Founder of UsedCardboardBoxes.com
Marty Metro loved the idea of buying something used and selling it for a bargain. He had watched resale shops do it successfully for years with everything from clothing to sports equipment. "EBay became a $10 billion company selling something used cheaper than new," says Metro, a former IT consultant for Fortune 500 companies.
But when Metro saw a moving truck loading boxes during a cross-country drive in the late 1990s, he recalls talking to his wife about how difficult it is for people to get rid of boxes after they’ve moved. "They break them down, tear them up, but they still don't fit in the recycling bin," he said. That casual conversation ultimately inspired him to leave his lucrative tech career in corporate America and strike out on his own. Metro's idea was to connect people who have used boxes to those who need them. At the same time he'd keep a lot of cardboard out of America’s landfills and help the environment.
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While Metro passionately believed in the concept, little did he know he would first fail miserably at retail and sink deep into debt before turning it all around. He would have to recast his eco-friendly idea and create innovative technology to help him ultimately build a nearly $10 million business.Still, there were five years of hard lessons learned along the way. Metro's journey is one of inspiration, innovation and perseverance, which all small-business owners can learn from.
In 2002, Metro got his start by founding Los Angeles-based Boomerang Boxes, a retail store that sold used cardboard boxes, primarily to people moving into new homes and apartments. His father, a CPA, was skeptical, saying, "You're going to have to sell a hell of a lot of boxes to pay your rent."
It turned out dad was right. Selling $1 boxes out of brick-and-mortar locations didn't quite pay the bills. By 2005, Metro was forced to shut down Boomerang Boxes' four locations. Consumers appeared to love the idea, but the company was losing $15,000 to $20,000 a month and wound up $300,000 in debt, which Metro is still paying off today.
Still, Metro refused to give up. He started working on a plan to sell used boxes online, but in a unique way. "Historically, no one really sold boxes -- let alone used boxes -- online," recalls Metro, now 40. "They were too expensive to ship, so most people just went to a retail store (and asked for their discards.)"
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But in 2006, he secured $300,000 in venture capital to build an online store called Usedcardboardboxes.com. Metro's distribution centers -- owned and run by third-party logistics teams -- make shipping more efficient and inexpensive since they're strategically located across the country near the major cities of Los Angeles, Salt Lake City, Phoenix, Dallas, Atlanta, Chicago and near Syracuse, N.Y. The company also owns and operates its own facility in Baltimore.
By 2008, Usedcardboardboxes.com had grown to $1 million in annual sales and demand was quickly beginning to outweigh supply. Metro needed more boxes, so he started buying and selling used boxes from national companies, expanding his customer base beyond consumers.
For Metro, the greatest challenge then became tailoring his used offerings to specific needs. When a company requests a 12-by-12-by-8-inch box, for example, nothing else will do. That's where his tech expertise has come in handy; Metro developed custom software that automatically matches what companies need with what he has access to.
If a company needs 100,000 boxes, that information is put into a database that checks what boxes are available, the cost to ship them and the price Metro has to charge to make a profit. His IT staff updates the software and improves it almost daily. "It is very much the core of our success and a major factor in our future," he says.
Metro's software and monitoring system includes a business-to-business portal that offers big companies the option of viewing real-time inventory and ordering directly from the distribution centers.And he can access data from each distribution center right from his computer -- or even his phone -- which allows him to quickly identify and manage any issues or problems as they come up.
Electronic Recyclers International, which recycles computer components and other e-waste, has been a customer for three years. Chief executive John S. Shegerian says buying used cardboard boxes not only saves money, but also fits in nicely with his company's green goals. "We make it a cultural thing. Even our forklifts are hybrids," he says. "They have a great business model that supplies the boxes we need -- when we need them -- and they're recycled."
Meanwhile, Metro's father is no longer worried about his son selling cardboard boxes. The company's annual sales are just under $10 million and growing fast, according to Metro. He now has a few hundred business clients -- including a dozen large corporations. And the company's average order has gone from a $100 moving kit in 2006 to an $8,000 truckload today.
