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  1. #1
    DF VIP Member Kushty's Avatar
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    Help I've launched my startup, I need DF's help!

    I've just launched my startup, NearCollect (partially thanks to DF!) and I need your help!

    I have a trial store and I need to drum up business. Do any of you know someone who lives in Old Street or have suggestions for how to get customers? I've already done some flyering but not had much luck.

    Any feedback on the site and idea is welcome as well (or why you think I'm not getting customers).

    http://nearcollect.com

    Thanks!

  2. #2
    VIP Member CzarJunkie's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    How many stores have you got in the network, just the one?

    I think you may be a little late to the game for 'Click & Collect'. A lot of high street retailers already offer it and it's been particularly popular this year. For 'pureplay' internet retailers, Royal Mail have also launched their own 'Click and Collect' service called Local Collect. Amazon, the biggest retailer, has started with Royal Mail's scheme along with having their own lockers at Railway stations etc.

    In order to be successful you will need to spend a lot on marketing and recruiting convenience stores in order to have a network big enough to go to market. Also, how are you going to monetize it? I see it is free while in beta, but what's the business model? Most retailers, who do offer it, offer the service for free. So, how will that impact on your plans? Can you offer it for free and monetize it in another way?

    Maybe a better way to go would be to forget the consumer route, get the network up to a size that will serve, say a city to start, and then offer it direct to retailers at a cost, like Royal Mail are doing.

  3. #3
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Thanks for the feedback. I've looked at the market and it is growing rapidly. 1 billion parcels will be delivered this year but online sales only make up 20% of retail sales. This is obviously set to grow. I think there is still room for us in this rapidly growing market.

    The key difference in our business model is that we don't need to provide bespoke hardware to stores to use our service, unlike incumbents. This puts our fixed cost per store at virtually zero. Collect+ want one store per half mile and no more, because their fixed cost will double for another store. However NearCollect would happily take 2,10,20 stores in the area and if we sold no bookings it wouldn't matter! Long term I'd like to have a big network and integrate with retailers, but right now, our business model should allow us to grow virally. Collect+ can't do that because they have to physically deliver and setup bespoke hardware.

    We don't actually compete directly with collect+ and the like because we can accept parcels from anyone (subject to t&cs, i.e. no bombs). So, in that instance, the customer doesn't have the 'free' Collect+ choice. Collect+, amazon etc. are not always free btw, collect+ can be up to £5 and amazon is £1.99 without prime.

    The biggest mistake of startups (according to Steve Blank) is scaling early. I will stick with one store until I've ironed out the kinks (e.g. costs of dealing with damaged parcels) and then look to scale. To test the business model, I believe the next thing we need is customers.

  4. #4
    DF VIP Member
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    Default Re: I've launched my startup, I need DF's help!

    Bit of a Liberty when you're not even VIP!! just sayin'!
    If at first you don't succeed.....redefine success. . . .


  5. #5
    DF VIP Member Squizza's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Hey,

    I have noticed a lot of stores in London due to open soon that do a similar thing: www.doddle.it/
    Have you seen them and looked into what they do?

  6. #6
    DF VIP Member akimba's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    even ebay have teamed up with Argos you can get a lot of your ebay items sent to your nearest Argos shop at no extra price.

  7. #7
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Quote Originally Posted by blaggard View Post
    Bit of a Liberty when you're not even VIP!! just sayin'!
    Sorry if I've overstepped the mark!

    Quote Originally Posted by Squizza View Post
    Hey,

    I have noticed a lot of stores in London due to open soon that do a similar thing: www.doddle.it/
    Have you seen them and looked into what they do?
    I hadn't heard of them, thanks! They look like a very good idea. However, they still have a fixed cost per store, which will limit their reach and scalability, and increase their cost to the customer.

    Quote Originally Posted by akimba View Post
    even ebay have teamed up with Argos you can get a lot of your ebay items sent to your nearest Argos shop at no extra price.
    Thanks. To me this is another validation of the growing market...

  8. #8
    DF VIP Member Squizza's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Argos are starting to do collection points from Tube Stations also.

    And you can now 'click and collect' your groceries from Sainsburys/Asda/Tesco in many Tube Station car parks. Will not be long before they jump on the parcel collection also.

  9. #9
    VIP Member CzarJunkie's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Quote Originally Posted by Kushty View Post

    The biggest mistake of startups (according to Steve Blank) is scaling early. I will stick with one store until I've ironed out the kinks (e.g. costs of dealing with damaged parcels) and then look to scale. To test the business model, I believe the next thing we need is customers.
    As a consumer, the biggest hurdle for me is it's lack of integration with retailers. I don't know any consumer who wants to have to make a purchase at one store then organise delivery at another website. The majority of your competition have done it so the experience is seamless. Surely there's a reason why?

    I still think you will need to spend a lot on marketing to make the public aware and to attract stores. Don't rely on your business to go 'viral', otherwise you will certainly miss the boat. Unless you've already got investors interested, I'd hit a site like Seedrs and seek investment, as you are going to need to ramp up quickly.

