Dan Doromal is a self-made entrepreneur and the founder of Everest Ice and Water Systems. Pulse 2.0 interviewed Doromal to learn more about his company.
Dan Doromal’s Background
Doromal comes from a background of entrepreneurs. And Doromal said:
“When I was younger, my father ran his own vending machine business. This meant I would often run routes with him, filling soda and snack machines, collecting payments, and so on. Later I ended up going to college and graduated with a degree in material science engineering. I then started my first company in the mid-2000s, which was focused on SMS marketing. Over the years, I’ve been involved with several other companies, which were all start-ups.”
“Then, in 2015, my business partner Ben and I started Everest Ice and Water. Originally, we were just a distributor or dealer for a manufacturer who built the equipment out in Pittsburgh. But in 2019, we ended up acquiring the manufacturer’s business. That led to our moving manufacturing down to Florida where we started designing and building our own machines, which took us to where we are now.”
Formation Of Everest Ice and Water Systems
How did the idea for Everest Ice and Water Systems come together? Doromal shared:
“The idea of ice vending is not a new one. But in general, what we’ve been able to do is play off the main problem in the ice business, which is distribution. Today, the ice business is much the same as it was in the 1800s, in which ice is manufactured off-site and then distributed to retail stores for sale. This setup can be extremely cost-prohibitive for the manufacturer, who must maintain a large production plan, a fleet of delivery vehicles, personnel, and equipment at the retail location where the ice is sold.”
“Ice vending machines eliminate almost all of those expenses since now you can produce the ice at the same location where you’re selling it. Ben and I had a chance to understand this business model when we worked for a manufacturer that sold soft-serve ice cream machines. Although there are still transportation issues for the raw materials to make the soft-serve, the actuarial product is made on site. That led to us starting Everest, initially as a dealer for a manufacturer that was looking to expand. In our first year, we sold more machines than the manufacturer had ever sold in a single year. That trend continued until we reached a point where it made sense for us to be the manufacturer of the equipment.”
Favorite Memory
What has been Doromal’s favorite memory working for the company so far? Doromal reflected:
“Winning the Inc 5000 award for the third year in a row was a great accomplishment for us. It wasn’t necessarily the award that was the significant memory, but rather all the small initiatives, conversations, and process improvements that took place over those three years that allowed us to grow. We are hoping that we can make it four years in a row.”
Economic Impact
Has the current macroeconomic climate affected your company? Doromal noted:
“The current economic climate has been one of the main drivers behind our continuous growth. Due to COVID, supply chain issues became a big problem, and as an offshoot of that, worker shortages, runaway inflation, and ballooning interest rates started to occur. As a result, traditional ice retailers started to feel more pain when it came to ice sales. Not only was the price of an ice bag rising, but it was becoming harder to consistently deliver that product due to supply chain and human capital issues.”
“At this point, the traditional ice retailers started to ask, ‘What other options do we have for ice?’ and they found Everest. Since our machines are fully self-service and produce the product on site, the labor required for operating them is basically zero. This allows the price point of the product to be very low when compared to the ever-increasing costs of bagged ice. So, yeah, I would absolutely say that the current economic climate has been a boon for our company.”
Core Products
What are Everest Ice and Water Systems’ core products and features? Doromal explained:
“Our core product is the Everest VX all-in-one ice and water vending machine. From the very start, we knew we wanted our machine to be as simple and easy to operate as possible. This is why every model includes our patented VersaVend one-moving-part ice dispensing system. Each machine also includes a five-stage filtration system, LED lighting, and a credit card reader. All of this comes within a powder-coated and strengthened steel frame that doesn’t corrode, making it one of the most secure machines on the market.”
Evolution Of Everest Ice and Water Systems’ Technology
How has the company’s technology evolved since launching? Doromal noted:
“Our company has always focused on the technology of our machines. In starting the company, the main focal point was to design a machine that is more dependable than any other ice vending machine on the market. We did that with our patented VersaVend technology.”
“In subsequent years, we focused on the quality of the ice and introduced UV sterilization and ozonated ice so that we could have the cleanest ice and water available. More recently we’ve focused on refining the communication technology so that operators can remotely check the status of their machines in real-time.”
Significant Milestones
What have been some of the company’s most significant milestones? Doromal cited:
“I would say we’ve had at least three significant milestones in our journey. The first being when Everest officially opened its doors in 2015, initially as a dealer, which made us one of the newest entrants into the ice vending market. Our second milestone was in 2019 when we acquired the manufacturer’s business and started to build our own machines. Lastly, 2022 was a major moment when we became the industry’s leading ice vending machine manufacturer.”
Customer Success Stories
After asking Doromal about customer success stories, he cited:
“Generally speaking, our most successful customers share a similar pattern of buying a few machines to start with, before purchasing additional machines to expand their operations. This shows how scalable this business model can be. Moreover, many of our customers have found great success in placing their machines in non-traditional locations, such as condominiums, marinas, and campgrounds.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Doromal assessed:
“If you check IBISWorld’s 2023 report on ice manufacturing in the U.S., you can see that the total revenue for ice manufacturers this year is about $1.1 billion. That’s the market we’re in. What separates us though from these other manufacturers is that our ice is made on-site rather than in a large production plant.”
Differentiation From The Competition
What differentiates the company from its competition? Doromal affirmed:
“Our main competitors are in two buckets. The first group is other ice vending manufacturers that produce ice on-site, and the main way we differentiate ourselves from them is with our patented VersaVend one-moving-part dispensing system. Fewer moving parts means a significantly lower chance of anything breaking down. This simplicity in our design has been one of our guiding principles from the very start of Everest and has played a big part in our continued growth.”
“Our other major competition comes from traditional ice manufacturing plants, which we differentiate ourselves from through all the ways we’ve talked about above. On-site product production, no supply chain issues or costs to worry about, and ease of entry for entrepreneurs who want to get into the ice manufacturing business.”
Future Company Goals
What are some of the company’s future company goals? Doromal concluded:
“There are about 50,000 grocery stores in the U.S., of which the majority source their ice from the traditional manufacturers. Our goal is to replace these ice merchandisers and manufacturers with our vending machines and make ice vending the first choice for customers looking to purchase ice. Additionally, we also plan to expand our business footprint by establishing new sales networks in other geographic locations and continents.”
