My career started in investment banking,
now I'm running a box delivery business.
It doesn't sound like a lot, but on a
baseline it's 12 cents per package,
but we're talking millions and millions
and millions of packages.
>> We are currently doing about 90k a week.
>> So it's from zero to 10 million, what
was the biggest hurdles to go that fast?
>> Stories I could tell you.
>> Welcome back to another episode of the
M19 podcast. We're over here at Big
Cedar Lodge getting ready to go play
Payne's Valley home of the internet
invitational and we're really excited,
but before we go do that, I've got an
amazing guest member today, Chris
Basmajian. This dude has an eight-figure
logistics company. They call it last
mile logistics for Amazon,
delivering boxes out in in New York and
all these other places and we're going
to learn about this industry because
it's pretty lucrative from what I hear.
What's up, man? Bro, how do you get into
delivering boxes?
>> If you would have told me I was
delivering boxes 10 years ago,
I would have been like you're out of
your mind.
>> You're like, dude, what has my life
become?
>> My My career started in investment
banking, now I'm running a box delivery
business.
>> Yeah.
>> Absolutely insane.
>> Yeah.
>> Um, I actually started The reason I got
into it is I worked at a DoorDash on the
corporate side when they built out New
York City market. And I just got very
familiar with last mile logistics
through that. It's one of the hardest
markets in the world to do last mile in.
>> What What does last mile mean for those
who don't know?
>> Last mile is once the packages are
sorted at the fulfillment center to the
end customer.
>> So you
>> hardest part of that supply chain.
>> Yeah, so you're you're the guy who's
Amazon's already got the boxes, somebody
puts an order, it's already at the
warehouse, you take it from warehouse to
their home.
>> To end customer, yep.
>> Yeah, okay, got it.
So how how how you get in this business?
>> Through networking, somebody that I
knew, they have a referral program
actually and I had the experience with
StoreDash and you had to go through like
this painstaking interview process, 3
years just to get a contract with
Amazon.
>> Wow.
>> And um
I mean
like I said, if if you would have told
me 10 years ago I was doing this, I
would have told you you're absolutely
out of your mind. But what I found is a
lot of what I learned on the corporate
side of DoorDash translated directly
into Amazon.
>> Got it.
>> So
>> So you were a corporate employee at
DoorDash.
>> Yep.
>> And you go start your own business
within Amazon. Like how does that work?
Like do you own the business or do you
technically work for Amazon? Like what's
it look like?
>> So we're our own individual entity. We
have a contract with Amazon that renews
on a 1 to 3-year basis every year. So we
are our own last-mile delivery delivery
logistics company. Um we could do work
outside, which we do do some contract
work outside of that with like
FreshDirect and whatnot. But yeah, no,
we own the business and we just
basically have a contract with Amazon to
fulfill all their last-mile delivery.
>> In New York City? And you guys are doing
over like a million dollars a month.
Like how do you make money doing it? How
do they pay you?
>> Um so there's a lot of performance-based
incentives. So the hardest part in
last-mile delivery is getting the
delivery correct. Making sure that
packages aren't stolen, making sure
they're going to the right door. I mean,
when you're in New York City, we're
dealing with Mount Sinai Hospital, we're
dealing with Columbia University, we're
dealing with these massive building
complexes. It's not as simple as
dropping off a package. Sometimes you're
dealing with doormen and things like
that. So we're heavily incentivized for
quality and safety metrics. So we get
paid on a per package basis.
>> Per package you get paid. Like on
average, just for people to know, like
what do you typically get paid per
package?
>> It doesn't sound like a lot. But on a
baseline, it's 12 cents per package. And
and and and performance incentives, it
goes up to an extra 25 to 30 cents per
package. But we're talking millions and
millions and millions of packages.
>> Yeah, how many packages do you deliver a
year, you think?
>> Uh we are currently doing about 90k a
week.
>> 90,000 packages a week. So that's let's
just call it 400,000 a month, you know,
12 months. So it's like 5 million
packages almost.
