MakeSpace, A Dropbox For Real Life Storage, Launches In NYC, Raised $1.3M
techcrunch.com
techcrunch.com
These "It's like X for Y" comparisons are so frustratingly dumb.
People please don't upvote this stuff. You're hurting HN.
I'm Sam the founder of MakeSpace. It's been a long day so my apologies for the delay.
3D printer jokes aside, I had the problem of not remembering where things were in my girlfriend's storage unit. A lot of storage customers have trouble remembering what's in the storage unit in the first place! (The lifetime average $PSA customer is 3 years and 50% of customers > 1 year). So the "access anywhere" analogy to Dropbox is what people (and not just tech people) like to reference when they hear us talk about it.
Also, to your point about "x for y," it works only for a certain type of crowd if both things are well known (and Dave McClure mentions that here: http://image.slidesharecdn.com/howtopitchavc-090321140851-ph...). A lot of YC companies do it when they pitch investors because it's a great way to connect quickly to their audience. When customers call up my 1-888 number; however, "Dropbox for real life" aren't the first words out of my mouth.
It works really well when there are strong parallels. When the comparison is weak (such as in this case) it can serve s a distraction with the audience spending time dissecting weaknesses in the metaphor.
If your metaphor sets up false expectations, explaining that 'actually, it's not like that' becomes a burden.
Our product is a software + services reverse auction procurement solution (go, go enterprise market!). When we started out, our sales staff used a metaphor: "like eBay, but in reverse". Our current training instructs sales staff to avoid that metaphor at all cost, because there are more differences than there are similarities.
Your description is concise, and incredibly apt. That metaphor became a burden. Time during a pitch is incredibly valuable, whether it's in front of a VC or a customer. Time spent explaining how your product is not like something else involves a lot of negative language.
It's not like this...
... only it's more like...
You don't want to spend your time on these conversations. That's why we now train staff to avoid the metaphor, and to shut it down immediately if someone introduces it.
Unlimited upload, paid download. Definitely sounds like these guys were in the tech space before getting into the storage game. It's a good model for them.
And since this is being pitched as a real-life Dropbox, can they "sync" my things between different storage facilities using 3d scanners and printers? ;)
Also, from MMS regarding the van: Keep in mind that the Storage Taxi provides a one-way trip, not a round-trip. For example, if you need to bring more items into storage, you would book the storage taxi to help you get the stuff there; getting home, though, you'd have to rely on the subway, a cab, your bicycle, or your own two legs to carry you.
This is sucky.
Another place I looked at did storage by the cubic foot, so you'd never see the stuff in storage (and they could presumably save money by packing it better). Seems like that would be a great model for you to use for people who never actually go to their unit.
"Honey, where's that extra photo album?" "It's in storage, do you want to pay $29 to have them bring it over?"
The real problem is people have too much crap and are unwilling to get rid of what they don't use. I'm a data packrat but at least it only costs me a $100 3TB drive every few years.
EDIT: I should have read the article. The parent comment didn't mention the annual fee. That makes more sense.
- Total self storage rentable space in the US is now 2.3 billion square feet
- 9% of all American households currently rent a self storage unit
- 7.3 sq.ft. of self storage space for every person in the US
Source: http://www.selfstorage.org/ssa/content/navigationmenu/abouts...
Note: I have nothing to do with that company :)
The real thing I love about it is that it's per-box pricing. The thing I hate about storage spaces is that if you get rid of some stuff in it, you are paying exactly the same amount. With Boxbee if you get rid of a couple of boxes, your bill goes down the next month.
Onward valiant disruptors...
But that's not what they did. Where's the "here's to the crazy ones"?
Are there any competitors in this space, or is this a new concept?
Put it this way: as long as you let me look inside first to make sure you aren't storing anything that will get me arrested or burn my house down, you're welcome to store four 18" cubes in my garage for $25/month.
I agree, it doesn't sound like a good deal, although I don't have experience living in NYC.
For comparison, this wine storage place charges $3.35 per carton, about the same as a 18" cube, and $10 per delivery. http://www.vinfolio.com/services-storage-overview.jsp
I like the idea a lot, in principle, but the rates amount to robbery. Hopefully some other competitors will disrupt this particular "disruptor" by offering the same service at a more reasonable price.
I hope they offer larger boxes or rather, standard pallets. After all, the boxes will be storage in typical bins in a warehouse. Industrial warehouses rent out indoor pallet-sized bins (4ft x 4ft x 5ft = 80cu ft.) for about $12/mo. If they charge a customer $25/mo for 12cu ft and stack even 5 customers in one pallet (60 cu ft), they make $25*5 - $12 = $113 => 90%+ gross margin. This is just monthly storage. Of course the warehouse charges handling fees but they would certainly offer price breaks when 1000+ bins are rented out.
This can be a very profitable venture if the marketing and customer service is done right and their small apartment dwelling customers wouldn't have to rent a car or ask friends for a ride just to storage the christmas decorations each year. All in all, just what a real-world startup is supposed to be.
The Pod moving/storage unit was basically in units of half-size shipping containers. They would deliver on a date, you'd move your stuff in, and schedule a pickup. Keep the unit in their facilities as long as you care to pay the rent, then kickoff the "download" process whenever you were ready.
The contracts for those things are long and confusing, the people I've dealt with there are incompetent, and the one on 12th Ave in Seattle smells like piss pretty much constantly.
http://nypost.com/2013/08/25/new-yorkers-spending-300g-on-st...
http://www.nytimes.com/2009/09/06/magazine/06self-storage-t....
The cassettes are like audiobooks, he explained — tutorials on how to get into the storage industry and succeed. He made them before the storage-facility building boom ended a couple of years ago. “They didn’t sell,” Litton said, “so they’re all in storage now.”
I would use this service if it were more flexible. For instance, I have a 20kg inflatable canoe that I carried around from Frankfurt to Munich, from Munich to Bruges and in March from Bruge to Munich. I use the canoe only few times a year. If I could pay few bucks per month to live it somewhere and then ship it with UPS (at good prices), it would be big for me.
More importantly, if I had a place somewhere in Germany, I would buy a foldable canoe. The same with other stuff like furniture and all, all stuff I would have liked to buy but I couldn't as I move so much.
At that price why not just rent a 2nd apartment, it would be cheaper. I can already see next weeks TC headline: "2ndAprtmnt: Hetzner for storage"
That's a good incentive to declutter your life.