Ask HN: We were told our idea is amazing, but our startup is failing

Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#1

Post by Mamady » Wed, Dec 21, 2011, 12:35 AM UTC

Just over a year ago my co-founder and I started working on our startup full-time. As we developed the product and talked to other people, everyone said our startup is an amazing idea. I even had a situation where a total stranger that I was pitching to, took out her iphone and ordered our product right in front of me - it was amazing.

Our customers also love our product and the feedback has been extremely positive. We didn’t just ask friends and family - we actually validated our product before we committed to it full-time.

Our startup is in the travel industry, we put a new spin on the traditional travel guide. After many months work, we have finally managed to cover most of the popular tourist destinations in the world. We are making sales, but it's a trickle - nowhere near enough to support us.

Here is an example of our product: http://bit.ly/szvH36

We bootstrapped and have reach the end of our funds. Attempts to get incubated via Chile, YC and Techstars have so far been unsuccessful. We haven't gained enough momentum to approach angels.

I had to go back to contract work to start paying bills, but I am still moonlighting on our startup. My cofounder is going to be in a similar situation very soon.

This is what puzzles me... how is it possible that everyone thinks our idea is good, but we haven't managed to gain momentum?

Any thoughts, ideas or feedback on how to keep the company afloat would be great.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#2

Post by Iaks » Wed, Dec 21, 2011, 12:51 AM UTC

My immediate feedback is that you are charging too much. I can buy a travel book which details hundreds of things about SF for ~$20, used $10. I can get a Google itinerary for many places for free.

Second, this seems like an impulse buy sort of item. ( i.e. I'm stuck visiting somewhere new but haven't had time to research it.) A mobile app that allowed quick access to new itineraries via gps look-up might make for a better sales rate. But I don't see anything changing until your price-point accounts for the competition's prices.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#3

Post by SHOwnsYou » Wed, Dec 21, 2011, 12:53 AM UTC

Keep contracting to pay the bills. As you guys save up some cash, hire a designer to make the pages prettier.

So many people will disregard the praise for your site if it's ugly or they can't figure it out.

Edit: A little more food for thought - I opened the page you linked, then went to the homepage, then closed the page. It just didn't appeal to me visually. It wasn't until I saw the comment about charging too much that I even realized you sold something.

So on the cost thing - split test! Run a test between $5 and $10. Seriously. Combine a pretty product with a price that seems just barely over the limit and you will likely find that people are finding your product "re-assuringly expensive". It costs $10 and it's pretty. It must be a high quality itinerary.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#4

Post by teyc » Wed, Dec 21, 2011, 1:02 AM UTC

$5 isn't much if you are able to demonstrate more value - example: personal safety - what are the areas to avoid? where can you find free water fountains? where are the best spots for a cheap meal along the route? You might be able to raise your revenue mix if you had sponsored content.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#5

Post by magsafe » Wed, Dec 21, 2011, 1:03 AM UTC

I think people love "the idea" of your idea. People love to imagine they're off on a vacation to Paris, and they'll have so much to think of, they'll probably want a locally-authored tour guide. So they're excited about traveling, going to Paris and finding lots of cool things to do there. But not necessarily from your guide books. When the time comes to actually go to Paris, the problem for you guys is that there's a TON of free information. You're competing with the simplest of all Google searches: "What should I do in Paris?", not to mention dozens of in-flight magazines, tourist info packets, maps, concierges, coupon books etc etc. When you're competing with so much free information, a $4.99 price point is too high, imho.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#6

Post by _ud4a » Wed, Dec 21, 2011, 1:17 AM UTC

i'll have to agree with SHOwnsYou.

My first impression is not "Wow!". Your website design doesn't have that wow factor with it's design. i would highly recommend either getting a design to do some work for you or download a nice design from themeforest.

also there is no way i would pay any money to find an "itenary" because as mentioned below i can just go on google and search for "what to do in xyz?" and pick and choose the ones i like. so personally i would make it free, redo the design and try and make money from the advertisement. maybe down the road you can make deals with certain locations to add them in your itenary for a fee? sell tickets on your site for those locations and keep a commission? either way, charging for an itenary when anyone can just do a google search for it doesn't make sense to me.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#7

Post by andrewhillman » Wed, Dec 21, 2011, 1:22 AM UTC

Maybe you're using the wrong channels. How about reaching out to biz devs at all the various Expedia-type sites to see if they are interested in doing a little up-selling during check out as an affiliate or something? This would give you targeted users who already have their wallets opened which is perfect for an impulse purchase. I think partnerships will go along way if executed properly.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#8

Post by cnorgate » Wed, Dec 21, 2011, 1:27 AM UTC

I think your business model might be wrong. As Iaks points out below, the $5 price point is not far from that of a used travel book.

Perhaps offer the content free, then work with top restaurants and retailers on the 'tours' you recommend and get them to offer coupons / deals or advertising, of which you can get a cut. People touring a city will get hungry, and if you can point them to a great place, they'll thank you.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#9

Post by LifeAfterCubes » Wed, Dec 21, 2011, 1:34 AM UTC

SHOwnsYou wrote: post #3

Keep contracting to pay the bills. As you guys save up some cash, hire a designer to make the pages prettier. So many people will disregard the praise for your site if it's ugly or they can't figure it out. Edit: A little more food for thought - I opened the page you linked, then went to the homepage, then closed the page. It just didn't appeal to me visually. It wasn't until I saw the comment about charging too much…

Thanks! I think you're right and a great idea. We've discussed a redesign for a while now. We couldn't justify the cost when we were bootstrapping. Now that some cash will begin to roll in again I think it would be worth it.

Re: Ask HN: We were told our idea is amazing, but our startup is failing - what now?

#10

Post by SHOwnsYou » Wed, Dec 21, 2011, 1:34 AM UTC

cnorgate wrote: post #8

I think your business model might be wrong. As Iaks points out below, the $5 price point is not far from that of a used travel book. Perhaps offer the content free, then work with top restaurants and retailers on the 'tours' you recommend and get them to offer coupons / deals or advertising, of which you can get a cut. People touring a city will get hungry, and if you can point them to a great place, they'll thank yo…

I don't think this product entirely competes with travel books.

I think the value is that it makes the decisions for you. You already have your itinerary set in logical/geographic order.

If I'm running through a city for 2 days, I know I can't squeeze in everything. I can either waste time deciding what to do or I can buy this and see something I know will be awesome.

Not to say that there isn't room for other revenue streams or that other revenue streams may be better, but I don't think direct sales should be discounted before a proper test.