>> Yeah. it's absolutely insane.
>> That's crazy.
So, what
what what do you guys do like,
you know, hiring these drivers? Walk me
through how the business works.
>> So, not only do we have So, we're
probably about 200 employees right now
between drivers. And we have actually in
Manhattan because it's so difficult, we
have what's called walkers. They're
basically foot messengers that meet up
at the trucks.
Um we have a whole logistics team in the
background, our admin team, dispatchers
at the desk, general manager, field
manager out in the field running around.
Um
it's I mean, the operation 7 days a week
from a.m. till about to
p.m.
>> Yeah. On a on a good day. Yeah.
>> Um just
making sure that those packages are
delivered, making sure that we're
maintaining safety standards. I think
the biggest thing in that industry is
safety. Commercial insurance is
incredibly difficult to get in New York
City. There's very few underwriters that
are willing to even get in that market.
>> Wow.
>> So, we do stand-ups every single morning
with the drivers making sure that their
26-ft box trucks going in and out of
Manhattan.
>> Right.
>> Small little streets.
>> Right.
>> So, we're making sure that we're
following all DOT safety regulations,
making sure that anchor points are safe,
making sure that we are routing the
routing the packages properly in terms
of where they're supposed to be. So,
finding different anchor points, make
sure everything's running efficiently.
It's just this this constant machine
that's running 24/7.
>> staff do you guys have?
>> Uh staff on the back end, we're probably
like 20 to 25 just managing the
operation on a daily basis.
>> What about the drivers?
>> Drivers, there's probably about 20 to 25
on the road, same same number as the
admin team. And then the actual foot
messengers delivering when they're out
in Manhattan, there's about 100 to 110 a
day actually executing the routes.
>> Wait, wait, wait. What's the difference
between a foot messenger and a driver?
>> So, the drivers are basically the ones
responsible at the fulfillment center
loading the packages, bringing them in,
getting to the anchor points, and
finding sufficient parking. The walkers,
the basically foot courier foot Excuse
me, foot courier
um delivery associates are just meeting
up at the different anchor points
throughout
>> Cuz cuz all you guys have are apartments
and stuff like that.
>> Yeah.
>> That makes sense cuz I'm like, wait,
that what Why would Why are they two
different people? Cuz in Las Vegas, the
driver
goes to my house, walks out, does it,
gets back in his car, and drives away.
>> Yeah. Doing that in Manhattan with vans
is a nightmare. I don't even think I
would be able to get insurance for that.
>> So, they just go to an ank You call them
anchor points. They drop off a bunch of
packages for all these foot soldiers.
>> And those go and execute the routes.
>> Dude, that's crazy.
>> Yeah.
>> That's logistically crazy.
>> Yeah. We've worked with the New York DOT
pretty closely.
Um they've set up what they call uh
these micro fulfillment centers, which
is basically just a dedicated parking
spot
>> Yeah.
>> on these different avenues to to allow
to park the the trucks. And we're
basically operating a micro hub right
there on the street.
>> Got it. So,
I was just thinking about it too, the
math in my head. So, I mean, like if you
guys are only making 12 cents a package
plus bonuses,
like how does that equate to eight
figures a year like at that It's just Do
you only get paid on the packages?
>> So, there's different There's So,
there's route-specific payments that we
get paid as well. So, we get paid based
off of packages, and then we get paid on
routes specifically. So, there's block
payments, and this is generally how it
works in the logistics industry. Okay.
It'll be like a hybrid payment of you'll
get paid per package, plus and then
you'll get paid for the route because,
you know, obviously you have staff
that's on that specific route, so you
get block payments to cover a lot of
that stuff.
>> So, does the block payment kind of just
cover all your overhead, and then the
package is profit?
