Cold Calling Owners

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Howdy, Investors!

Last week, I mentioned I was exploring the porta potty rental industry as a potential acquisition target.

So this week, I hit the phones. I called 20 porta potty companies.

Two owners talked to me. That’s a 10% hit rate — not bad in this game.

One of them had already sold and retired two years ago (turns out some of my info was outdated). The other wasn’t planning to sell anytime soon — unless I made him an offer “too good to refuse.” But both conversations were gold.

Here’s what I learned (but first, a short word from my sponsor):

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1. It’s a Race to the Bottom

Porta potties are a commodity. The only way to stand out is through service and cleanliness. But even then, it's a price-driven game.

One owner even outbid everyone at a competitor’s asset auction just so he could control where the potties ended up.

Savage.

2. Labor Is Brutal — and You Have to Do It Yourself

Both owners admitted: the only way to make real money in this business is to be in the business. One still works a full-time job and runs it on the side. The other? Owner-operated from day one.

Why? Because labor is a nightmare.

It’s hard, dirty work that burns people out fast. Margins are thin, so offering benefits or a 401(k) will sink you.

One owner made it work by hiring retirees — slower, but reliable and careful. But even that’s a short-term fix. Eventually, they age out.

In short: unless you're willing to roll up your sleeves and do the dirty work yourself, it’s tough to make the numbers pencil.

Now, that’s not to say it’s impossible. There was a third owner I couldn’t reach, but the receptionist said he’s super hands-off. When I looked deeper into the company, I saw an extensive management team. This company was on a whole different level than the others.

Still, from what I’ve seen so far, without extreme cost control, it’s hard to make this business work.

3. No Moat

There are no long-term contracts. Customers can switch providers at any time. And since porta potties can be hauled in from anywhere, geography doesn’t protect you. If a new company wants to undercut you, they can — and will.

So there’s no real moat. Just grit, efficiency, and service.

That said, the industry has its own internal logic that was fascinating to learn. There's a clear pecking order for how porta potties are deployed based on condition:

• Brand-new units go to weddings and high-end events

• Mid-tier go to local fairs and schools

• Worn but functional go to construction sites

• Beat-up and stained go to highway projects, where they go to die

Owners strategically rotate inventory to extract every ounce of value from each unit. It’s a game of asset optimization — which makes sense when your core product is, quite literally, a plastic box.

So What’s Next?

I’m still keeping the industry on my radar, but I’m also expanding my search. The ideal business has some kind of moat — recurring revenue, sticky customers, or a geographic advantage. Porta potties are interesting, but they’re also brutally competitive.

Onward.

—Dakota

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