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Hey Padel enthusiasts welcome to Padel Smash Academy, I am Cesc and I am here with Julian and we're all about Padel! Whether you're new to the sport or an experienced player, you've come to the right place. Our goal is to provide you with the best tips & tricks, news, and weekly lessons to help you improve your game and take your Padel to the next level. So grab your Padel Racket and let's get started with all things Padel on Padel Smash Academy.
Today's guests are
founders of Paddle Drop.
They provide, uh, paddle equipment
inside a vending machine.
Welcome, Alvaro and Jerry.
Welcome to Paddle Smash Academy.
Oh, and we are all Things Paddle.
I'm a amateur player of Paddle.
I started to play more or
less two or three years ago.
Why have you never played any
other sports besides that?
Football, football, but, but
no, anyone rocket, any rocket
sports, any I ever played.
And so it's really big in Spain.
Right.
So did you see it all your life when you
were a kid or, no, I played, I played
football, uh, since I was a kid until
I have, uh, 20 years, uh, later we do,
uh, trilon, but more or less at the
Kobe started, uh, I started to play.
Paddle.
Paddle.
Right, right.
I think that's what everybody
started doing once Covid came
and started playing Paddle.
Right.
How about yourself, Jerry?
When did you start playing paddle?
Did you always play paddle?
Uh, I've been playing sports all my life.
Uh, when I was Aquila, uh,
I was living in Mexico City.
In, in the club we have a
paddle Clares tennis, so I play
like every racket sport like.
Not like competing in, in each one, but
I know I learned how to play everything.
So did you start tennis or a
different rack sport first before
you played paddle or Yeah, yeah.
I used to play tennis or used to
play squash or also know badminton,
uh, racquetball, uh, like myself.
Yeah.
I played front in Mexico.
We had fronton.
Uh, it's.
It's big in Mexico City.
So when I started playing paddled,
uh, then I, when I was, uh, older,
I, I play only football, soccer,
uh, like five times a week.
That was my sport.
Then I, uh, paddled, uh, came to Monterey.
I live in Monterey, Mexico.
It's in the north in Mexico.
And then paddle came like four years ago.
Then a friend, uh uh,
Pile club down there.
And hey, let's go play paddle
and say, I know how to play.
Right.
Great, great.
Now are you originally from Mexico?
Yeah, I was born in Mexico City.
I, uh, let me, let me tell you,
says that I had the privilege to
watch them play both of them and
they're extremely talented players.
So we play them yesterday actually.
Yes.
I think they wanna rematch.
Yeah, they, they wanna rematch.
Yeah, yeah.
But in the ring we almost
got that way, but forever.
So, so let me ask you, so how, the
idea, because I, I, I, I saw the
product, I saw it in Spain, and I
think it's, it's a Bri, a brilliant
product and a, a brilliant concept.
Have a vending machine.
Uh, for everything related paddle,
especially equipment, which are,
you know, uh, both most importantly.
So how do you walk us through the process?
Everything starts with an an idea.
Then how would you move forward to the
next step and next step and next step?
Eh, I'm a, I'm a amateur player
for Paddle, so I, one year ago,
um, more or less, eh, I am playing,
I was playing on, on a club.
And I see, uh, the clubs don't,
don't offer, uh, any brands, uh,
for walls or for accessories.
Eh, only offer one brand because it's
easier for them to, to, to negotiate
with the providers or, or, or have the
stock or, or any, or anything else, eh,
and if I want to play with head balls
or with Bull Paddle or any other, Eh,
the club only offer one brands or two,
or, or anyone's, uh, they, they decide
this is because the, the accessories
for the panel is of the record business.
Yeah.
In the cloud, it's only small vertical.
We also, we also think, uh, like having a
big pressure with a lot of employees, it's
a problem, uh, in Europe, also in America.
Yeah.
So here too, all the clubs,
uh, the big, the important
clubs are trying to automate.
So we see an opportunity in there with
the machines right now selling balls.
Then we are selling products,
uh, we're, we are having more
ideas like for the future.
So let's talk about that.
What products are in your
vending machines right now?
Yeah.
Uh, we have balls,
different kind of balls.
We have a paddle balls in some clubs.