>> For the most part, yeah. For the most
part, it In In logistics business, it's
how efficient you can be with the hours
that you have. If you're running You can
deliver more packages, you make more
money. Yeah. The more that you can get
on top of that, the more efficient you
are, the higher profit margins are. If
you're taking the whole day, obviously
that's that's not what you want, but um
what what what's nice about the micro
fulfillment program that we do with the
walkers out in Manhattan is you don't
have to worry about drive time, parking,
getting out and going. They're just foot
soldiers, like he said, out there on the
street getting it done, so it's highly
efficient compared to traditional
delivery methods.
>> Do Do any of these guys like ride bikes
and stuff, or they're all like truly
foot?
>> Not for us. Um they do have a bike
program. It is all same-day delivery,
though, which is a whole 'nother beast.
That's like you're ordering at in
the morning, and the package shows up at
p.m. That is a whole 'nother
logistical situation.
>> Dude, when I think about that, I'm like,
okay, so that's your business part of
Amazon. I'm like, dude, Amazon's
business is so complicated.
Unbelievable. It is unbelievable. Like
it's just fat As a As a business owners,
like you can have just appreciate like,
dude, these guys are
Like I can I don't even know where to
begin with all the different aspects of
what they do. It's nuts.
>> I know. And I talk to a lot of the guys
that sell on the marketplace. We're
handling their packages all the time, so
there's all these different layers that
work in
>> They got Amazon FBA, they got their own
products, they got,
you know, anyone that would just wants
to sell on there, then they they got
AWS, and then they're building
warehouses, they're buying real estate,
they're they're hiring companies like
you.
>> Not only that is they just opened their
network up to any
uh basically e-commerce business. You
don't even have to be selling on the
platform. If you just wanted to use the
logistics network, you can plug right
into it now and get stuff delivered.
>> That's kind of like how AWS started.
>> Yeah.
>> Yeah.
>> the same exact trajectory.
>> Yeah. Like they built their own thing
cuz they needed it for themselves and
everyone else is like, "Dude, we'd like
to kind of plug into this."
>> Yeah. Yeah.
>> You guys are the best.
>> You got the best logistics network in
the world. Plug in.
>> Yeah.
That's crazy. What makes you So, we have
another member I was telling you about.
His name is Randy. He's got um basically
FedEx He does logistics for FedEx. And
so, they do really well. Multiple eight
figures. And um
he was telling me about the business.
Very similar, but within FedEx. What
made you want to do it with Amazon
versus maybe FedEx or UPS or whatever?
>> I think the level of support that I've
seen so far. Like they truly operate
with you as a partner.
>> Yeah.
>> I I've heard of the other programs as
well, but um I think that the support
that they give you We've only been doing
this for 3 years and we're already
stabilized.
>> That's crazy.
>> You get that large that quickly.
>> Wow. So, what's your goal?
>> To continue to grow the business. I
mean, there's other areas to get into.
We've already put bids out for different
areas of business within their logistics
network. Um like I said, we've gotten to
the point this point already within 3
years.
Uh I think we want to stabilize,
continue growing the business, grow
regionally outside of just Manhattan.
>> Yeah.
>> Um and just continue to to just grow the
business into a larger larger beast.
>> Wow. So, how did you go from zero to
you know, how much revenue did you guys
do
uh the last 12 months, would you guess?
>> Uh we're very close to breaking to
10 million.
>> Yeah. So, it's from zero to 10 million,
what was the biggest hurdles to go that
fast?
>> Oh, man.
Stories I could tell you.
Uh
um
um it's just like it's it's and I talk
to a lot of people that run businesses.
It's just like that
the the scaling part and keeping your
systems in place and having those
systems and making sure that they
operate efficiently and they don't break
under the pressure. Like when we first
started um we had just had like a very
small modest like two three trucks in a
little small area of Manhattan grow out.
Basically, show us that you can do it
and we'll grow you.
And um you know, once we showed them
that we could do it it was like, all
right, let's pour the gas on the fire.
Let's do this thing and I was managing
everything at the time. I actually my my
father is my business partner. He works
with me.
And me and him were just doing it every
day. We're working 14 15 16 hours a day
seven days a week and as they started
pouring the volume on us like I can't do
this.
