Emanuel Ruiz almost bought an Amazon pool-accessory business for $330k but the seller pulled out. The business made $10,000 a month when he found it, then dropped to $3,000 due to Amazon quality issues and bad reviews. He explains why he walked away and why betting on potential without real numbers is a mistake.
So a few months ago, back in April, I was gonna buy this pool accessory company on Amazon, and I even had a letter of intent around $330,000 for this business. We were gonna get ready to sign it, and then he pulled out last minute. Well, if you guys know about pool accessories, it's obviously a seasonal type of niche, and in April, that's when, you know, selling season for him was about to start. So he said that we are undervaluing his company because making around $10,000 per month in profit. And he says that he'll get back to us after selling season. So now fast forward to August, that $10,000 in profit per month quickly turned into $3,000 in profit per month, which again, this is based on the last 12 months. So he's drastically come down and his excuse was, hey, Amazon didn't check in my items in time. He had a little bit of a hiccup when it comes to quality control. And mind you, his listing went from like a 4.1 overall star to a 3.6, and he's getting like bad reviews daily. And not to mention that he only has one product, right? So if he had other products that were generating some revenue and some profit, I would have bypassed it and said, look, you know, maybe this one just had a hiccup. Next year we'll go ahead and fix it. But the fact that your only product has dropped that much in just a span of a couple of months, it's alarming. Not to mention there's a bunch of other like shady stuff going on with the actual seller, and I don't care. And I'll tell you exactly why I don't care about airing out this business. But, um, to put everything in perspective, right, you dropped that much in profit, and obviously he wasn't expecting the full asking of $300,000 anymore, but this business isn't worth that much anymore. And in fact, I wasn't willing to pay anything for this actual business because it's a declining business, has bad reviews. And his excuse was I've built this business off of Amazon. So I'm running a bunch of Facebook ads. I get sales on Shopify. I have a connection in retail stores, this and that. Talking about the potential of the actual business. And this is one thing, right? Like potential isn't worth nothing. You have to show me what you've actually done in business. So the advice I gave him is like, look, man, I have multiple brands on Amazon, all of which do at least $1 million in revenue. My big is doing $5 million in revenue per year. And I told him, stop focusing on everything, right? Just focus on Amazon and become an expert in Amazon. And he asked me, okay, thanks for the advice. Are you still interested in the business? And I said, hell no, I'm not interested in the business. So he told me— So you're telling me I had to sit through and hear this shitty advice, business advice, from you? Just for you to not be interested in my business? Like, come on, bro. I wasted my time going ahead and deep diving into your actual shitty business, and you know, no, I won't buy your business.
