basically, I’m a serial entrepreneur. Meaning, I’ve
had multiple companies that I’ve started. My first one was an online store selling
mustard, mustard store.com. I was basically a reseller of hundreds of mustards all over the
world. Shipping Golden’s mustard you get for 99 cents to people in Japan would pay 4 or $5
for it. I mean it was a great business. I sold that, started another.com called the free
shipping.com which we came like an online portal for items that are all shipped for free.
Tyler: 01:56 Right.
DJ: 01:57 And you know, I just love the technology. The hustle of it,
putting the technology and the business together. Just finding the pain points for hotels
specifically. Now you know my career, I’ve been in the hotel industry for about 35 years. So I’m
kind of applying my love for technology, hospitality and sales marketing.
Tyler: 02:20 Very cool.
DJ: 02:21 Yeah.
Tyler: 02:21 So you’ve covered a couple of days. You’ve got a business
in a hotel and lodging. But you’ve also done a few different like ecommerce type launches.
When did you first realize that you were an entrepreneur?
DJ: 02:34 I think it was in the mid nineties when I started playing
around with the Internet and getting more involved with it. That’s when I had the idea to create
the mustardstore.com. It was really just the aggregation of the different mustards, all dropships
to the customers directly with ecommerce. But I had worked at that time in Avis, rent a cars
technology division. I headed up business development and was involved with aggregating
connections to airline systems, car rentals and hotels. So I think that’s where I really started
the entrepreneurial game, with the mustard store.
Tyler: 03:15 Yeah.
DJ: 03:15 Putting it all together, right? Sourcing the mustards, doing
the marketing and just learning by trial and error.
Tyler: 03:22 But you had started your career in the traditional
environment. You started doing entrepreneur and stuff on the side. What’s your advice to
people who you know are following a similar path through their career? They’re doing something
but they want to do something on the side.
DJ: 03:37 So the advices, I mean anyone can do it. You’ve got to put
in the hours. When I came home actually for this business Lodging Interactive, I was in the
corporate world. I was earning six figures, corporate Vice President of the publicly traded hotel
company. At night from seven to like midnight, one or two o’clock in the morning, I would work
on my side hustle which was to start this Lodging Interactive company. I think that the
technology especially today, levels the playing field, right? You can look online. You can look
like a billion dollar company now. And if you do your marketing right, you’ll be able to attract
customers to your business. So the advice is just take the time to do it. Like they all say we have
24 hours in a day. How you use those 24 hours? I don’t really watch television much and
especially when I was starting the company. I would just be in my extra bedroom putting it all
together. My wife is and was very patient still. You need to have a supportive partner or spouse.
Because it is going to take time away from family. The work life balance thing, I’m not sure exists
so much. But having put in the work and gone through the pain of putting it all together, now I’m
at a point where for the last 10 years I’ve been able to spend more time with my kids and my
family and kind of set my own schedule. That’s really the freedom that comes with being an
entrepreneur and being successful. You’re not tied to a desk all day long. But you do work more hours than you would if you worked for somebody else.
Tyler: 05:10 Right. DJ, you have some flexibility. But you also
brought up a really important point for entrepreneurs, which is that you’ve got to make sacrifices
especially at the beginning. Right? To get things in motion and get to your goals. So your big
business that you’re doing now Lodging Interactive, how did you make that decision? What
problem does that solve and what are your goals for that company?
DJ: 05:32 I started that company on the side while I was
still working for that publicly traded hotel company. I was actually in charge of digital and
marketing strategy for about 350 hotels. Okay. I had about four or five people working for me
and I said, you know what? I can’t get it all done with four or five people. What’s the smaller guy
out there who owns maybe three or four hotels? There’s gotta be an opportunity to do this. So I
told my wife, let’s give it six months and see what happens. We never looked back. You know, I
should’ve done it sooner and it’s grown successfully. Now we have almost 50 people on payroll.
And still the way I have with the company, which was interesting too. I set it up as a virtual work
from home. All my people work from home except for me. I have a corporate office in
Parsippany. But it allows you to go out and acquire better talents. Be able to get people
to work for you from home and give them the freedom as well that you enjoy as an entrepreneur.
