Who /lean/ here?
Have any of y'all ever messed around with the subscription model, e.g. Dollar Shave Club, Graze, etc.?
I think there's a lot of opportunity in that market right now, and it provides a great environment to test out really lean start-up ideas.
I was going to make a care package that provides your monthly essentials for about 25 dollars per month. You would be able to add different add-ons like a plus (items you'd need every 3 months like lotion), men and female packages for like 10-15 month. We were going to start by delivering packages via car delivery to cut cost on shipping. As well as ship to my country(Canada) and expand from there. Unfortunately the idea fell off when my team did not have enough capital investment.
I also thought there were too many prices that shrunk our 15 dollar margin to a 10 dollar margin. I still think the idea would if we had enough capital and altered a bit. I even have a complete business plan if anyone's interested.
Word, that sounds like a pretty solid idea, I'd definitely be interested in seeing your complete business plan.
We're working on trying to start up a business with a similar kind of subscription model. WE're trying to sell a kind of "care package of cool," I
d love to hear what you think of the website -- http://www.retro-zine.com/
Nobody who does this shit will tell you that their profit margins are terrible, but they are. If you hear anyone talk about it on r/entrepreneur on reddit just ask them about their profit margins.
I feel like the margins would be pretty good, since for a lot of those companies they are basically reselling items plus the value they ad in curating and selecting specific ones, which is a process that can be applied to a ton of product really easily.
I actually really like this idea, to the point where I'm almost willing to put out a burner to see your business plan. What would you do about inventory storage? Did you have relationships with any suppliers in the works? What market were you initially going to be operating in? How much investment capital were you trying to raise? (freebux, not leafbux)
This is where we ran into problems, we're young and it's going to be our first business. We didn't have much money, I had 5k down, and was going to look at getting subsidies (5k for young entrepreneur), but we didn't even think that was enough to cover our order on packaging. We were working our way to a kickstarter campaign, but we didn't think our idea was cool enough to get funding since it was more of a service than a technology.
We were going to run our inventory base through one of our basements as we figured we'd have a small customer base to start off with, and grow mainly through word of mouth
Our target market was mainly focused on busy millennials trying to advance in their career and worked alot. They would be 20-34 years old and usually single, living in a condo. The market would also be aimed towards university students (parents may pay for it, as they don't have much money, to take care of themselves) and elderly (hard for them to get out in the winter, may forget, etc). We would advertise in places you'd find these people; cafes, condos, universities, etc.
As our customer base grew we'd introduce new add-ons like for pet owners, student-focused, elderly, family, etc. Each of our add-ons would sometimes come with mystery items, which is a nice little gift we want to show appreciation
I thought our idea was well planned and would work because the margins weren't all that bad (about 15 dollars, maybe 20-25 if you have the right wholesellers), it just wasn't executed properly. I do think if our idea was based in the US it would be a different story though.
The main goal of our idea was to bring convenience at your doorstep