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Comments:
I love this article. As an entrepreneur myself for many years, I talk about the concept of embracing failure quite often. Failure and learning its important lessons is a key component of entrepreneurship. I detail this topic and make some strong arguments for it in my latest blog post here: http://www.presidentspilotsentrepreneurs.com/2012/01/beginning-entrepreneur-failures.html I think too many new entrepreneurs expect to hit it big right out of the box but that almost never happens. So often we see stories of successful entrepreneurs but seldom see the struggles and mistakes they made before reaching the pot of gold. I decided to document some of my biggest mistakes and the lessons learned and compile them in my upcoming book Presidents, Pilots and Entrepreneurs. I really think we need more stories and details about the mistakes and failures of entrepreneurs, followed by their triumphs. New entrepreneurs can learn from these mistakes and avoid repeating them. This will go a long way in helping new entrepreneurs increase their odds of succeeding.
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I think green/sustainability is a very good strategy if it's communicated to customers effectively.
Great efforts i really like it and its motivational for me
This is very inspiring. Our photography business http://www.robertash.com has a similar philosophy. We recycle the packaging from our vendors' supplies, especially for shipments we make to our other vendors. We will for small business we buy from ask that they return ship our supplies or framed / mounted / matted fine art print inventory in the same box we shipped it to them in. As long as the boxes stay in good shape they'll stay out of landfills. Plus we can recycle the cardboard when the box wears out.
Great story...I am moving to the NJ area from MD because I am planning to wed my fiance which means someone has to move. So I am looking for similar business ideas. I find the story very inspirational and getting me to think outside the box. Do you have any more ideas to share that I can explore? Thanks Sumatuinc@hotmail.com
I loved the idea that you can take a concept such as selling used card board boxes to a new client for a profit and at the same time help to keep these boxes out of landfills. The person first failed but kept on plowing on until he succeeded. This is what makes America great. Love this story. http://savingshouse.blogspot.com
That is great. Who built your database? I need someone who can build an online searchable database for our customers. email: bizinterns@gmail.com
So inspiring, especially to those who come to that place where they think about 'giving up' on their dream/belief.
Why? What hate a nation?
yeah I didn't get that part either... isn't that date done? lol
Look like hard work and perseverance paid off. http://greenconstructionmart.com/
10 million in sales and till paying off an 6 year old 300k debt?
Marty is a hardworking tenacious go getter. Great guy who deserves every success!!! Mitchie
Lisa, you've listed the turnover but do you know how much profit the company has made? Thanks, Pascale
green power,is the latest in the special forces that moves our economy forward ,this article shows that feature in it best,we start recycling and paying attention for what we use and trow way more then ever. especially when you run a business ,we start to realize that we actually can save money or make one by saving our environment too. i have a great tool that i use now it is call soho os,its a platform that i manage all my business free and easy,i can send emails,fax,electronic invoices or even sms from the system ,without even one peace of paper coming out from my side. i save money,time and helping the environment in the same click,www.sohoos.com my way of saying i care.
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Love it - see a problem and solve it. If at first you don't succeed keep going. And especially love the part about keeping landfills free of cardboard. Live With Intention, DrBillTothCom/Blog
Love it!
Congrats, Marty! I met you several years ago when interviewing for a position with your company. You were engaging, honest, humble and 1000% committed to the company's success. Your tenacity has paid and continues to pay off. All the best to you.
It's quite not true because every year out of more than 2 million businesses created in USA, only about average of 600-800 businesses receive venture capital funding.
$300k venture capital? That's why the US rocks for business startups and why the UK will always be an under-nourished, in-bred cousin. Marty would still be trying to sell boxes out of his parents' garage if he was British...