So the goal for the digital marketing business of Lodging Interactive, we work with
hundreds of hotels across the country, do their internet strategy, website design, social media,
all that stuff is to continue to grow and put the proper people in place. So that I, as an
entrepreneur who always has these crazy ideas can continue to pursue that and have business
executives running the company. I can continue to collect a check, right? While I play
around with other different business opportunities that I want to get into.
Tyler: 07:05 What was the first big challenge that you encountered
while you were launching your business and how’d you overcome it?
DJ: 07:12 The first big challenge was really credibility and getting
that first one or two customers. I was working with the hotel that was willing to find a hotel
company. I was willing to work with you even though you didn’t have any customers, right? I
went out and actually provided services for free for two customers. They were big names, there
a Marriott and Sheraton. My logic there was if I can work with a 300 room Marriott, I can
certainly help you 150 room independent hotel in the middle of nowhere, right? So it
immediately gave me credibility. I would say don’t be afraid to provide your services for free as
you’re building your company. We still do that today. We’re launching new products and
services. All the time, we do beta tests with cupboards. That’s I think, credibility in the
competitive set that you’re playing in is important. That’s how I overcame it.
Tyler: 08:10 Yeah, it’s huge. I like how you did that. I have a
saying in our business that is we only do things for either free or full price. You know, so every
once in awhile you got to do some like that. You’ve got to do some free services to get some
credibility or to get in the door to get started. I personally have found that discounts can ruin the
relationship for both sides, right? But sometimes you got to, Hey, I’m going to do it for free in
exchange for a testimonial or I’m going to do an exchange so that I can put your logo on my
website or whatever it is to get that credibility. Then you went from there, started doing on your
own to scaling a team. What have been some of the secrets to scaling and managing a team?
DJ: 08:46 Well, I think you started off by just finding freelancers at
first. Those freelancers turned into employees for the most part and many of them are still with
me today after 15 years.
Tyler: 09:01 Very cool.
DJ: 09:02 Which is phenomenal and it’s great. The interesting thing is
that a lot of them, one guy in particular who still works for us. He’s based in Turkey and I
had not spoken to him for 10 years. We only communicated via instant messaging.
Tyler: 09:15 Right.
DJ: 09:15 We built that relationship and then I flew them in. He’s still
part of the team today. But I think you know what? Building a company like that is, you want to
have standard operating procedures in place. When you get to level, have 10 or more people, I
think it’s important that you have someone that has a strong operational background. I’m lucky
enough to have that one person. I’ve got many. But that one, that’s our chief operating officer.
She documents everything, does all the initial interviewing, etc. and without her I would be a
crazy entrepreneur. You know, just coming up with these things and not being able to deploy the
business? You want to have the support there as you grow. And going back to your comment
about discounts, you’re right. It’s either free or full price. But I would say that sometimes you’ve
got to give a discount. Because you got to always keep think as the business owner. How am I
going to make payroll next week? Right? And if there’s an issue with that, you’re going down
real quick. Payroll is that the most important thing when you’re just starting your company.
You’re trying to build loyalty and longevity with your employees and never want to miss payroll.
I’ve never missed it in 18 years. Sometimes you do what you have to do to get the business.
Tyler: 10:31 Yeah. So one of the mechanisms that we deploy that gets
the business but doesn’t discount or devalue is we look for ways to add value. It’s like, Okay,
you’re signing up for our social media packages, that’s X. But if you sign up today for the social
media package, we’re going to throw in our digital marketing package for free. What’s that a
yes? Is that the same as the discount kind of? However, it’s very different psychologically.
You’re not looked at as because you know with price it’s such a challenge. There’s a ton of
studies that have been done on this where once you discount price, it’s very hard to go back up
or to be ever perceived as having value of the original price point again. A perfect example is
restaurants that send out coupons all the time. Yup. What they do is essentially train their
customers to only shop when they receive coupons, right? And those customers have a really
hard time now going in and paying full price. They will sometimes but some restaurants do this
more than others and the concept is the same. Obviously, you’re 100% right. You’ve got to do
whatever your business needs to do to survive. If you don’t survive, it doesn’t matter what
strategy you deployed.