  10. #10
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    Default Re: I've launched my startup, I need DF's help!

    Your website looks really good and I think its a good idea.

    Goodluck.

  11. #11
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Quote Originally Posted by CzarJunkie View Post
    As a consumer, the biggest hurdle for me is it's lack of integration with retailers. I don't know any consumer who wants to have to make a purchase at one store then organise delivery at another website. The majority of your competition have done it so the experience is seamless. Surely there's a reason why?

    I still think you will need to spend a lot on marketing to make the public aware and to attract stores. Don't rely on your business to go 'viral', otherwise you will certainly miss the boat. Unless you've already got investors interested, I'd hit a site like Seedrs and seek investment, as you are going to need to ramp up quickly.
    Thanks for the feedback. I agree the lack of integration is the worst part of the customer experience (when everything goes well). However, it's also what allows it to work with any retailer. The seamless experiences have to be managed closely, so only work with select retailers. Essentially, NearCollect will allow you to get a parcel delivered when there simply isn't a seamless alternative. It's not as big a market... but it's a market. ByBox seem to be successful and you need to organise delivery on their site separately as well.

    I take your point about viral, thanks. Thinking about it more, I will need a controlled roll out. I'm going to be pitching for investment in London over the next few months and I'll have a look at Seedrs.

    Quote Originally Posted by Ashley View Post
    Your website looks really good and I think its a good idea.

    Goodluck.
    Thanks!

  12. #12
    DF VIP Member consoles's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Good luck with it all mate, most people talk the talk very few get off their arse and walk the walk.

    2 Thanks given to consoles

    Kushty (2nd December 2014),  rIKmAN (3rd December 2014)  


  13. #13
    DF VIP Member Over Carl's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Couple of thoughts I have:

    Have you thought about any value added services you could tack on? E.g. at this time of year if business was booming, I wouldn't be surprised if you could sell parcel wrapping services. Or for example have a couple of booths where a recipient can view a video from the person giving the present, and they are filmed opening the present and this is emailed to your customer. Maybe even extend the idea from parcels to providing other conveniences at a premium. I suspect Old St would actually be a great place to try out some ideas like that.

    Advertising. I remember looking into the price of the CBS ads on the tube and I was shocked I thought some were relatively affordable. Old St Station has a massive number of potential clients passing through on a daily basis, and I remember when I used to work there it was quite common to see people handing out various freebies to promote various companies.

    I remember seeing a similar service to your idea offered by a major shipper last time I looked at parcel2go. I think it was UPS, the idea was you drop it off at one of their access points, then UPS get it to the recipients nearest access point in order for them to collect.

    Have you thought about maybe being an agent for companies like Hermes and UPS at the beginnning in order to help get you some trade and help get your shop known as the place to go? Might make expension plans more affordable until your business is doing so well you wouldn't dream of working with the competition.
    Last edited by Over Carl; 2nd December 2014 at 10:45 PM.

  14. #14
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    Thanks Over carl. I want to concentrate on testing the core business model first, so won't do value added services for a while at least. Also, these are your run of the mill newsagents. I don't think they'll want to/be able to do those services well.

    I'll have a look at the advertising. One page in Old St station could be just the ticket!

  15. #15
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    The trial has been successful and I'm now looking to sign up networks of collection points and sign up to integrate with a retailer's checkout.

    Do any of you have any contacts or suggestions for signing up collection points e.g. convenience store networks, petrol stations etc.

    Also, I need to know the top 100 or so UK retailers using Magento and also the top 100 or so UK sites using WooCommerce, to guide me on who to approach for integration. Do you know where I could find that out? Sites like below seem to have the data but it's very expensive to get!

    https://www.similartech.com/technologies/woocommerce

    Thanks!

    Thanks to Kushty

    Over Carl (26th April 2015)  


  16. #16
    DF General DogsBody
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    Default Re: I've launched my startup, I need DF's help!

    Fleabay use Argos. why not give them a call

    Thanks to Mickey

    Kushty (26th April 2015)  


  17. #17
    DF VIP Member losttoy's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    How about getting it integrated with linnworks?

  18. #18
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    I won't approach Argos just yet because I would prefer someone who isn't acting for a collection point for anyone else. I think it will confuse things for them.

    Linnworks is an Order Management System I think. I think we only need to integrate with retailer checkouts. That will then populate the address with a unique code. The OMS won't need to do anything special with it.

  19. #19
    DF VIP Member Kushty's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    If any of you can spare a moment can you follow/like/share my startup on facebook and twitter please? Thanks!

    https://twitter.com/NearCollect
    https://www.facebook.com/pages/NearC...95286033951267

  20. #20
    DF Super Moderator piggzy's Avatar
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    Default Re: I've launched my startup, I need DF's help!

    I cant understand why you wouldn't be too late in the game for this mate. Hope I'm wrong for you ..

    Good luck

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