Podcast Summary: Making It with Jon Davids

Episode 230 – This Little Box is a BIG Business
Guest: Ghassan Halazon, CEO of Emerge Commerce
Date: November 25, 2025

Overview

In this engaging, idea-packed episode, Jon Davids and Ghassan Halazon (Emerge Commerce) pull back the curtain on unconventional business opportunities, marketplace insights, and the unglamorous—but lucrative—realities of e-commerce. They swap stories, trade tactical advice, and explore market trends, with each bringing “treasures” from their entrepreneurial grab bags. The episode spans topics from “hotel in a box” concepts, the power of “Boomer Commerce,” pet industry innovations, cash flow hacks, channel arbitrage, and lessons from surviving and turning around an e-commerce giant.

Key Discussion Points and Insights

1. Micro-Hotels: “Hotel in a Box” Innovation

[00:54–05:59]

• Concept: Davids introduces a growing Brazilian phenomenon: compact, metal-box hotels installed at gas stations and rest stops, offering beds, bathrooms, and Wi-Fi for short stays.
  • “Let’s take a motel and just skim it down to its basic function … put a box at the side of the road people can go into, snap their credit card, get some shut-eye.” (Jon Davids, 01:21)
• Business Opportunity: Minimalist, scalable, and with potential for high margins and rapid geographic roll-out.
• Notable Insight: These units drastically lower the cost and friction of lodging compared to traditional motels or hotels.
• Societal Trend: Appeals to Gen Z/Gen Alpha values of efficiency and minimalism—“Why did we build these huge buildings just to sleep in?” (Davids, 05:39)

2. Boomer Commerce – Serving the Older, Loyal, Wealthy Customer

[06:45–15:21]

• Definition: Halazon shares the merits of targeting “Boomers”—older adults with greater disposable income and loyalty:
  • “There’s this world of Boomers that happen to be sitting on the most income and the most time and probably the most loyal types of customers.” (Ghassan Halazon, 06:49)
• Case Study: Emerge Commerce brands like Underpar.com (golf) and subscription meat services naturally skew older, leading to lower churn and higher LTV.
  • “They unsubscribe less, they complain less, they’re more loyal, ... less price sensitive.” (Halazon, 07:14)
• Strategic Implication: “It’s the less sexy stuff” often ignored by trend-chasers going after younger audiences.
  • Davids notes Facebook, often dismissed as uncool, remains a rich ground for affluent engagement: “Facebook ... has a ton of really wealthy, affluent people that are engaging every single day.” (Davids, 13:04)
• Secret Weapon:
  • Email: “Email is NOT dead. All caps. ... When we pick up a brand, we notice they barely email their subscribers.” (Halazon, 14:07)
  • Advice: Ramp up email frequency; let subscribers choose their own cadence but don’t be shy.

3. The Self-Serve Dog Wash: “Boring” Passive Income

[16:25–22:29]

• Innovation: Davids highlights coin-operated self-serve dog wash stations popular in Germany/Netherlands—a vending-machine approach for pet grooming.
  • “... self-serve dog washing stations—coin operated. ... If you own a convenience store … just put it next to the hotel in a box.” (Davids, 17:03)
• Business Model: Low overhead after initial investment (~$30K), fast payback if sited well, highly passive—but location and customer service are critical risks.
• Pet Industry: Americans spend $160B+ in the category, most of it in premium services, not just food or toys.
• Market Reality: “People love their pets and want them clean, that’s for sure.” (Halazon, 20:10)
• Advice: Lower-capex business models, especially for first-time entrepreneurs, are safer than plunging into high-stakes, high-capital real estate.

4. Supplier “Financing” and Cash Flow Tactics

[23:25–33:22]

• Lesson: You don’t always need to raise money if you can wring more cash flow from your operations.
  • “It’s this bigger idea ... there’s so much attention on profits ... but that doesn’t necessarily mean you have the cash flow you need.” (Halazon, 23:30)
• Tactic: Negotiate supplier terms to pay later (Net 60/90/120) while collecting revenue faster to finance your growth and relieve cash crunches.
• Negotiation Principle: “Everything is negotiable and everyone is replaceable, including myself.” (Halazon, 28:57)
• Case Example: Large companies push for six-month payment terms; smaller businesses can use similar leverage.
  • “If those guys are paying us late, you want to go pay early or pay on time? Are you out of your mind?” (Halazon, 27:02)
• Alternate Approach: For consumer subscriptions (“boxes”), offer a discounted annual upfront payment—draw cash forward while increasing retention.
• Classic Example: Costco’s 30-day inventory turnover means they’re often selling products before ever paying suppliers. “They are literally never paying a dollar out of pocket.” (Davids, 31:16)

