be4 u leap columbia univ jan 2014
TRANSCRIPT
Team 15
“Providing apartment review services to international
students looking to relocate to the US”
Team:Ahmed MakhloufSimon ZhuAnna WangLillian Wang
Interviews: 81Day 1: 20Day 2: 20 Day 3: 23Day 4: 18
Virtual Open House
04/18/20232
How does this work
Basic information for free
Standardapartment tour & review
Customizedvalue–added service
• Registration for free database service • Aggregated basic information of the apartment
Location, size, the number of bedrooms, fundamental facilities…
• Report and recommendation based on the key words of search
Location
Report
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How does this work
Basic information for free
Standardapartment tour & review
Customizedvalue–added service
• Agent tour appointment
• Produce very detailed review of the apartment
• Video tour
Room condition Facility & Amenity Safety of the community
SoundproofBedbug historyHeaterLighting
The size of the parking lot
Chinese supermarkets/restaurants
MonitorCriminal history
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How does this work
Basic information for free
Standard apartment tour & review
Customizedvalue–added service
• Comparison report of the apartments listed by the customer
• Conduct interview with previous resident
• Help connected with the local community
• Customized service
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Day1 Business Canvas 7. Key
Partners8. Key
Activities1. Value
Proposition4. Customer
Relationships2. Customer Segments
6. Key Resources
3. Channels
9. Cost Structure 10. Revenue Streams
Server CostsCustomer Acquisition Costs
Students
Realtors
Craigslist
Convenient
Day1 Hypothesis Testing What we thought What we have discovered What we
changed
People would find video a more compelling experience than pictures
• People find video slow to load• Pictures are sufficient to show the
basic qualities of a property.• If people wanted a closer look, they’d
just go in person RestartPeople would be willing to pay for an app and platform to shoot video of real estate
• Customers can upload videos themselves
• Even if they wanted an app, they would only use it once per few years.
“I don’t want to cram my phone with
apps I would use once a year even if they
more efficient”
“Why bother use this app, if I would only
use it once a year”
“I can just used craigslist to upload my
video, I don’t do it that often anyway”
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Technical Pivots
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Day2 Business Canvas8. Key Partners 7. Key
Activities2. Value
Proposition4. Customer
Relationships1. Customer Segments
6. Key Resources
3. Channels
9. Cost Structure 5. Revenue Streams
Creating and publishing professional quality video tours and uploading them to a web portal, where it can be shared via social media or posted to online realty marketplaces
Acting as a proxy that provides apartment review services to international residentsReduced Time & Effort: - Virtual Personal Assistance - Easy & detailed analysis
Get: advertise on official websites, social media & popular BBSKeep: Follow up & obtain feedback after moving inGrow: Develop new services & partnerships
Online:• Company Website• BBS• Social Media• Real Estate
brokers websites
Word of Mouth:• Real Estate
brokers • Alumni
Online PlatformHuman ResourcesLocal office
• Variable Costs: hourly wage for agents, transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based serviceStandard service with single fixed pricing
Real Estate Brokers
UAH
• Build & maintain online platform
• Recruit and train part-time employees
Students/apartment owners interested in selling/renting out apartments
Real Estate Brokers
International Students
- High school- Undergraduat
e- GraduateExpats
• Acquire students
• Partner with real estate brokers
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Day2 Hypothesis TestWhat we thought What we have discovered What we
changed
Customer – Expats or their corporations ✖
• Corporations rely on relocation agencies
• Expats prefer to review apartments themselves
Focus only on international graduate students
Customer – International students are willing to pay $20 – 50 for one apartment review ?
• Chinese students in particular are willing to pay these amounts
• Married couples are also more willing to accept this price range
Focus mostly on Chinese students and married couples
“Compared to the rent I’m going to spend
on the house for the whole year, I would like to spend 1% on a
professional service to help with my choice”
“It helps a lot, I would pay up to
30 dollars to guarantee a nice place for
my family”
“When I relocated as an expat, I would rather spend some time and money in a local
hotel to visit possible options myself”
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Day3 Business Canvas8. Key Partners 7. Key
Activities2. Value
Proposition4. Customer
Relationships1. Customer Segments
6. Key Resources
3. Channels
9. Cost Structure 5. Revenue Streams
Acting as a proxy that provides apartment review services to international residents• Time and cost
saved• Professional
service provided by experienced staff
• Providing a detailed and objective review
Get: advertise on official websites, social media & popular BBSKeep: Follow up & obtain feedback after moving inGrow: Develop new services & partnerships
Online:• Company Website• BBS• Social Media• Real Estate
brokers websites
Word of Mouth:• Real Estate
brokers • Alumni
Online PlatformHuman ResourcesLocal office
• Variable Costs: hourly wage for agents, transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based serviceStandard service with single fixed pricing
Real Estate Brokers
UAH
• Build & maintain online platform
• Recruit and train part-time employees
• Acquire students• Partner with real
estate brokers
1. International Students
- High school- Undergraduate- Graduate
2. Expats
• Quick response
• Catering to family special needs e.g. (schools…etc.)