We also have tennis balls.
Okay.
Uh, we have over grips.
We sell package of two or four
because we, we think why sell one?
If you play with, with a couple
or with four people, pretty much
grips, uh, you got the balls, right?
Uh, anything else?
We, we are, uh, merchandise,
like socks or, or t-shirts.
How about wristbands and things like that?
We have also wristbands.
Okay.
Like the thing is, if, if
you forget something, uh,
you can, you can like have a.
It's back up.
Yeah.
You have option, right?
Yeah.
And lemme ask one thing.
So you can customize it
for each specific club.
Yeah.
The, the club decide, the club
decide what, what products
are in, in her machine.
So, so the machines, are they
made to, to hold those products
or do you have to customize that?
Those machines?
Do you guys do that or does, uh,
the, the machine company, the,
the one you best or providers?
Providers.
For providers, we have, uh,
different providers, like with a
lot of experience, so we, we talk
to our provider, we need this.
And he assures to do the, the test
if, if the heavy of the product will,
will follow down and everything.
Right.
Now, can you guys do rackets in there?
We, we are working.
Not yet.
Not yet.
Not yet.
Yeah.
Yeah, because the rental of
racks, I think that's pretty big.
Right?
We can, but we are not offering
that service right now.
Okay.
But we are working on that.
It's, it's, it can, so it's
going, we're a test now in Spain.
We have a, we have a test, uh, machine
that we are doing tests right now.
So what's the biggest like, uh, um,
revenue that, that the machine creates
is pretty much on balls, right?
Yeah.
Right now it's balls.
Do you see that changing
if you guys do the rackets?
Of course.
Depend the cloud's, the, but, but
I think in, in us, in us rockets
is, is our main market market.
Because, because here how much
you, you, you, you do selling a
rocket and selling enough Canada.
Well, it's, it's not, it's not selling it.
I think it's renting.
Renting.
He, he can talk about that.
Oh, yeah.
Uh, the clubs usually make a decent
amount of revenue there, and it's
definitely a big percentage of,
of, of the vertical, uh, uh, there.
And when it comes to renting, uh,
paddles, the renting, it's a, it's
a very, it's, uh, More difficult.
Uh, you need a bending that.
You can assure that they
return the same product.
Well, if you're collecting information
like the credit card, uh, information.
Right.
Can't you put a deposit?
Yeah.
But for example, you can return a
different bracket, for example, shouldn.
Then you just charge them
for the, for the record.
No, but, but we will it.
That is a problem.
It's a problem.
But because customer, you have no rent.
Yeah, for sure.
Gotcha, gotcha.
Yeah, I, if you need enough paddles
in there for, for selling, it's okay.
Because if it's like, but for
renting, for most people are selling
us, it's a big nut, uh, to, to pay.
I think a lot of the, uh, clubs.
Uh, when it comes to people who
are just starting to play, they
don't wanna invest in, in a paddle.
So they're renting and sometimes they
rent to the point where they're spending
more than the actual real racket.
Yeah.
Yeah.
And that's, you know, that's
another, uh, uh, you know,
another revenue for, for the club.
And I think that the, the touching
back to what you guys were saying, I
mean, most of the clubs now worldwide,
they're, they're trying to minimize.
They're employees, you know, have the,
the operational cost, have the lesson
by, by you guys providing this service
going into digital now you don't need
to hammer someone behind the desk giving
you the balls, giving you the wrist mask.
Now everything is, you go to the
machine, you tap it, and then you get
it, and then you walk away because, More
and more clubs, especially in Sweden.
There are, you know, old digital
clubs where there's no people there.
You just walk in and, and I just, I I've
been on, uh, I was in Sweden and on March,
and I, uh, I visited a lot of clubs there
and, but I, I don't remember the name, but
I visited one club with no one employee.
Really no one.
And how does it work that, I mean, you
should, you need, uh, you, you scan a
passcode if you're a member or if you
get a, a reservation by an app, uh,
they send you a passcode or a qir qr,
sorry, uh, you scan it, uh, open the
door, then you get a machine inside.
For renting and that for me, that
machine doesn't work very well
because you open the door and you
can take whatever it's inside.
Oh, so it's sort of like you open
the door and you grab any, any rack.
