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Show HN: Ernie's, Click & Collect Groceries

erniesgrocery.com

11–20 of 65 posts

Re: Show HN: Ernie's, Click & Collect Groceries

#11
This is an interesting concept. But I see a couple of issues:

- You need physical stores. These take a lot of money and expertise to set up and run. And to expand/scale in any meaningful way will take a LOT of money. Plus of course you've got the added expense of having to actually do the shopping on behalf of your customers (ie walk round your inventory and fill the basket). Kind of the opposite to the Ikea model. As Ryan Air have conclusively proved, people will put up with ANYTHING if it's cheap(er).

- Your stores are going to have to be as big as a supermarket to really be of use to people.

And on the competition side:

- What's the advantage over just ordering my goods online from a supermarket? I don't even need to go to the store then, they just get delivered to my front door. Or do supermarkets not do this in the US? IN the UK at any rate you can choose very specific delivery times as well.

And on the marketing side:

- 40 minutes in a grocery store? You can easily spend this much time online filling up your basket. Personally I've never felt that online ordering has saved me much time. The USP of online shopping is not time saving, it's "when" saving - I can do it during a quiet time at work for example. But with Ernies I still gotta go pick it up...

- 73 hours per year? Doesn't sound like much to me. And walking round the store is healthier than sitting in front of your PC :)

Re: Show HN: Ernie's, Click & Collect Groceries

#12
post #11

This is an interesting concept. But I see a couple of issues: - You need physical stores. These take a lot of money and expertise to set up and run. And to expand/scale in any meaningful way will take a LOT of money. Plus of course you've got the added expense of having to actually do the shopping on behalf of your customers (ie walk round your inventory and fill the basket). Kind of the opposite to the Ikea model. A…

"Your stores are going to have to be as big as a supermarket to really be of use to people."

Not necessarily. You could make more efficient use of space if you don't have to arrange the store to be customer-friendly.

"I don't even need to go to the store then, they just get delivered to my front door. Or do supermarkets not do this in the US?" Most places, no. Where they do, it's more expensive.

"Personally I've never felt that online ordering has saved me much time."

It certainly could if it were done well. Don't you normally buy a lot of the same things? A good interface would remember that and help you reorder favorite items quickly. Also, groups of items - "all the stuff I need to make recipe X." The store could even upsell by suggesting a recipe and selling you all the items you need to make it, then including a printout of it.

Think how quickly you could shop if you could specify the meals you want to make this week instead of looking for each item individually.

Re: Show HN: Ernie's, Click & Collect Groceries

#13
post #11

This is an interesting concept. But I see a couple of issues: - You need physical stores. These take a lot of money and expertise to set up and run. And to expand/scale in any meaningful way will take a LOT of money. Plus of course you've got the added expense of having to actually do the shopping on behalf of your customers (ie walk round your inventory and fill the basket). Kind of the opposite to the Ikea model. A…

I live in the south east of the US (where this store is hoping to open) and there are no grocery stores that allow you to order online here. The only option is to go to the store and shop for yourself.

You are right that you could spend 40 minutes filling up your online basket, but what if you could save your basket and re-order it the next time you "go shopping." Thus you fill up your basket with the items you already buy every time you go the grocery store, then you never have to fill it up again...Could be a big time saver.

And 73 hours per year to me I think in terms of what else could I be doing with that time? My going rate is $80 per hour so that's $5840 I could be making instead of grocery shopping. And sure it's more fit to walk around the store, but perhaps I'd rather go to the gym and actually do a real work out?

Re: Show HN: Ernie's, Click & Collect Groceries

#14
post #11

This is an interesting concept. But I see a couple of issues: - You need physical stores. These take a lot of money and expertise to set up and run. And to expand/scale in any meaningful way will take a LOT of money. Plus of course you've got the added expense of having to actually do the shopping on behalf of your customers (ie walk round your inventory and fill the basket). Kind of the opposite to the Ikea model. A…

"Your stores are going to have to be as big as a supermarket to really be of use to people." Not necessarily. You could make more efficient use of space if you don't have to arrange the store to be customer-friendly. "I don't even need to go to the store then, they just get delivered to my front door. Or do supermarkets not do this in the US?" Most places, no. Where they do, it's more expensive. "Personally I've neve…

> You could make more efficient use of space if you don't have to arrange the store to be customer-friendly.

I didn't mean physically particularly, I was thinking more about the range of inventory required. Let's imagine 80% of people want 20% the same stuff. So yeah you could optimise by stocking just that 20%. But I bet you people will move back to ordering from the supermarket where they can get 98% or 100% of what they want. It's just easier than ordering from two places, items don't get duped or missed and of course it's quicker.

