No_Stress_1313 OP t1_j6um30c wrote on February 2, 2023 at 12:12 AM

Reply to comment by axeville in Market research discussion - have you bought or sold firewood recently in PA? by No_Stress_1313

Correct. Typically marketplace apps connect buyers (demand) with sellers (supply) and take a cut (10-15%). It benefits the seller if they're able to reach new buyers they otherwise wouldn't be able to without paying for marketing or adding an online shop or something else. In your case you already know the buyer so you wouldn't need to use the app. You would continue to pay $25. Other buyers who otherwise didn't know this seller existed could pay we'll say $30/3, a 20% increase to the seller (win!). Middleman takes 10% (win). Buyer gets good wood (win). The question is there enough unmet demand in the marketplace to validate this type of marketplace? Are there seasonal buyers who don't know any wood sellers? Is there a lot of competition in the market? I don't know.. Just trying research more.

axeville t1_j6uu5ed wrote on February 2, 2023 at 1:11 AM

The minute you connect the buyer and the seller they don't need to complete the transaction via the app unless you are delivering it. Once they have done business one time they can pick up the phone. The fireplace isn't moving and the person selling the wood isn't either. Just stuff to consider.
If the people are serious about wood for heat they are looking for high quality seasoned wood bc a load of green or poorly seasoned or mixed wood is really a pain. For that reason they are going to go back to the same person they trust vs using an app to shop. One load of bad wood is painful. (We heated with wood in Lanc city row house in the 80s w a Swedish combo stove, I was the free labor to stack wood and manage the firebox. Many more trips w bad wood than a quality seasoned hardwood)

I don't mean to rain on your parade btw. But don't spend money on development wo thinking thru some of these issues.

axeville t1_j6uuj6v wrote on February 2, 2023 at 1:14 AM

The number of fireplaces in reasonable distance of the wood seller is fixed. Your app won't bring any more fireplaces to the market.

No_Stress_1313 OP t1_j6uw6ay wrote on February 2, 2023 at 1:26 AM

100%! This is exactly the feedback that I am looking for. Do you think there's any correlations to take from food delivery apps where users could also pick up the phone but choose to order online instead? Offering delivery services is one of the options we are considering, but first want to determine if there's enough unmet demand from consumers looking to buy online. For the record, 100,000+ people look for firewood online every month, so that's one data point. But of course the real world operates differently.

axeville t1_j6uyrc8 wrote on February 2, 2023 at 1:45 AM

Uber eats is generous w messed up orders I think. Delivering a large (cord) of wood is expensive for everyone. Load and unload and then find out it's smoky af maybe a month after delivery. That's an expensive mistake. And is also subjective. My wood standards are different than the next guy. Also Uber eats delivers daily and I might get a cord or 2 max each winter for 2500 sf house. Last, in nyc everyone delivers and always has, no need for an app. The food comes from a block or 2 away max or it's cold. The delivery guy comes up the 5 flights of stairs so you don't have to.