I have a family. Like I have kids, my
wife at home and we just started just
hiring really really great people and
starting to just like hand off these
responsibilities and let them go. This
way I could focus on the things that
mattered the most.
>> Right.
>> I was building schedules. I was
coordinating with everybody. I was going
out into the field, coming back, doing
the doing the opening the closing this
and that. And once I took the
opportunity to like just like
You spend money to make money, right?
>> Right.
>> Spend that money, put those people out
there and let them do that and free up
my time. We were able to scale it way
better. Better vision than just being
stuck in that day-to-day every day.
>> Did you ever deliver packages yourself?
>> Oh, we do it all the time.
>> There we go.
>> it all the time. We once a month we go
out. Um we have really good
relationships with with our drivers.
They love making fun of us. And I'll
just show up. Full uniform. Like, all
right, give me my route. Let's
let's go do it. And they make sure that
I get the hardest route.
>> you do it?
>> Cuz I got to know what they're doing.
You know what I mean? Like I can't sit
there and tell them what to do. I can't
make these rules these safety
guidelines. Like I have to know what my
blind spots are.
>> Yeah.
>> And they are very clear when I go to do
those routes. I can see what's broken,
what's working, all that good stuff.
>> I do a similar thing, you know, I go to
these M19 trips to make sure they're
good time.
>> I wish that was my
my week.
>> So, speaking of that, uh you know, we're
here at Big Cedar Lodge getting ready to
go play Payne's Valley and Ozarks and
everything. It's a lot of fun, but
uh, tell me what what made you want to
get into M19?
>> I've been absolutely obsessed with the
golf since I stopped playing baseball. I
was a pitcher. Injuries. I was like, you
know, I can't do this anymore. My body's
not ready for it and I needed something
to fill that void in my life and I just
started playing golf, golf, golf, golf
and
>> college or
>> Right after college. I was like, I need
I need to go do something. And uh, you
know, I started in the local muni
courses getting better this and that and
then focused on my business for a really
long time and then we got it to the
point where I'm like, okay, I have some
more free time on my hands. Recently
joined uh, a club local to me and that
just totally changed my game. Like the
the focus on it. And then I just started
seeing the ads, man. I mean, you guys
market very well and I was like, this is
exactly what I'm looking for. This is I
feel like I'm 32 years old. I'm running
this business. I have this free time on
my hands to play golf. I go to my local
club. You know, I'll I'll go on on like
a Tuesday or Thursday whatever. I'm
getting paired up with the guys who are
retired.
>> I know. Everyone's retired and
especially an expensive club.
>> You know, and this this is my first trip
and I sat down and had breakfast with
everybody and I already had
conversations that are 10 times more
valuable than anything I've ever had in
that club. Just sitting having
breakfast. I haven't played golf yet.
>> Yeah, I I've actually heard that from a
lot of I mean, we're over 400 members
now and you know, it's uh, I don't want
to say youthful, right? Because you
know, if you just think just in general,
somebody who's really wealthy, well-off,
who has the time to go play golf is
usually retired. Of course. You know,
and so especially if you're at a local
course that's expensive and you know,
big initiation. Like young guys just
usually can't afford even if they're
like
hustling and making money and doing well
for themselves, like it's still like a
tough thing for a lot of younger guys
and so
whenever we get guys here like, dude,
everyone here is like younger, hustling,
30s, 40s." You know, we got I don't even
want to call them older guys, but you
know, we have people 50s, 60s that are,
you know, they're still active like
hustling and and having fun and making
money.
>> And they appreciate the younger guys.
>> Yeah. They were like, "This is great.
Everybody's trying to make moves.
Everybody's growing. Everybody's
hustling." Like everybody has that same
mentality. Like everybody's working on
something, which is exactly where I want
to be.
>> Yeah. That's literally why I started it
cuz, you know, I joined my first country
club, you know, 5 years ago. And I would
go and play and I'm like, "Man, you
know, I don't really kind of relate to
these guys. Like they don't they just do
this every day. And like they're done.
