Podcast Summary: "Porta-Potties"
The Economics of Everyday Things
Episode 78 | January 27, 2025

Hosted by Freakonomics Network & Zachary Crockett

Introduction: The Unseen Backbone of Public Events

In this episode of The Economics of Everyday Things, host Zachary Crockett delves into the often-overlooked world of portable toilets. Through engaging conversations with industry experts, Crockett uncovers the intricate operations, economic significance, and societal perceptions surrounding porta-potties.

Behind the Scenes: The Portable Sanitation Industry

Ron Inman, Vice President of Honeybucket—a leading portable toilet company operating in seven states—opens the discussion by highlighting the complexity of the business:

“It’s not a fireman, it’s not a doctor. But when you roll up your sleeves and get in the business and do it right, it’s complex.”
[02:01]

Honeybucket is part of a broader network of over 3,600 companies worldwide that provide portable sanitation solutions. These companies supply toilets for diverse settings, including construction sites, music festivals, marathons, and even extreme environments like mountaintops during the Winter Olympics or deep within gold mines.

Historical Context: Evolution of Portable Toilets

Portable toilets have been integral to American infrastructure since World War II, initially appearing in shipyards and on military airships. However, it wasn’t until the 1960s, with advancements in plastic manufacturing, that modern polyethylene porta-potties became widespread.

Veronica Crozier, Executive Director of the Portable Sanitation Association International (PSAI), shares a personal connection to this history:

“He started a small portable sanitation company in rural West Virginia in the mid-1960s. He very proudly ran that company for his whole life.”
[05:00]

Crozier emphasizes the familial legacy and the industry's growth from regional family-run businesses to national enterprises valued in the billions, such as United Site Services.

Economic Operations: Profitability and Business Models

The portable toilet business can be highly lucrative. A single unit costs between $500 and $1,000 and can be rented out for years. According to industry surveys, nearly half of all portable toilet operators enjoy profit margins exceeding 20%.

“A typical single unit getting rented for a week or so might start anywhere from $95 to $225 in that range.”
[07:08]

The revenue varies based on factors like transportation distance and anticipated usage. While there are luxury models with high-end features, the majority of rentals involve standard units designed for functionality and low visibility, especially in professional settings like construction sites.

Design and Branding: Standing Out in a Crowded Market

Veronica Crozier discusses the importance of design in appealing to various clients:

“There’s a lot of common colors, grays, forest greens, the tans. ... But at the same time, if you’re doing festivals, if you’re doing concerts, races, maybe you want something fun and splashy and you want that hot pink unit.”
[08:11]

Companies like Denver-based Throne Depot utilize bright colors to make their units noticeable, catering to events that thrive on vibrant aesthetics. Creative branding, such as names like "Doody Calls" and "Honey Bucket," also helps companies differentiate themselves in a competitive market.

Securing Contracts: From Permits to Major Events

Securing contracts is a pivotal aspect of the business. For instance, Honeybucket relies heavily on construction projects, which account for about 60% of their business, while events constitute roughly 15%. Major events like the New York City Marathon or the Winter Olympics represent significant opportunities:

“We had portable toilets several hundred feet up a slope that you couldn’t get a truck to. ... and we got it done.”
[11:08]

Landing a contract for an event like the Olympics involves meticulous planning, problem-solving, and substantial investment, as demonstrated by Honeybucket’s $3 million bid for the Winter Olympics.

Operational Challenges: Meeting Demand and Ensuring Cleanliness

Determining the number of toilets needed for an event involves careful calculations. A standard formula estimates accommodating about 50 people per toilet. However, factors like alcohol consumption can complicate these estimates, necessitating additional units to prevent overuse.

“If you have a three day festival that’s built around microbreweries... you’re going to need a lot more portable sanitation.”
[16:12]

Ron Inman recounts instances where miscalculations led to overuse and overflow, emphasizing the industry's need for flexibility and rapid response to prevent crises.

Maintenance and Waste Management: The Heart of the Service

The service side is crucial for maintaining hygiene and customer satisfaction. Companies like Honeybucket employ full-time cleaning crews known as service technicians who:

1. Clean and Sanitize: Use vacuum pumps and specialized techniques to empty waste tanks.
2. Replenish Supplies: Add scented blue chemical formulations to deodorize and maintain cleanliness.
3. Handle Emergencies: Rapidly respond to accidents or vandalism to restore service.

“There’s a lot of common colors... ...if you’re doing festivals, ... you want that hot pink unit.”
[08:11]

Innovations in waste management include systems that pump waste directly into holding tanks located up to 200 meters away, reducing reliance on trucks and enhancing efficiency for large-scale events.

Unusual Discoveries and Social Perceptions

Despite the industry's critical role, portable toilets often harbor unexpected items, leading to annual contests for the "weirdest objects" found. Common discoveries include cell phones and, more surprisingly, items like sex toys.

“I have heard anecdotally... my sister... rolled up her sleeve and went in.”
[22:38]

These anomalies underscore the private nature of portable toilets, likened to "Las Vegas" for their discreetness. However, societal discomfort around discussing bodily functions has historically made industry professionals reticent about their work—though veterans like Ron Inman are now more open and proud of their roles.

Conclusion: Appreciating the Essential Service

The episode concludes by highlighting the indispensable role of portable toilets in facilitating large gatherings and essential operations. Despite their humble appearance, porta-potties embody a blend of logistical expertise, economic viability, and societal necessity that keeps public events running smoothly.

“I have... hopefully folks say, oh, smells like pina colada in here.”
[24:38]

Through expertise and dedication, the portable sanitation industry ensures that even the most mundane aspects of public life are handled efficiently and hygienically.

Key Quotes

• Ron Inman: “We go to a bar, we don’t talk about work, we talk about something else because you don’t lead with that.”
  [23:31]

• Veronica Crozier: “We were founded in the early 1970s because there needed to be a place for operators to come together to have a united voice and improve the public perception of our industry.”
  [04:00]

• Zachary Crockett: “For the Economy of Everyday Things... today, Porta Potties.”
  [03:13]

Final Thoughts

The Economics of Everyday Things sheds light on the complexities and significance of the portable sanitation industry. By exploring the behind-the-scenes operations, economic strategies, and societal impacts, Zachary Crockett provides listeners with a newfound appreciation for the ubiquitous porta-potty.

For more episodes without ads and exclusive content, consider subscribing to SiriusXM Podcasts+ on Apple Podcasts at http://apple.co/SiriusXM.