DJ: 11:38 That’s right.
Tyler: 11:40 Absolutely. So you’ve got you, as you’ve grown from that
first couple of hotels that you did and you grew to 7 million. What were the major revenue blocks
that hit you? Would you say like, okay getting to that first million dollar year revenue was the first
thing? How? What shifted as you hit each of these tiers?
DJ: 11:59 So, you know. I think it was so difficult to hit that first
million. It just took forever and hit it. Then, it’s like we eased into like the 2 million mark. It just
came a lot easier I feel than the first million. I don’t know why that is. Maybe just psychologically
or something. But it just. All of our businesses based on retainer. So it grows month after month
and we have very little attrition rates from our customers, which is good. I think that the issue
you have is, as you continue to grow like this, it’s like how large do you want to get as an
Entrepreneur? How involved you want to get with a business as far as running it day to day?
That’s where I go back to having a strong COO and president who can run the company
and have the skills. I could probably do it because I could do anything in my business. But not
as well as someone who’s got all of that experience in running companies, small companies. So
it’s important to get that in place at a certain level. Now I’m at a point where I have a COO. I’m
still the founder and the president. But at some point, that COO is going to graduate into the
president role. We’ll look to fill that position and then I’ll be able to exit the business. Start
playing around with other business ideas.
Tyler: 13:16 Well, so bringing that up, you’re in the hotel space, right?
You have another opportunity that you’re working on with a nice build HotelPAWZ.com and
that’s positive “z”. HotelPAWZ.com and it recently been two years. It still feels fresh. We got our
first dog. As in the family love to travel. When you mentioned this to me, I realized, man, there’s
a real demand. So, explain to me the problem that your new business solves. And how you guys
DJ: 13:46 Sure. Absolutely. In the hospitality industry in North
America, 60% of hotels allow people to bring their pets with them, mostly dogs. Sometimes they
allow cats. But it’s mostly dogs for some reason. I guess the cats, they don’t
Tyler: 14:00 want to get allergies and stuff
DJ: 14:01 and yeah. While you can bring your pet with you in
these hotels, Ritz Carlton, Four Seasons, etc. and a lot of mid market hotels too, you’re not
allowed to leave your pet alone in the room because it will bark. Maybe you don’t have the
proper crating and involved there. You know, housekeeping comes in, things can happen,
right? They say, bring your pet. We love him. Great! We’ve got special beds for them and
mortar balls, blah blah blah. But you can’t leave them in your room. Okay. Now, you’re in New
York. You’re traveling and you have your pet. You want to go see a Broadway show or go out to
dinner with your wife. You can’t really do that and leave your pet alone. I got the idea and
started talking to different concierge departments in different hotels that we work with and asked
them how often do they get a request for a pet sitter to come to the hotel? They say, it happens
every week and we’re scratching our heads and pulling our hair out trying to find out who to
bring in. That’s where I got the idea. It’s like babysitting but for pets. Service basically connects
through our technology. Our website connects the pet owner who’s traveling with the pet sitters
that we’ve already vetted, actually have gone through the vetting process. My daughter’s
involved with the business. She’s a professional dog trainer.
Tyler: 15:18 Oh cool.
DJ: 15:19 Because she does all the vetting of the dog trainers. We
then connect. You come to the site. You see I’m traveling to Myrtle beach. I want someone to
come to the hotel on this day at this time. We send it out to our pet sitters that we vetted out,
background check too, etc.
Tyler: 15:36 Right.
DJ: 15:37 You get the confirmation. Send it back to the client. They
pay with their credit card. We’re all good.
Tyler: 15:43 Wow, that’s amazing! It sounds like it’s a growing
problem and the concierge departments are saying it’s happening weekly. This is just of the
people who traveled without even having the problem solved, right? So there’s probably a larger
percentage of people who chose not to bring their pets because they didn’t have expect.