I used this company in 2008 for a cross-town residential move. The boxes were great and I know from previous moves that I saved a TON over the typical costs from a moving company. I had more than 40 book boxes alone, plus wardrobes, mid-size heavy-duty for kitchen, the works. (In a previous move, the moving company packers had arrived with one flat of boxes that had been crushed in the warehouse and had great tears in them! No such problem with these!) Way to go; as a former commercial banker I know how tricky start up businesses can be. You've got a winner!
Excellent.spread your wings outside america also.
What a great concept! The innovation and attention to green detail is inspiring!
I love Mr. Metro determination and passion to succeed, I am inspired by his story, most people will just pack it up and quit completely after the first failure, but he regrouped changed strategy and kept at it and eventually succeeded. I can relate to his story, I have had my share of failure, but the entrepreneural thing in me wont let me settle, I have been told to just settle with a more secured 9 to 5 job, but thats not me. I am happy to read that Mr. Metro's company is doing well, the world need more of Mr. Metro. -Maurice Mbata, Founder/CEO, http://www.shopkolo.com " helping make online shopping a reality in Nigeria"
I'm so glad I stumbled into this article. What a brilliant idea and a truly inspirational startup success story! Marty, I share your passion for being eco-friendly and helping the environment. I am in IT too, and hope someday jump on an opportunity to follow suit with a great business idea like yours.
The man is a genius!
Great story, let me know when your coming to the UK
Way to go Mr Metro! This solves an almost universal problem (needing boxes) and keeps cardboard from being needlessly landfilled. Hope you make a ton of money Marty!
Quite motivational!!! Thanks
I purchased these recycled boxes online for a major move. They arrived the next day, in great re-usable shape, clean, and in good condition. I highly recommend Marty's usedcardboardboxes.com to anyone out there needing boxes.
Looks like Uncle Harold.
Wonderful business and save the earth too, everyone wins and make $$ too. I am very interested in green and organic, and I think the world will demand more of it. Why not, less polution, safer, healthier etc. Wondering how cheap(if any all) he paid for used boxes and what profit margin is?
Great idea, great article!
THE used cardbord boxes was the best thing called one day got them two days later with tape , and tape gun,paper Everthing i needing THAK A LOT BEST COM for boxe's
That's my husband!!! Go Marty! Go UCB! Save Time, Save Money, Save Trees! Finally, a company that can help you do all three!
Hi everyone - I'm marty (founder of UCB, above). Other than the fact that the pictures make my head look like swollen turtle, I'm deeply honored and touched by the article, the responses and the impact we are having on not just Corporate America, but every day consumers. With great gratitude... THANK YOU!!!
great article!
I'll be gosh darned. What and amazing article. We need to see more from this Marty Metro.
YES PEOPLE!!! Being conscious, smart, GREEN means reducing, reusing, and THEN recycling what cannot be reused anymore. THIS IS NECESSARY We must all adopt this mentality! Respect, Mr. Metro. RESPECT!
My restoration company contractor thought I was nuts to try to find a use for my 206 boxes after I unpacked. I ended up giving them away on freecycle.com. It's great to see the success of someone with a good idea who works hard to implement it, and for such a good cause. Think of the thousands of boxes that are trashed every day. I wish Metro much success.
you said..."Consumers appeared to love the idea, but the company was losing $15,000 to $20,000 a month and wound up $300,000 in debt, which Metro is still paying off today. " If the company is making that much money... why not just pay off the remaining balance?
This subject and I go way back. Perhaps one day I can reach out to this company and provide my exertise in Used and New Packing Material. Regards, Keith Burks
Wonderful article! I had the pleasure of meeting Marty years ago and can vouch for the fact that, not only is he an intelligent business man, but he has integrity. It's truly rewarding to see someone with such passion and drive earn such huge success! Marty is the real deal.
Great article!!
This was fantastic...stirs the entrepeneurial spirit in anyone so inclined. There are needs out there just waiting to be satisfied.
please i need network and coordination of work, god bless u.
A creative solution to a common problem--we love this!