Why we’re closing Walnut
medium.com
Why we’re closing Walnut
1–10 of 95 posts
Re: Why we’re closing Walnut
#2In short: “What we found was that while many people complain about their moving companies, even the highest income consumers would not pay for a better service. Our mistake was conflating desire for a better product with desire to pay more for a better product”
Re: Why we’re closing Walnut
#3[deleted]
Re: Why we’re closing Walnut
#4"In short, we found product-market fit."
"Despite our early successes, we’ve decided to close Walnut. Our tests revealed that we could create an experience customers loved, but we doubted our ability to be profitable long-term."
If people weren't willing to pay for a product you were offering at a price that would sustain the business, then you did not in fact find a product-market fit.
Re: Why we’re closing Walnut
#5[deleted]
Re: Why we’re closing Walnut
#6Moving is detail-oriented work. Ignoring the simple case and consider moving to multiple locations and not all boxes being unpacked. That requires: 1) Many moving pieces, 2) all labeled correctly, 3) all routed correctly, 4) undamaged, and 5) multi-object units delivered together [0]
Pulling that off with a sizeable move takes a lot of process and discipline, as anyone who has tried to execute a highly detailed IT project knows. Also, people tend to not focus on details when they are exhausted. I doubt you can get it done well at a price people are willing to pay.
[0] For example, a bookcase might include: A 'frame', removable shelves, pins that support the shelves, and for some bookcases a removable back. All these objects must come back together at the destination - 'what are those shelves for?' 'Where are the pins?'
Re: Why we’re closing Walnut
#7I am a Chinese so my family usually have some Chinese contractor do the moving. A couple years ago my family and I bought a home (finally!) and we hired a contractor to come in, after my family and I had packed up everything (since my dad is a jack-of-all-trade kind of a smart man).
The contractor paid two Hispanic workers to do most of the heavy-lifting work, but we also helped anyway so we get the move done ASAP. The hardest thing to move was the heavy massage chair so we let them moved the chair. They are strong...
I don't know how much we paid the contractor in total, but I know it didn't go above 1000. We tipped the contractor and also tipped the workers separately ($150 each). We are very generous when we work with nice and hardworking people. They deserve the bonus, especially knowing the contractor wouldn't pay them a lot. So tipping to us have to be personal, and shouldn't be part of a system.
I mention this story because the hiring process may seem bizarre to the non-Chinese immigrants. Contractors (construction or moving) usually hire workers off the street. There is a place the contractors will find workers waiting to get a job. So yes, these workers are literally picked that morning like 7AM and the guy came around 11AM since the contractor had another job early that morning. The contractor might find another pair the next day.
The truth is, every community has its own way to find people to do work for them. In the Chinese immigrant community, we almost never hire an expensive professional contractor. We (at least the people I know) believe Americans charge us way more for the same, if not, less quality work. We "joke" about how schools can save so much money if they'd pay a licensed Chinese contractor.
My dad also doesn't use Uber because (1) he doesn't speak very good English, and (2) he can call a driver for $25 going to JFK with just one call (plus maybe $10, $20 tip). We can go anywhere in the tri-state area in range of $20-$75 in a comfortable SUV. The Chinese community (Korean and Spanish community also have this) also have a shuttle bus that goes from QueensChinatown, FlushingChinatown, Brookyln 8 aveChinatown for $2-$3 dollar. You call the call center, tell the operator which shuttle stop to pick up from.
"If it ain't broken, don't change." For the same service quality, why go for something more expensive?
Re: Why we’re closing Walnut
#8Amazing write up, thanks for this. Question though - I always thought hiring movers was a higher-end service that targeted richer people? Most people I know rent a truck or U-haul and get their friends to help move for a case of beer...
Re: Why we’re closing Walnut
#9"In short, we found product-market fit." "Despite our early successes, we’ve decided to close Walnut. Our tests revealed that we could create an experience customers loved, but we doubted our ability to be profitable long-term." If people weren't willing to pay for a product you were offering at a price that would sustain the business, then you did not in fact find a product-market fit.
I don't much care about the semantics of product market fit, but there are a lot of companies - some with astronomical valuations - that sell things at prices that won't sustain the business. These guys could have taken other people's money and done the same thing. "We just need to buy market share until the autonomous moving robots are available!"
I applaud them for not doing so. And FWIW I usually find these autopsies annoying but this one is well written and insightful. Applause.
Re: Why we’re closing Walnut
#10Amazing write up, thanks for this. Question though - I always thought hiring movers was a higher-end service that targeted richer people? Most people I know rent a truck or U-haul and get their friends to help move for a case of beer...
Most of your friends probably aren't moving out of a 4 bedroom house with two small children under foot. The want for help changes on the far side of 30.