• Single • 18 – 30 years
old• Mostly Chinese• Tend to apply
in peak season• Little
experience with US housing evaluation
• Married• Long term rent
commitment• Specific needs
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Freshman FangKey Attributes• Single• 18 – 30 years old, mostly Chinese• Minimal income• Tend to apply in peak season• Little experience with US housing evaluation• Convenience oriented
What MattersAble to find a satisfying house in New York City
quickly before coming here for study
Value Propositions• Quick response• Professional help on apartment appraisal• Connection with locals
“I would love to pay a reasonable price for your service if it helps me make quicker decision and build up local
connections”
Customer Archetypes
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Customer ArchetypesMother MindyKey Attributes• Married, with children• 22 – 30 years old, international• Time and money sufficient• Little experience with US housing evaluation• Very high standards for housing condition
What MattersAble to find a safe, wholesome neighborhood
to settle down and raise a family
Value propositions• Best practice after comparing many different
options before deciding• Professional help to find neighborhood
supporting long term commitment• Specific need-fits for education and safety
“We asked a friend to do it, but if we didn’t find anyone, we would’ve been very willing to pay for such a service.”
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Day3 Hypothesis TestWhat we thought What we have discovered What we
changed
Revenue – We should provide standard ser-vice with fixed price ✖
• Free membership or try out attract traffic
• It’s difficult to cover or set price on every unique customer requirement
Introduce a 3-tier pricing strategy
Channel – Advertising in the student group on social media, BBS would be most effective !
• Most student prefer to trust information in familiar student group on social media
• Pushing advertisement through instant messaging and email is more effective
Introduce in Push Marketing Strategies
“I have friends that flew all the way to the
US to inspect the apartment and flew back.”
“Is it possible for you to connect
me with some previous residents? I would like to pay
more if it generates extra cost.”
“If your service is recommended by the
social group I have long time membership, I would
be more likely to try it out”
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Day4 Business Canvas8. Key Partners 7. Key
Activities2. Value
Proposition4. Customer
Relationships1. Customer Segments
6. Key Resources
3. Channels
9. Cost Structure 5. Revenue Streams
Acting as a proxy that provides apartment review services to international residents• Time and cost
saved• Professional
service provided by experienced staff
• Providing a detailed and objective review
Get: advertise on official websites, social media & popular BBS Push digital marketing: QQ, group emailKeep: Follow up & obtain feedbackGrow: Develop new services & partnershipsOffer discount for referralOnline:• Company website• BBS / Social Media• Real Estate brokers
websites/online database
• Student group on instant messaging and email
Word of Mouth:• Real Estate brokers • Alumni
Online PlatformHuman ResourcesLocal office
Transaction based serviceStandard service with single fixed pricing3 – tier pricing
Real Estate Brokers
Online real estate database
Instant message service providers
UAH
• Build & maintain online platform
• Recruit and train part-time employees
• Acquire students• Partner with real
estate brokers
1. International Students
- High school- Undergraduate- Graduate
2. Expats
• Quick response
• Catering to family special needs e.g. (schools…etc.)
• Single • 18 – 30 years
old• Mostly Chinese• Tend to apply in
peak season• Little
experience with US housing evaluation• Married
• Long term rent commitment
• Specific needs
• Variable Costs: hourly wage for agents, transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
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Customer Relationship
Get Keep Grow• Advertise on
university BBS and social media
• Develop partnership with brokers and RE database, advertise on their website
• Push digital marketing through instant messaging terminal
• Email target customers through the mailing list of student associations
• Follow up and collect feedback • Improve services
and update to the customers• Send holiday or
birthday greeting emails
• Offer discount for customers who require more apartment tours• Offer discount for
referrals• Develop partnership
with more influencing real estate websites
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Pricing Strategy
* Additional tours are priced @ 0.4% of annual rent
• Free for registered customers
• $40 per tour & review * • 10% discount off for more than 5 tours• 20% discount off for more than 10 tours• Get one for free for every 3 referrals
• $20 per extra value-added service• Negotiate with customer about the price
Basic information for free
Standardapartment tour & review
Customizedvalue–added service
04/18/202317
Day4 Hypothesis TestWhat we thought What we have discovered What we
changed
Resource – Hiring local international students as part-time employees is cost efficient !
