Turning plastic into profit
Published in the Orlando Business Journal Aug. 19, 2011
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by Kerri Anne Renzulli
Tom and Bob Cannon are waging war on cardboard — and winning. Their weapon of choice: reusable interlocking plastic moving boxes.
As founders of BungoBox, a Casselberry-based company that rents the plastic boxes for commercial and residential moves, they are out to take back the market share cardboard enjoys. To accomplish that, they are offering a product that is both cheaper and sturdier than cardboard while being eco-friendly.
“We have to reprogram people and create the awareness that cardboard is not the only option,” Tom Cannon said. “In every facet we have cardboard beat. We want our product and our brand to be recognized as the new standard.”
Since the cousins began BungoBox in August 2009 with each chipping in more than $500,000 from their personal savings, the company’s revenue has increased 600 percent, from $25,000 in 2009 to $175,000 in 2010. They expect to earn more than $1 million this year.
“We have a 100 percent conversion rate. All our clients come back, not just satisfied but as raving fans,” Bob Cannon said.
Jeannette Casasnovas, executive assistant for Total Medical Solutions, said when her company moved its offices, BungoBox was selected because of two factors: affordability and eco-friendliness. But she wasn’t the only one pleased with the decision.
“I have employees who were a part of the move and saw how easy Bungobox was and now are calling them to help with their personal moves,” Casasnovas said.
The Cannons credit such success to the simplicity of their idea and the tenacity with which they’ve worked to realize it.
At startup, Tom and Bob Cannon were the sole employees and performed tasks ranging from box delivery to sales calls.
“I used to say I was pulling a Superman because I’d go directly from a business meeting and wearing a tie to running a delivery in shorts,” Bob Cannon said.
Tom Cannon added that it now has become a source of pride for him to see a BungoBox truck on the road — and not be the one driving it.
While their own staff has remained small, that’s not to say the Cannons don’t have growth on their minds, with franchise development.
The pair began offering others the chance to ride their idea’s coattails at the start of this year. By May, their first franchise opened in Tampa.
BungoBox opened another five franchises already this year, the most recent in Halifax, Canada, and plans to have 10 open by year-end. Another 20-30 locations in Canada are expected to open in the coming years.
Greg Steinig, owner of the Tampa-based franchise, said he couldn’t be happier with the business, as he has been profitable since opening.
“Other companies don’t have the business model that the Cannons do. They have a system that brings customers in,” Steinig said.
BungoBox aims to have at least 100 franchise locations in North America established in the next five years, but would like to become global.
To get there, the pair plan to follow two tenets they believe all businesses need.
“You have to be excited about what you’re doing, because that excitement is contagious and it spreads to customers, employees and franchisees,” Bob Cannon said.
And, added Tom Cannon, such excitement should be tempered with a determination to take risks. “Work 10 times harder than you ever thought you would and do what most people are unwilling to do.”
BungoBoxTop local executives: Tom and Bob Cannon, co-founders.
Description: Rents plastic boxes for commercial and residential moves.
2010 revenue: $175,000.
Employees: Eight.
Contact: (888) 479-1888; http://www.bungobox.com.
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