Kona Ice: Tony Lamb | How I Built This with Guy Raz

Intro

In this episode of “How I Built This with Guy Raz,” Tony Lamb, the founder of Kona Ice, shares his journey from being a door-to-door vacuum salesman to building a franchise empire of shaved ice trucks. With over 1500 trucks across North America, Kona Ice generates over $400 million in annual revenue. Tony’s love for what he was doing and his responsibilities to his family pushed him to keep going, despite doubts about scaling the business.

Main Takeaways

From Vacuum Salesman to Shaved Ice Entrepreneur

• Tony Lamb went from a door-to-door vacuum salesman to founding Kona Ice, a franchise empire of shaved ice trucks that now number more than 1500 across North America.
• Kona Ice generates over $400 million in annual revenue and has become a huge business.
• The brand started in Kentucky, the home of Hawaiian-shaped ice, and now has trucks across the US, Canada, and Mexico.

Lessons from Tony’s Entrepreneurial Journey

• Tony Lam grew up watching and learning about entrepreneurship and sales from his dad, who sold vacuum cleaners for a brand called Rainbow.
• Tony believes that ego is checked at the door when you’re in sales and that he has no inhibitions.
• Tony would use his charm and humor to disarm potential customers and find common ground with them.
• Sales can teach people how to move past rejection and find out why a customer is saying no.

Building the Kona Ice Brand

• Tony’s business idea for Kona Ice was inspired by watching someone make a profit from selling shaved ice.
• Tony wanted to create a truck that looked like Disney World and was impossible to say no to.
• The truck had a self-service part, called Flavor Wave, where customers could add as much syrup as they wanted.
• Kona Ice decided to franchise instead of licensing or selling the trucks to control the brand and maintain its integrity.

Kona Ice’s Success and Impact

• Kona Ice has high margins due to low overhead costs.
• Kona Ice helps first-time business owners with setting up their finances and forming their entity.
• Kona Ice’s founder, Tony, had a partner named Ed who provided financial backing during the financial crisis.
• Kona Ice uses its trucks as moving billboards, with over 1,800 trucks driving around and attracting lines of kids and adults alike.
• School events are a huge part of Kona Ice’s business, and franchisees can donate a portion of the profits back to the community while still making money.

Summary

From Vacuum Salesman to Shaved Ice Entrepreneur

Tony Lamb’s journey from being a door-to-door vacuum salesman to founding Kona Ice is an inspiring story of entrepreneurial success. Starting with just one truck, Kona Ice has grown into a franchise empire with over 1500 trucks across North America. Tony’s love for what he was doing and his responsibilities to his family pushed him to keep going, despite doubts about scaling the business. Today, Kona Ice generates over $400 million in annual revenue and has become a household name in the shaved ice industry.

Lessons from Tony’s Entrepreneurial Journey

Tony’s upbringing and experiences in sales shaped his entrepreneurial mindset. Learning from his father, who was a successful vacuum cleaner salesman, Tony understood the importance of building rapport with customers and using charm and humor to disarm potential objections. He also recognized that sales is a numbers game and that rejection is not personal. These lessons helped him build a successful sales team and multi-million dollar business selling vacuum cleaners door-to-door in his early 20s.

Building the Kona Ice Brand

The idea for Kona Ice came from Tony’s observation of someone making a profit from selling shaved ice. He saw an opportunity to create a better experience for customers by designing a tropical-themed truck and offering a self-service option called Flavor Wave. Tony’s vision was to transport customers to a tropical island and create an irresistible experience. To maintain control and integrity of the brand, Kona Ice decided to franchise instead of licensing or selling the trucks.

Kona Ice’s Success and Impact

Kona Ice’s success can be attributed to its high margins, low overhead costs, and unique marketing strategy of using trucks as moving billboards. The company also focuses on giving back to the community, with franchisees having the option to donate a portion of their profits to local schools and organizations. Kona Ice’s impact goes beyond just selling shaved ice; it creates memorable experiences for customers and supports the communities it serves.

Conclusion

Tony Lamb’s journey from vacuum salesman to founder of Kona Ice showcases the power of passion, perseverance, and innovation. By creating a unique brand and focusing on customer experience, Kona Ice has become a major player in the shaved ice industry, generating over $400 million in annual revenue. With its franchise model and commitment to community impact, Kona Ice continues to grow and make a positive difference in the lives of its customers and franchisees.