Yeah.
So that's for bolts and everything
or, or they have vending
machines for bolts as well.
They have rackets and bolts in the same.
But this machine, for
example, have two problems.
One, eh, only one, uh, the club that only
have one brand of rocket and one brand
of balls, of course, because, uh, this
machine works with weight sensor and,
uh, all the balls need, uh, uh, need
to have the same weight, same weight,
and the rocket for different brands.
For example, if you have 10
models of rocket, Each model have
different weight for the waste.
Also, you can have the same bracket
and, and, and the weight is different.
Right?
Right.
One is 360 4 and the other one is 300
and and 68, because they're all manmade.
Yeah.
Yeah.
It's not by machine.
So it could be off a little bit by grams.
Yeah, I definitely noticed that.
Um, okay, so let's start
from the beginning.
How does a club, let's just say, uh,
if I have a club, how does it benefit
me from having a, a, let's say, vending
machine there and how does it work?
Does a club have to invest anything?
No, uh, no.
And then so, uh, how about the
maintenance and, and what will I see?
How will I benefit financially?
Uh, if you are an owner, I come to you and
say, uh, how much bills you sell a month.
Mm-hmm.
You need to know it, then I do
like, uh, I offer you a commission.
Okay.
What you get, uh, you have
to know, invest, know, stock.
No deal with the providers, right?
And you, the, the best thing in here is
you, you're giving a, a very good service
to, to your clients, to the player.
You as a player, you prefer
to have a pending machine.
You can decide of his binger, of head
of four or five different brands.
If you have only one person in the front
desk, uh, maybe it's in the bathroom.
Maybe it's in the lunchtime.
Yeah, maybe that day.
Oh, we finished the balls.
Right.
So you need to stock it in with us.
Yeah, you need to, you, you, no
investment, no stock, no deal with the
providers and five or six different
brand and you get a commission.
The club doesn't do anything.
Anything.
Okay.
So I think clubs are gonna
want anonymous number one.
What commission do they get?
Number two, is it worth or while?
Because most clubs will sell their
products and most, most clubs
will have, they'll need to have
an employee there regardless.
So that employee can do
multiple things, you know?
So it's a worthwhile for a club to do it.
The commission, it depends on
the numbers of, of kds, of the
numbers of balls they sell on.
Depends a little bit on the price.
They wanna sell it.
Okay?
Because the club decide, we can decide.
I don't want you to put like
more than eight, nine, $10.
So it depends.
If you are in your club,
in Doha, the day sells.
100 guns a week or you, and $13, I can
give you 35% commission for the club.
So what's the a, what's
the average do you think?
From what to what?
15, 20.
Okay.
All right.
Now, is it worthwhile
for the club to do it?
Because a lot of clubs already have an
employees, so they're already having them
do multitask of scheduling and also sales.
Is it worth a while to do it for the club?
The, the, the, the bulls are
like, uh, 3% of the income.
Or less or less, some clubs, 1%, 2%.
So regardless, you have an employee,
you can put that employee to do another
things, do something else more important.
That in Mexico you have an employee,
that employee needs to go to the start
to do one can, they can install the
record in in one second, you know?
So, so is that, is that
your selling point?
Is that, is that enough to sell a
club, uh, you know, a vending machine?
You think like if, if you have a
paddle club, like in, in, like in
life, you cannot like do eight things.
Correct.
So give me the, the problem of the walls
to me, I'm, I do the things correct.
I you're earning money.
Maybe a little bit less than
what you do doing by yourself.
So you're saying have 'em focus
on, on uh, uh, renting the courts.
Renting the courts, and have
you guys focus on selling
some of the products, right?
See that employee, what are the hours
they have, not reservations, maybe
do a clinic, maybe other things.
Yeah, when the club focus on in
renting and programming and doing
events and things like that.
And that is the reason the
core business for the clubs
not, or any other accessories.
And how do you, so that
percentage, the 15, 20%, when
does the club receive it back?
Each month?
Each month you, you do, you send them a,
a statement and you get so much money.
The, the glove has have access to an
app is a transparent, they can, our
sales, they can't see any, any sales.
So it's the 20% of the our
sales, the vending machine.
