KnocKnocK founder Jordan Liu on why you should purposely start your business small and un-scalable | e27

The convenience of pickup/delivery is actually just one pain point of traditional shops which mobile internet technologies in 2014 were well-developed enough to improve efficiency and reduce cost. We studied a few sectors of household chores and found that laundry services had the highest frequency of usage, and decided to give it a try.

KnocKnocK started with extremely competitive prices, but soon learned that they don’t have to always compete on price:

Our pricing strategy was simple—we positioned ourselves as an internet company, offering a lower-than-market price and making it a no-brainer. The market average price for cleaning a shirt is $4-$5 per shirt, but we priced at $2.9 per shirt (we were fascinated by the rule of “9”) and our slogan is “free pickup and delivery, even if for one shirt.”

We actually learned a hard lesson from the low pricing strategy and we almost got crushed due to it. Now, we understand that every business model has its unique and most viable cost structure, and not every business—even online businesses—needs a low pricing strategy.

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KnocKnocK founder Jordan Liu on why you should purposely start your business small and un-scalable.