How much would you pay for a nap? For entrepreneur Nicholas Ronco, that’s a million-dollar question, with the fate of his 18-month-old business hanging on the answer.
Yelo is tucked away in a nondescript storefront on West 57th Street, a busy industrial stretch of Manhattan’s midtown. But step inside, and you can leave urban noise and pressures behind as you settle into a soundproof YeloCab, a cozy cabin engineered for maximum tranquility. Yelo’s business is selling naps - and right now, that business is booming.
Yelo opened in doors in February 2007. Since then, more than 4,000 nappers have stopped in, a clientele ranging from corporate executives to groups of twentysomething “disco nappers” that swing by on Saturday afternoons to rev up for a night on the town. Corporate clients such as Alvin Ailey Dance Theater, Hearst Corporation and BMI bring in steady, repeat business.
As he priced his naps, Ronco studied the cost of everyday commodities, such as a cab ride or lunch. A snooze at Yelo now costs $15 (20 minutes) to $28 (40 minutes). In its first year, the nap shop booked revenue of $400,000; for next year, Ronco projects sales of $1.3 million. Right now, revenue is growing by an average of 23% each month.
Image via CNN
cassy on August 31st, 2008 at 12:39 am
We cant really concentrate to work when we are luck of sleep.
Nice biz…he just dont get a profit here but also help other people too.