How would you create a Costco for millennials?
3-year old startup Boxed is like a warehouse club in your pocket. For those who don’t want to spend hours shopping, download the app and pick what you need and the products arrive at your door within a day or two. Often with free shipping and no membership fee.
Chieh Huang started boxed in his garage. Literally. Today the business has revenue exceeding $100MM.
Inside the Box
Intuitively, you would think this is perfect for New Yorkers who don’t have cars and who don’t have the time to shop. But a large percentage of their customer base comes from rural areas where people don’t have a warehouse club within an hour. Tens of millions of customers in rural communities are in their target audience.
They don’t sell little items so they can effectively share the shipping cost over the price of nine items. There are four warehouses in New Jersey, Dallas, Atlanta and Las Vegas that they operate so they can reach most of the country efficiently.
Outside The Box
But Huang also wanted to create a culture of compassionate and motivated workers so he will pay up to $20,000 for a wedding and full tuition for each child. Wait, what?
Yes, he pays full tuition for each child who goes to college.
As a child, Huang was very poor so knowing how hard it is to pay for college; he felt there was a need to do something. He funds these benefits out of his pocket, so it doesn’t affect the business’ profitability.
Having a motivated workforce and culture that cares about every customer, becomes reinforced by Huang’s generosity. By doing good for others, the company will continue to grow and prosper.
Are you boxed in with how you are thinking about motivating your employees? Are you an employee, who feels as if no one cares?
There is always a lesson to be learned when you find a someone running a business that leads with their heart.
Feeling boxed in with your marketing? Let’s talk. Text me at 919 720 0995 or email me at jeffreylynnslater@gmail.com
Photo courtesy boxed.com