How long ago did you start the business?
DJ: 16:03 Well, I’ve been working on it since November, 2018. But
we launched April 1st. It’s April 1st when we publicly announced it.
Tyler: 16:12 Yeah.
DJ: 16:13 We’re in 12 cities now and by June we’ll be launching
another 25 cities.
Tyler: 16:17 Holy Cow!
DJ: 16:18 I want to get to critical mass. You know, pretty quickly
because the worst thing that can happen if someone goes to the website, they’re looking for
their city and there’s nothing there.
Tyler: 16:26 Right.
DJ: 16:26 Right now, we’re going to engage a public relations
company to help us build that part of it. I could spend a lot of money on pay per click advertising
to get visibility. But I think earned media and this situation will go a longer way in blog stories.
You know? Interviews like this are great organic growth and repurposing. I think it got
legs and the cool thing about it, is we don’t need a large infrastructure to make this happen.
Tyler: 16:26 Right.
DJ: 16:57 It happens raisely. All online. Everything’s paid for
online. The pet sitters are sourced. They’re not employees, they’re contractors. You don’t
have all the additional expense of payroll taxes, benefits and so forth on contractors. The
other cool thing is that from a liability standpoint which is something every entrepreneur should
also consider. It’s minimal as compared to actually doing the pet sitting. We are not doing the
pet sitting. We’re like Uber. We connect it to you for sure.
Tyler: 17:30 Yeah. Because they’re contractors and not your
employees, you’re basically just finding the service and connect with each other. That’s a
really cool service. A cool problem to solve it that I haven’t seen anybody else going after. What
I mean, I love that you started in November and you’re already live. There’s so many people I
know have a business idea. They have the idea for five years before they even do it and then
they never actually do. What was it so far as you’ve gotten started? What was a challenge
that you hit and how’d you overcome it?
DJ: 18:02 My initial challenge was our thought. That my biggest
issue was going to be finding pet sitters. I will tell you that I’ve learned a lot about this business,
the pet sitting business. Literally thousands of people across the country that have pets in their
local regions enjoy doing it. They’re professional pet sitters. They charge for pets to come to
their home, right?
Tyler: 18:25 Right.
DJ: 18:26 But they don’t actually do the hotel part and they’re all
excited about doing it. Finding pet sitters, I have an approach on how we do it. We advertise
on Craigslist. We have a specific pitch and advertisement. We put on there and within 24 hours,
no joke, we get over 200 applicants. I have to turn it off at times. It’s just too many people
coming in. Everybody wants to get that gig economy and they love animals and pet sitting. This
is a perfect spot for them. So we put them through again, like I said a vetting process because
it’s not for everybody. We don’t want to work with everybody. You know, some other companies
like Wagga Rover, now they’ve got an application on a phone. Anybody that’s 18 years or older
who can pass the test basically can walk a dog. I wouldn’t get to talk to a stranger like that in
our space. We’re actually interviewing these folks and doing background checking to make sure
that they’re already established as a pet sitter in their community. So having and finding the
people I thought would be the hardest part. But it turned out to be the easiest. That was a
Tyler: 19:31 It’s fascinating. That part’s easy. Now you’re going to be
DJ: 19:36 Right
Tyler: 19:36 Launched in April, like just last month? Right? How long
did it take before you had your first actual booked?
DJ: 19:44 It took about two weeks. Okay. That’s pretty good. Yeah.
And we did that through PPC advertising.
Tyler: 19:49 Yup.
DJ: 19:50 The volume is there. It’s as I expected. You know, as
far as the business and the flow of traffic to the site. Having done websites for 20 years, now I
know what it takes to market. The big guys are spending a lot of money like Expedia and
Travelocity. Those guys, hotels.com they spent a lot of money to push down the brands so they
can get to the top. You know, the top of the funnel search there. We have the same thing
happening with HotelPAWZ, our competitors are the Wags and the Rovers. They spend their
value of hundreds of millions of dollars. I don’t know if they’re profitable yet, but they’re the big
guys out there. No one has gone into the hospitality niche and that’s not to say that they
can just flick the switch. Also do it as well, the partner. But you have to understand how hotels
operate as well.