• International students are willing to help fresh alumni even if not paid a lot
• Chinese new comers prefer to pay the service provided by a Chinese student
Providepart-time jobs for international students
Partner – We can partner with University housing dept. to increase reliability ✖
• Official cooperation is not permitted• But International Student Association
are positive in partnering with us
Divert to partner with Student Association
“As much as we staff would like to
assist you in your startup idea, it’s not permitted for us to
cooperate officially with you at this time”
“Grateful of the help the senior alumni have given me, I would like help out the new
comers as well”
“As long as your business really solve problem of student in our association, we
are open to a long time partnership”
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Day5 Business Canvas8. Key Partners 7. Key
Activities2. Value
Proposition4. Customer
Relationships1. Customer Segments
6. Key Resources
3. Channels
9. Cost Structure 5. Revenue Streams
Acting as a proxy that provides apartment review services to international residents• Time and cost
saved• Professional
service provided by experienced staff
• Providing a detailed and objective review
Get: advertise on official websites, social media & popular BBSPush digital marketing: QQ, group emailKeep: Follow up & obtain feedbackGrow: Develop new services & partnershipsOffer discount for referral
Online:• Company website• BBS / Social Media• Real Estate brokers
websites/online database
• Student group on instant messaging and email
Word of Mouth:• Real Estate brokers • Alumni
Online PlatformHuman Resources- International Student as part-time employeesLocal office
Real Estate Brokers
Online real estate database
Instant message service providers
UAH
International Student Association
• Build & maintain online platform
• Recruit and train part-time employees
• Acquire students• Partner with real
estate brokers
1. International Students
- High school- Undergraduate- Graduate
2. Expats
• Quick response
• Catering to family special needs e.g. (schools…etc.)
• Single • 18 – 30 years
old• Mostly Chinese• Tend to apply in
peak season• Little
experience with US housing evaluation• Married
• Long term rent commitment
• Specific needs
• Variable Costs: hourly wage for agents, transportation expense, recruiting & training costs
• Fixed Costs: Utilities- Server & IT costs;
Transaction based serviceStandard service with single fixed pricing3 – tier pricing
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Cost StructureFixed cost
System development
cost
Variable cost
Labor cost $10 per tour Training cost
Ways to keep cost low• Hire international students as part-time labor• Divide customers into groups based on their university
community• As our database grows, the average labor cost will
decrease
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Next Steps
Week
• Investigate pricing structure
• Expand customer demographics
• Website payment and registration
Month
• Begin orders and sales to Test full process
• Formalize and test Agent Training script and video template
• Get feedback on delivered product
• Scale up Website to automate transactions
Year
• Prepare for prime rental season (Summer) by scaling up employee base and marketing
04/18/202321
Appendix
Market SizingTotal Available Market:• 1.74 Mio international Grad
students*• 50% of existing student need
housing• 3 house reviews per student
• $30 per review• 5% Annual Growth
Total Market Size$780 M
Total Potential Market$200M
OurOpportunity
$20M
*Chronicle for higher Education- chronicles.com/article /Graduate-School-Enrollments/141577/
Competitive Analysis
Rating
websites
Dat
abas
e
Reloc
ati
on
Agenc
ie
s
Social
Netw
orkReal Estate Agents
Our agents simply provide the information for a much lower fee, the buyer makes the decisions.
We provide agents who are experienced in appraisal, and
trained in our system.
Our convenient online system allows buyers to “visit” homes from
anywhere in the world.
Our agents are paid per visit, not by commission on sales, and are reviewed based on accuracy
“Freshman Fang”:International students
Ages 18-22, SingleMinimal Personal Income
“Mother Mindy”:Globe trotting Professional or
StudentAges 22-30, Married with Children
Substantial Personal Income
Value Propositions
Buyers want an appraisal of their apartment before they sign a long
term lease.
Buyers are often far away from their new location geographically, and cannot visit prospective homes
easily.
Buyers are concerned about the impartiality of the information
provided by brokers and agents.
Buyers are concerned about the high costs and pushy sales tactics of
brokers and agents.