5. Channel Arbitrage & New Acquisition Opportunities

[33:29–41:42]

• Arbitrage Concept: Find undervalued or underutilized marketing channels before they’re popular.
  • “Once in a blue moon, you get to see something that has the potential to be the next big thing.” (Halazon, 33:43)
• Recent Example: Applovin—public company with video ad inventory in mobile apps now available in Canada with high ROI due to advertiser scarcity.
  • “We’ve been seeing tremendous early results.” (Halazon, 35:53)
• Historic Analogs: Google Ads in 2003, Facebook Ads in 2009.
• Channel Diversification: Ideal to have Meta/Google as <50% of ad spend; supplement with emerging channels, podcasts, and especially email.
• On Ad Spend: Most budgets still go to Google & Meta because “their algorithms ... figured out how to get you to monetize it.” (Halazon, 40:34)

6. AI’s Disruption of Search, Ads, & Commerce

[42:15–44:52]

• Threat: ChatGPT/AI engines risk eating Google’s lunch, altering how consumers search and discover.
  • “All of the SEO world is at risk. ... Forums and blogs ... are really getting hurt. ... It’s so obvious that ChatGPT and others like it will be super plugged in, searchable. ... They have to monetize, and ... it’s going to be ads.” (Halazon, 42:15)
• Scale: The race is high-stakes, with AI companies needing $100B+ revenue to justify their massive investments.
  • “Something that started so novel now has to make money to cover the cost. ... It means there will be monetization, ... commercialization ASAP.” (Halazon, 43:54)

7. The Evolve-and-Survive Journey: Emerge Commerce’s Turnaround

[44:52–49:40]

• Company Background: Emerge Commerce went from startup to $120M GMV, survived the pandemic boom/bust, pivoted to focus on profitable, cash-generating verticals.
  • “We built an e-commerce brand portfolio … built up $120 million GMV business. ... We decided to refocus… on grocery and golf, AKA boomer commerce.” (Halazon, 45:14)
• Debt and Resilience: Managed to come back from $30M+ in debt through hard choices, disciplined cash flow, supplier negotiations, and brand discipline.
• Real Talk: “When you’re rock bottom ... it really was difficult ... asking yourself whether it was worthwhile ... But once we realized what we were sitting on ... now you had our fire back.” (Halazon, 47:30)
• Current Status: Debt down 80%, returning to double-digit growth and strong profitability.
  • “We're all showered up, now we're shaving and we've taken a nap in one of these Brazilian little kid boxes… the sun is back out … and we're ready for the next wave.” (Halazon, 49:13)

Memorable Quotes & Moments

• “Why did we build these huge buildings just to sleep in? We could sleep in this metal box. What are you talking about?”
  – Jon Davids [05:39]
• “Everything is negotiable and everyone is replaceable, including myself.”
  – Ghassan Halazon [28:57]
• “Email is NOT dead. All caps. ... One of the quickest, freest unlocks there is in all of e-commerce.”
  – Ghassan Halazon [14:07]
• “There’s only one Costco for a reason … Copied many times, never ever duplicated.”
  – Jon Davids [31:34]
• “When you’re rock bottom ... it was really difficult ... But once we realized what we were sitting on ... now you had our fire back.”
  – Ghassan Halazon [47:30]
• “We're all showered up, now we're shaving and we've taken a nap in one of these Brazilian little kid boxes… the sun is back out … and we're ready for the next wave.”
  – Ghassan Halazon [49:13]

Timestamps for Key Segments

• [00:54] – Micro-hotels: Hotel in a box innovation
• [06:45] – Boomer commerce: Targeting overlooked older demographics in e-commerce
• [16:25] – The self-serve dog wash: Cashflow in pet services
• [23:25] – Supplier payment terms and the art of cash flow
• [31:16] – The Costco payment model: Selling before paying
• [33:29] – Channel arbitrage: Early bets on underpriced digital advertising
• [42:15] – AI’s impact on search, SEO, and ad dollars
• [45:14] – Emerge Commerce’s turnaround and strategic focus

Flow and Tone

This episode is conversational, idea-rich, and candid—reflecting two seasoned entrepreneurs riffing, analyzing, and pulling back the curtain on what actually moves the needle in business. Both speakers value substance over flash, with a strong emphasis on strategic thinking, resilience, and the willingness to embrace boring, overlooked opportunities that compound over time.

Perfect for builders, marketers, and anyone fascinated by what survives—and thrives—in business beyond the latest fads.