It's cool, but it's kind of boring.
Yeah, I I can't play every day and do
nothing. Like I I enjoy
working every day. Um I enjoy also
making the time to come out and do this
and go play for 4 days and enjoy life.
But like, dude, I I I can't play every
day.
>> Yeah, I know.
>> Yeah. How are How are the courses out
there on the East Coast?
>> They're beautiful. They're beautiful.
They're They're a lot different than
this, I'll tell you that much. You got
the same scenery that I got here, but
yeah, I mean, anything in New York, Long
Island. Um I'm in I'm over in New
Jersey, and we're lucky enough where I
am in Monmouth County, they have some of
the best courses in New Jersey just
within the county course limits.
>> Yeah.
Yeah. So, we were talking about this
beforehand, but um we have a little
connection. So, you said you're from New
Jersey and you went to Montclair.
>> Yep.
>> And uh
I was like, yeah, you know, I played in
Sussex County, New Jersey their first
season, Sussex County Miners back in
2015. You're like, that's where we
played, too.
>> Yep.
>> And you were you would have been in
college when I was there playing
professionally.
>> We definitely passed each other. Yeah,
100%. And actually, what's funny is the
manager of the Sussex County Miners
right now, Bobby Jones, was my pitching
coach.
>> Oh, wow.
>> Wow.
>> Yeah, so.
>> That's crazy. So, what's it been like
getting out of baseball? Like obviously,
for me, it's been so cool having golf as
like this second life and and still
being able to be competitive, work
towards something.
>> Yes.
That all that explains it 100%. It's
almost like this identity crisis that
you have when you get out of it cuz it's
all you knew.
Every summer, like all my best friends
or everybody played travel baseball with
her down Florida, Georgia, this, that,
whatever.
And then like the one day either, you
know, you decide that this is the end of
the road or you hang your spikes up.
It's like, what do I do now?
>> Yeah.
>> What do I do now? And golf was kind of
like that saving grace for me. I was
like, I need something. I'm I'm
competitive. I get obsessed over certain
things and what better than to just sit
there at a range and go practice your
swing.
>> Yeah.
>> You know, I was a pitcher, so I was
sitting there throwing bullpens, focused
on
>> have been playing anyway. That pitchers
now.
>> I know.
>> They just They're like, yeah, well, I
only play a couple times a week, so I'm
good if I'm a reliever.
>> I should have, but yeah. At the time,
golf wasn't as cool. Golf got cool in
2019.
>> I know. That's when I I got into into or
2021. But uh well, what do you think of
the MLB now, dude? I look at I I watch,
you know, I retired in 2017 and so I got
to face some of these guys who are still
in the league today.
And I I look at today, I'm like, golly,
dude. Everyone throws 100. This is nuts.
>> Well, I remember
I remember where were we playing? We
were playing at the USA National Complex
and I was class of 2012. This is back in
high school.
And we're playing the number one team in
Florida.
And
um
it's about the eighth or ninth inning
and the shortstop comes out and goes out
into the bullpen.
And he comes in and we're like
16, 17 years old at this time.
>> Yeah.
>> And he's throwing 95, 96. I'm like, who
is this kid?
>> Yeah.
>> Lance McCullers Jr.
>> Okay, yeah.
>> And I remember I remember looking
the Yankees were playing the Astros and
I was like, I wonder I was talking to my
dad. I was like, I wonder what happened
to Lance McCullers. Remember we used to
play with him?
>> Lo and behold, he comes out of the
bullpen starts throwing. Jeez. I was
like, "I remember this kid. He was a
shortstop. He was a stud. He was just
throwing super hard." And yeah, no, it's
just that the velocity game now. Dude,
they all throw 100. 95's weak. You watch
the all-star You watch the all-star
game, Cody Bellinger's winning the MVP
for the what? Two RBI single cuz nobody
can hit. Like, it's crazy. I fell asleep
in the eighth inning. I'm like, "I can
only watch guys get Yeah.