Does it tell you when he's
running low on inventory?
Yeah.
Yeah.
So everything is digital.
Yeah.
So, you know, you open your phone and you,
we got an app, uh, in this club in Spain.
We sell 12 camps today.
Six bull trees, Lassinger to help.
Okay.
And so now you guys, uh, provide
all the maintenance, right?
You have to restock the machine.
So you guys have to have a
guy go out there and restock?
We have a guy, yeah, we
have a guy in, in Miami.
We have a guy in Spain.
We have a guy in
Netherlands, in Netherland.
We have another guy.
Wow.
Wow.
And we work, we work, sorry.
We work like another, uh,
like other bending company.
Yeah, yeah, yeah.
I got it.
If you have a Coca-Cola vending machine,
The, the VA don't refill the machine.
Right, right.
We work similarly.
And so you provide, let's say
I want to hire the service,
which I think is fantastic.
So now do you provide me, um, um,
a catalog saying, okay, we can
have this, this, and that, and
all different brands and all that?
Yeah.
Yeah.
And what are the brands that,
uh, you're looking to provide
here in the United States?
We are working with her.
We are working with Slinger Slinger.
We are the only.
Way to sell.
If you wanna buy a, if you
wanna buy Lozenger, only buy
our Lassinger Duer Wilson.
Okay.
And now, uh, how many V
machines do you have in total?
Uh, Europe of usa we start, we
started, uh, six months ago.
Six months ago, and we
have, uh, fours in Spain.
Fives in Netherland one in Miami.
We started yesterday.
We started yesterday on
the first Love in Miami.
Yeah.
That's amazing.
That is amazing.
How did you do that?
You guys have a good sales force.
I mean, is it just, uh, door to door?
I mean, uh, network of,
of people in the industry.
That's pretty good.
We have to, we have two main partners.
They are very famous.
They, they are very
famous on, on P players.
They are players that are
Turk partners of the company.
Paddle market is very, very little now.
So when you say partners in the
company, does that mean equity partners
or meaning just equity partners.
Equity.
Very smart of you guys.
Yeah, that's what's great.
Yeah.
Question you asked before.
Uh, we've been traveling, uh,
a lot these, these six months.
We do the tournaments to do relationships
with the players, with all the people,
like Albert said, the, the pattern
market right now, it's like this
because it's a, a growing sport.
I was gonna ask that, how big is this
market and, you know, is, is there
like a ceiling to this business?
Because I mean, there's only so many
clubs or is it growing that fast that you
feel like that ceiling can really reach?
We think in America, we don't
know right now where we can
get, because it's just starting.
In Europe, in Spain, right now,
it's the second most play sport.
Uh, After the football.
Yeah.
Yeah, yeah.
And, uh, and so where are all
your, your vending machines?
What, what's what, uh, countries,
uh, do you have the most
vending machine is right now?
Right now?
Spain.
Spain.
Spain the most.
Yeah.
And so, where do you guys wanna talk?
I know you're doing usa but uh, I know
that Italy is really growing Portugal.
Really?
We are.
But what are your areas now?
Right now we have plans to
open the next countries.
We're opening the mountain.
Okay.
Spain, Italy.
And you're in Mexico as well?
In Mexico, we are, yeah.
I, I'm in Mexico, so we
are opening Mexico also.
Yeah.
So I think it will be good for
our listeners and and viewers.
And in what club are you here right now?
In Miami?
Mm-hmm.
What's the name of it?
Yeah, Royal Paddle Paddle
is the first club in Miami.
Good.
And now is the first
club with Paddle Miami.
So I think it's very important if
you're looking for a gray, beautiful
bending machine to provide a paddle
equipment, go to check rail, paddle.
They paddle drop machines.
They're awesome.
I trust.
Trust me on that.
Yeah.
How ready.
Are you for the American market,
meaning it's such a huge, huge country
that you have to have the, the right
team, the right workforce, you know,
because I know you want to start small.
So your idea first start here in
Miami and then start growing slowly.
Yeah.
Uh, our first, uh, our first side
there in, in US is Miami because p is
is growing, uh, since there in, in us.
But we have also tennis drop.
And tennis is the one of the most, uh, the
main sport we can in sports in Florida.