Tyler: 20:44 Right.
DJ: 20:45 Very different business. You can’t have people come in off
the street and walk up to a hotel room and say, I’m here. I’m the pet sitter. Right? So we have a
loyalty program, their concierge. A department can sign up and for every job that
they recommend, they earn a bone. They get a certain amount of bones. They get a gift card
from American Express. We’re putting that in place now to help get more business from the
hotel in addition to whatever we’ll get from the website, from consumers, right.
Tyler: 21:15 Very cool. What I mean, how did you figure out pricing and
that sort of thing for the consumer?
DJ: 21:21 Well, I looked at and did some research on what a typical
pet sitter would charge you to drop off your pet on an hourly basis at their home. Or for them to
go to your house three times a day just to give them water or take him for a walk? That kind of
Tyler: 21:35 Right.
DJ: 21:36 Then just decided. I’ve always had dogs and I know
they’re part of the family. For me, I would spend. We’re charging $49 per hour. Minimum two
hours for someone to come to my hotel, take care of my dog that I know has been fully vetted as
a professional sitter. I thought that would be a good price point to start with $49. We do a
revenue share back with the pet sitter. That’s what we’re starting. We may adjust that
rate up or down and we may have seasonal rates. Different cities may have different rates. If
you’re traveling, staying at the plaza or the Pierre Hotel in New York and you have your dog, no
doubt you’re willing to spend close to 100 bucks an hour.
Tyler: 22:16 Right.
DJ: 22:17 I have someone come in and take care of your pet.
Tyler: 22:19 Yeah. And for people that are curious more about
this specific service, is the pet sitter just going to hang out in your room? Did they take them
for walks or how does that work?
DJ: 22:29 Sure. The pet sitter does go up to the room. They use
the house phone to call. Say, I’m here and they go up to the room. They get an extra key while
the guest is out. They stay in the room and they take the dog out for a 30 minutes walk as well.
If it’s an hour thing. Yeah. I think to that, what’s going to happen is it’s going to continue to
evolve where people are going to book more than two hours. You got to New York to see
that Broadway show. You’re out for five hours, right? You’re going to dinner and
then watch the show. There’s a lot of add on revenue that way that we’ll be able to generate.
Tyler: 23:03 Yeah. Absolutely. I don’t think you’re going to have any
issues with people book more than a couple hours. It’s pretty cool.
DJ: 23:09 What really surprised me too is we had one hotel
company tell us, come to our city because we’re a destination city. A lot of people come here for
weddings in their hotels and they bring their dogs. So they leave the dog in hotel room while
they go to the wedding. I never thought about that. But that may be a market that we want to
Tyler: 23:29 Yeah, absolutely. I mean it sounds like there’s going to be a
lot of other ways and I love that you took something that was already out there, right? Pet sitting
is not a new concept. But then you thought, Hey, I work in. You already work in hospitality and
You’ve known how could you vertically integrate. You took that sounds like a service that you
would need as a dog owner and immediately apply that into your existing concept already date,
niche or industry. Pretty cool stuff. Yeah from what you know. Again, I’m impressed that from
November, now you’ve launched and gotten already first bookings, what are some advice that
you’d give to entrepreneurs who are struggling and taking those first steps?
DJ: 24:09 Well, the advices. I mean, like everyone says, you learn by
your errors, right? Making mistakes. There’s no shame in making errors and making those
mistakes. You just learn from them. I think you have to do now, just go ahead. Get it done
and try it. If it doesn’t work, you know, the $49 rate, like I said may work in New York but not in
Myrtle beach. Maybe a different rate all together or seasonal. I’m not opposed to changing that,
right? No one says I can’t change the pricing, right? So, get away from those thoughts or
confinements in your head that you can’t do something. Because no one’s ever done it before.
Just do it and learn as you go along.
Tyler: 24:46 No, you can’t be stressed at it. You have to get it right the
first time, right?
