Awayco

*** the paragraphs and product designs below are part of a product proposal and feedback for a company and their product offering + business model analysis. I thought it was a good example of how I like to work and the relationship of how I think about product design in regards to business, product, and opportunities, and it also shows a glance of my communication and writing styles. ***

{ continued from email... } In my opinion the second set of feedback exposes 2 fundamental concerns.  LTV which is paramount in any subscription biz model, and TAM.  Some of the people I've spoken with here in Bali didn't want to sign up, or have signed up with the intention of canceling once they return home, because they don't surf much at home or awayco isn't available in their area.  This restricts TAM to people who live on the coasts near awayco locations or who travel for the sport to awayco locations very frequently - what I'd call enthusiasts.  No matter how awesome the service is, if people only use it 1-3 months per year it'll be tough as hell to get them to justify paying 12 months a year.

I'm sure you guys know this and I don't think it's a revelation, but it leads me into what I see as the bigger picture/opportunity and a possible solution.

By introducing a credit system & working out deals with existing demo/rental providers and negotiating rev share (like Classpass does w/ studios) this immediately opens thousands of markets globally allowing for much faster scaling and eliminating up front costs of purchasing the equipment and ongoing costs of maintainence. It also caters to different levels of users allowing the range from beginners to enthusiasts to pick the price point + usage amount that reflects their lifestyle.  Once you've reached reasonable scale then customer lock-in could be justified.  Now you've cost effectively 100x'd your TAM and enabled people to more easily justify paying at a level they're comfortable with. My hypothesis is that this would drastically reduce churn and extend LTV.

The top-of-funnel opportunities are exciting then - capture people in their travel desinations and convert them into longterm customers when they can justify using the service back home. ex.  Family of 5 from Chicago on a ski trip to Breckenridge.  They show up to rental shop - "you can either pay $350/person for the week, or this service at $60/mo and you can use it for activities all around Chicago (sub Charlotte, Birmingham, Mexico City, wherever...) when you get home too." The service becomes a no-brainer and captures people at the need/pain/purchase point without much ad spend or high CACs.

Now you have a user base that can use your product year-round no matter if at home or on vacation. Get off the plane in Honolulu, Austin, or St Louis? Check Awayco to see what's around and get outside. In Vail, Bondi, or Canggu? Don't just use your subscritpion for surfboards or skis...on down days use it to rent your scooter, standup paddleboard, or a snowmobile tour. Scales to hundreds of use cases in thousands of markets with the same ethos == getting more people outside (that's prob a good tagline for pr too).

This is an interesting point of emphasis I learned from the Vail marketing team and their season pass objectives: they'll do anything to get people justifying trips to their properties. This has lead their strategic investment and partnership efforts. That's why each year they aggressively buy mom & pop ski hills outside of midwest & east coast municipalities or international resorts. They saw an increase in trips to Vail and their other 'major' resorts because these people now owned season passes so they figured they were 'saving money' (which is flawed consumer physchology considering the average family of 4 spends $40,000 on a trip to Vail).

IMO this is what would get Vail really exctied about a potential partnership - having users locked in to a paid service that makes it easier to justify a trip to one of their properties.  Vail isn't a huge fan of the independent rental shops (that they don't own) so if we could sell them on a vision of how simple rentals through awayco would be for their customers and how it'd lead to more skier days on the hill then I believe they'd be keen to work together.  Their repeated mantra is make it easier for people to get on the mountain and this does exactly that.