Bob's Discount Furniture

Kill a bad idea in two calls: ask operators what the costly part really costs

Whatnot started as a 'full-service Craigslist' that would also handle delivery. Grant LaFontaine messaged delivery heads (for example at Bob's Discount Furniture) on LinkedIn to get per-leg delivery costs. After two calls it was clear there was no margin on low-value used goods, and the team changed direction within about 24 hours.

“So I go on LinkedIn and I LinkedIn all of these people who run delivery businesses, like the guy who runs delivery at Bob's Discount Furniture, the guy who runs delivery at all these other companies. And they take calls with me. I'm like, how much does a delivery cost at scale? And so how much is each leg and how efficient is it? And they were nice enough, they sort of told me. And after doing 2 of those calls, like, this just doesn't work. Like, the cost per delivery relative to the value added on the used item is just, there's no margin there for the business.”

Steal thisBefore you build, cold-message the people who run the most expensive part of your model at existing companies and ask what it costs per unit at scale.