DJ: 24:50 That’s right. You can’t be. Because no one gets it right the
Tyler: 24:54 No. A friend of mine had just did a post about how Elon
Musk. He only had enough money in the space X to do three rockets.
DJ: 25:03 Oh.
Tyler: 25:03 And all three failed.
DJ: 25:05 Wow.
Tyler: 25:06 And so he had to go out. Like kind of beg for more money
to do the the work. Then that one worked and whatever, no pun intended. It took off from there.
But I think sometimes, people who are, who want to be entrepreneurs think that you have, they
only see the success stories, right? They think, Oh man, if I’m going to launch this, I don’t want
anyone to laugh at the website or I don’t want anyone to make fun of the the first logo or shoot
me down from the pitch. But the thing is, that’s what helps you craft the message and refine the
business. It is the failures that will actually refine the message and make it work. I think you
mentioned like you have, you’ve got to realign, right? You’ve got to re take those failures and
stop looking at them as negatives and say, Hey, this is what’s going to make it work.
DJ: 25:55 Exactly. That’s right. You have to keep reiterating
and just rolling out new enhancements and trying different things. No one trick I’ve found over
the years too. Let’s say you have a product or service you want to launch on through your
website. I had one entrepreneur tell me what he does is he sets up a buy now button next to that
product and it goes to a page that just serves up. You know, we’re not ready yet or, and he’s
counting how many people click on that buy now button before he gets all involved in actually
setting that product up for sale.
Tyler: 26:27 Good. Yeah, that’s absolutely. That’s how I test new ideas.
DJ: 26:30 Absolutely.
Tyler: 26:31 I’ll capture their email address so that I can see, Hey,
these guys are actually interested in buying it and then I can decide. I can run the theoretical
ROI. Decide if it’s worth investing and getting the product or not. If it is, then I email them
all, Hey, we’re back in stock, right? If that’s not, usually what I’ll do is I’ll email and say, Hey,
we’re not back in stock. But here’s one of our competitors. They’re amazing. They’ll take care of
you and I get affiliate revenue. Yeah. There’s a lot of great ways to be smarter about testing. But
the bottom line is that all of them involve actually getting things done.
DJ: 27:05 That’s true.
Tyler: 27:05 Not just sitting around talking about the idea.
DJ: 27:07 That’s right. Yeah. You gotta be able to execute, right?
That’s the thing. It doesn’t have to be a perfect execution. You just have to do it. And that’s I
think what separates, the want to be entrepreneurs and the ones that actually make it happen.
Everybody’s got a great idea. But very few will actually deploy it and try to do something against
Tyler: 27:26 Exactly. Yeah 100%. Dj, tell me, since you talked about,
work life balance and all these kinds of things to me, businesses are about creating the lifestyle
that we want in grading that freedom. What’s one major item on your personal bucket list that
you’re going to accomplish here in the next 12 months?
DJ: 27:44 Hmm, interesting. Well I think, I’ve been doing a lot of
traveling this year and my wife’s come with me on those trips. We always tie in, business work a
couple of days and have another couple of days of leisure time. We’re going on a big cruise, a
Viking cruise in August throughout Europe.
Tyler: 28:02 That’s exciting.
DJ: 28:04 But I think, I want to continue to create the HotelPAWZ
business where it basically becomes a business that can be run from anywhere in the world,
right? With a laptop and with an Internet connection, I don’t need to be there or whoever’s going
to run HotelPAWZ. It doesn’t need to be in an office. You know, all that’s gone these days. I
think that’s the thing that excites me the most is the business has legs. I look at that, you know,
everyone you talk to, all great idea, great idea! We’ve had some business flowing through now
so we can continue to grow that. Continue that business. I think it could be a multimillion dollar
business, you know? For sure. Okay. Can you run it from your boat in The Bahamas, right?
Tyler: 28:45 Awesome. I’m loving it. All right guys. So please go check
out HotelPAWZ.com see if they’re already available in your city, and now it’s your turn to go
out and do something.
Outro: 28:55 Thank you for listening to BizNinja Entrepreneur Radio with
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