So I was gonna ask you that.
And when you say the 40 machines,
is that just paddle or is that
any other type of, uh, sports?
All rocket sports.
All rocket sports.
In, in US Paddle.
Ethical pickleball is more, more
important than paddle Tennis is more
important than pickleball and paddle.
So we can do all the
sports in the same machine.
So out of the 40 uh, vending machines,
what percentage is paddle tennis
or miscellaneous other sports?
Now the majority is paddle.
90% I think.
Paddle?
Yeah.
Wow.
Yeah.
Wow.
Wow.
Yeah.
So we put, we, we, we can tell
the, the tennis machine or no?
Yeah, yeah.
We put, we put a tennis drop machine
on the Al Academy in, in Myorca.
Wow.
That's good.
That's awesome.
Yeah.
Yeah.
So are you guys focusing, gonna be
focusing now a little bit more on tennis?
Cuz it's a bigger, we figure out that
at the, at the middle of, of this, uh,
when, when we decide to came to, to
us, uh, uh, we figure out like entering
to the tennis, maybe it's more easier.
Because there is clubs, like right now
only tennis, but maybe in five years
tho those clubs will have paddle courts.
So we can enter with the tennis and
then here a paddle pickleball, right?
We can do whatever the, the, the thing
we, we, we are looking, it's to provide
a, a best service to the players.
So, For us, it's the same because the
brands are the similar for PAD and tennis.
Also in the same machine we're working,
you can have a paddle products for, uh,
for the public courts here in Florida.
They add more than I think.
300 public court.
So what's the process in that?
Do you have to go to, to
the town and ask them to?
Yeah.
With the major, like explaining it's a
good service to the people trying to,
maybe that's a low cost so they can play.
Maybe if you got a, a, a public
league where people will court, but
you don't have a racket and maybe we
have a machine, then you can rent.
For rockets and, and buy one bowl.
Yeah.
Maybe with $25 you can play
and enjoy all the afternoon.
Yeah.
So now do you guys see yourselves
getting into any other type of sports?
Because, uh, again, I mean this is, you
open up, you brought in the market there.
Right now, we think with
the racket sports we are.
Okay.
Focused on that.
Okay.
Yeah, because if you like
try to do transport, I, I
think you are not doing well.
The people are telling us with, with golf.
That's true.
But I think good idea.
We, we, we must, we focus
on the teases, the tease.
Everybody runs.
That's right.
I think all, all the golf, all the
golf courses on the golf glove,
they need to have the pro shop.
Yeah.
Like for the tea time for, so
if they got the pro shop, yeah.
They're not buying
balls on the machine or.
You know?
Right, right, right.
Okay.
So, um, let's talk about revenue, right?
Is, is it all coming from, uh, the
sales or is there any other verticals
there, like processing, you know,
right, right now, only the sales.
Do you guys have an API or do you
guys work with, you know, um, uh,
platforms that, uh, clubs, uh, use.
One of the problems in Spain is
when the people, eh, viables, kind
of vols, eh, only one person, eh,
pay for, for that and need to the
others, eh, make difficult to split.
Like you owe me two euros.
Two euro.
You have a Yeah, for sure.
Like normally one person pays.
We are not developing, uh, an
N API to connect with, with any
platform, any booking platform.
And when you are making the
reservation, you can have, uh, kind
of walls or any other accessory.
And making and put that
in the split payment.
QR in it, including on the reserve
and and on the reservation.
And you have a Q QR and go to
the vending machine and the
mini machine dropped the You.
Very smart.
Smart.
I love the idea.
Yeah, definitely.
Like in the apps, like when your
reserve occurred, you, you can
pay one or split the payment.
Exactly.
So they add the.
$2 is two euros.
Great idea.
Good.
Um, guys, I want to, uh,
congratulate you on the business.
It seems really great and yes.
You know, I look forward to
seeing more of these machines.
Thank you.
In, in, in the clubs.
Okay.
I love with everything love.
We love the love to be a lot
of machines here in Miami soon.
Let's do it.
If you are looking for the perfect bending
paddle machine for your club, These
are the guys, please reach out to them.
They will give you the best
vending paddle service ever.
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