Episode 22 - Tim Mevel - HelloZack, Hello Convenience
Key Points
HelloZack noticed the difficulties of selling used products, sought to make it easier
Started initial pilot in California, buying up anything and selling on consignment
In the beginning, nothing was automated but they have gradually introduced tech tools to help streamline processes
Seeking a better customer experience than current models
Pivoted in 2016 to focus exclusively on Apple products
Payment for Apple products, anytime, anywhere
Specially trained team rather than outsourced
Raised capital from private investors & also bank loans, to help cover payment terms
Tim Mevel of HelloZack was raised with a background of entrepreneurship, so diving into the startup world wasn’t a surprise move. During his studies, he and his co-founders set up the first version of the company in Berkeley, where they picked up anything people wanted to get rid of, and sold it for them online. The convenience was a big hit; just avoiding the flood of spam and scams won over a good following.
Over time though, the team realized that selling anything and everything required a lot more time and storage space than they’d imagined. While popular, the V1 model wasn’t scalable so in 2016, they pivoted. The team stepped back and looked at their most popular items, and what was the least taxing in terms of time to resell, as well as storage space. Apple products were the clear winner, as they remained highly popular but also took up less space than many other items. Tim and his team have accepted that mistakes are bound to happen, but more importantly, they’ve made a real effort to learn from those mistakes.
HelloZack’s founders knew it didn’t make sense to invest a lot of money into something that hadn’t been tested; it’s easy to spend a lot of money and time, only to learn that the market isn’t interested. As the company presses forward, they’re now investing more into the technology behind the scenes to make it all work better for everyone.
Moving forward, HelloZack is eager to become profitable, which will happen soon, so they’re working with banks to help carry them through the 20-30 day payment terms. This helps their cash flow and prepares them for the next phase of the business, which is international growth.