You know?" But then you got guys like
Shohei who's just like I'm like, "I
don't get how this guy exist."
>> He's like he's AI.
And I would like I wanted to be a
two-way player for a long time. I I
could I could hit as well. I played
third base every once in a while, but I
really focused on pitching and I was
always told two-way, no way. Nobody does
it. And then he comes onto the scene and
opens up the possibilities for people.
>> Yeah, and he ain't just a two-way guy.
He's a Cy Young candidate and the MVP.
He's everything. He does it all at like
A+ level. Cuz you've seen guys like,
"Yeah, he could probably maybe like fill
in."
>> Yeah, of course. No, no.
>> No, he's like, "I'm the guy."
>> Number one on both sides on any team he
could possibly play for.
>> I'm like, "How does this How does he
exist?" Like, I don't get how he exists.
It's crazy.
>> It's something. If you're a baseball fan
you're going to get to see that live,
appreciate it cuz you'll probably never
see it
>> No, it's not going to happen again. No,
it will it it happened 100 years ago
with Babe Ruth and he couldn't even do
it very long cuz he's eating too many
hot dogs and
>> And not to the level that Shohei was
doing it. That was a different game back
then.
>> Yeah, yeah. This dude's throwing 100,
hitting 100.
He don't give a crap. Stealing 50 bags.
>> Oh god.
>> And and doing it just so calmly.
>> Yeah.
>> Like so calmly.
>> Yeah, it's crazy.
So, dude, as we wrap up here, um you
know, if anyone was on the fence about
joining M19, what would you say?
>> Do it.
Do it. I was on the fence. Um I you
know, I had a conversation and I went
through the interview process. I'm like,
"Yeah, I don't know.
Like I've I've heard of things." It It
almost seems too good to be true.
Like it seems too good. I'm like and you
know, business owner skeptical nature.
Everybody's always wants your money or
this or that whatever and I'm like,
yeah, I don't know, but something in me
tells me that this is legit. And you
guys actually ended up doing a webinar.
Some of the members come on and I sat
there and I watched it and then I
immediately just went, okay, I'm in.
Sign sign me up. This is legit. I can
tell. Like you guys are so authentic and
everybody's trying to work and do
things. Like if you're on the fence,
just just go do it. Yeah, it's so worth
it.
>> I love it. Well, bro, I don't know how
people can really work with you in the
logistics space, but you said you got
some consulting stuff you guys do, too.
>> Yeah, we do go to market for emerging
tech companies.
So I've worked with my my background
originally is in investment banking
space, mergers and acquisitions and
stuff like that.
>> Yeah.
>> I worked with a company that actually
was doing they were building basically a
marketplace for buy and sell businesses.
And I was like, oh, that's my world.
Sales, M&A, investment banking together.
And it went really well and then I just
started opening my services up I you
know, I kind of got a name in the M&A
space and you know, we're off to the
races.
>> There we go. So where can people find
that if they want to work with you
there?
>> gatewaytechnologypartners.com
>> gatewaytechnologypartners.com What's the
logistics company called?
>> dashwavedelivery.com
>> Got it.
>> It is uh
>> Would anyone No one would like ever hire
you there, right? Like it's just
>> I mean if you're looking to have your
packages delivered in an efficient and
timely manner, I'm your guy.
We operate a big fleet in in the
tri-state area. So if you're going that
direction, I'm your guy.
>> Yeah, there we go. Well, guys, if you
enjoyed this episode, you know, you want
to connect, we'll link to Chris'
information down below. Especially if
you're in M&A and
you know, you're looking to go to market
especially in the tech space, he can
help you out. But other than that, you
know, make sure you subscribe to this
podcast because every week we are
interviewing new members and they're all
doing so many things. I mean, I've
already had the guy who makes hats, the
logistics guy, the real estate guy, and
you know, it's just such a wide variety
of people doing high-level things here
at M19. And so,
uh make sure you subscribe if you want
to see what they're doing. We'll catch
you on the next one. Peace.