Re: Show HN: Ernie's, Click & Collect Groceries

#15
post #13
post #11

This is an interesting concept. But I see a couple of issues: - You need physical stores. These take a lot of money and expertise to set up and run. And to expand/scale in any meaningful way will take a LOT of money. Plus of course you've got the added expense of having to actually do the shopping on behalf of your customers (ie walk round your inventory and fill the basket). Kind of the opposite to the Ikea model. A…

I live in the south east of the US (where this store is hoping to open) and there are no grocery stores that allow you to order online here. The only option is to go to the store and shop for yourself. You are right that you could spend 40 minutes filling up your online basket, but what if you could save your basket and re-order it the next time you "go shopping." Thus you fill up your basket with the items you alrea…

From the sounds of things US supermarkets do not have the online and delivery presence that they do in the UK. I reckon the 4 major supermarkets here deliver to 98% of the population, same price as in-store with free delivery (hourly delivery spots do cost a bit extra though).

So maybe there is a market for this across the pond. But then you've got the risk that the US supermarkets get their act together (and really it would amazing if they didn't).

Re: Show HN: Ernie's, Click & Collect Groceries

#16
I'm at work, and so don't really want to watch the video, so I'm going to ask directly:

What does this give me over Ocado (or their many many many competitors - I mean, Asda deliver?!), who I order from, and then they deliver? This sounds like it just adds an extra step of my having to show up, rather than just agreeing that I'll be sat at home in my PJs watching Jeremy Kyle at the right time...

Re: Show HN: Ernie's, Click & Collect Groceries

#17
Here in Montreal (perhaps also in other large cities) I can order groceries online from any of the major supermarkets and have them delivered to me (mind you, I don't have a car) for a reasonable minimum order value and a mere $2-3 extra. Maybe you are intentionally not targetting these cities, otherwise the idea is not really new at all.

You want to see a grumpy clerk? Go to Switzerland and forget to put the little sticker on your bags of produce. Damn.

Re: Show HN: Ernie's, Click & Collect Groceries

#18
post #11

This is an interesting concept. But I see a couple of issues: - You need physical stores. These take a lot of money and expertise to set up and run. And to expand/scale in any meaningful way will take a LOT of money. Plus of course you've got the added expense of having to actually do the shopping on behalf of your customers (ie walk round your inventory and fill the basket). Kind of the opposite to the Ikea model. A…

Good feedback, I appreciate it.

"You need physical stores": Sort of. We need physical warehouses. The core of the Ernie's business model is that these locations will be much cheaper to operate than the traditional grocery storefront, therefore increasing net margins. They will take expertise to operate; luckily, this expertise is well-established and readily available.

"Your stores are going to have to be as big as a supermarket": Not necessarily. Our SKU count will have to be big enough to be compelling. But Trader Joe's has proven that a very low SKU count can still be compelling if the value proposition is there. Trader Joe's value prop is low prices. Ernie's is convenience. On top of that, we're cramming our SKUs into a warehouse layout. Our real estate footprint will be much, much smaller than a supermarket.

"What's the advantage over just ordering my goods online... ?": The advantage is in the operations model. Home delivery will always be a much more expensive grocery offering. This results in some combination of fees and/or higher prices. Ernie's is not price premium offering. No fees. It's cheaper for us to sell the same can of beans to you than it is for Safeway. Much less than a home delivery offering.

"40 minutes in a grocery store? / 73 hours per year?": We'll just have to agree to disagree on these points. Those folks that hate wandering around the grocery (or have small children, or are physically challenged, or have better things to do with their time) are who we are marketing to. I, for one, look forward to getting 3 days of my life back every year. :)

Re: Show HN: Ernie's, Click & Collect Groceries

#19
You might consider hitting up Angel List if you haven't done so already. If you're trying to raise for that first store - "proof of concept" before you go after more funds - it seems that might be a good avenue to raise those funds. Good luck to you!

Edit: it will probably help a lot that you've already got a portion committed, btw.

Re: Show HN: Ernie's, Click & Collect Groceries

#20
I like it. One think to take into consideration is people's relationship with food. It's going to be a hard sell for some people to buy produce or meat sight unseen when selection can have a huge effect on quality.

That being said I think you could build a really interesting interface. Also tremendous overhead savings, no cashiers, baggers, carts, storefront. Basically just a refrigerated warehouse and limited staff.

Awesome.

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