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Re:Houzz raising $400M at $4B valuation by owenversteeg on Friday June 09, 2017 @08:10PM (#14525492)
Houzz is one of a few bigger unicorns that I actually believe has a chance in the long run. First of all, it doesn't depend on being sexy or trendy like a social network, so there's no reason why the business will fail eventually. People almost certainly won't be using Snapchat in 50 years, but they will be buying houses.

Additionally, houses are an absolutely massive market. Housing is the largest expense of most people I know, and there's a ton of price weirdness. A kitchen remodeling might cost $14k, and that's not something you can buy on Amazon, and it's not like you can get your kitchen remodel done in China for cheaper (well, unless your house is in China.) If you were planning on $15k for your remodel, and a local contractor would offer $14k, but Houzz sends you to a "Houzz professional" contractor that offers $16k, you'll probably trust Houzz and accept $16k without questioning too much.

That's two thousand dollars from one kitchen remodel right there. Of course, that's not how Houzz's business model works right now, but there are lots of ways they can make money. You're also not going to accept that price discrepancy from any other consumer-focused things. Say, a laptop: if the new Macbook was $1600 in Best Buy and $1400 on Amazon, almost everyone would just buy from Amazon.

Additionally, they have a surprising amount of name recognition among the wealthy. I know a decent amount of wealthy people, and a few ultra-wealthy people, and I've heard maybe 25% mention Houzz. If you can get even a tiny portion of the ultra-wealthy-house-spending market, you're golden. Remember, the ultrawealthy have most of the world's wealth, and they spend a lot of that on ridiculously fancy houses with no care about cost.

Finally, there's no "bomb factor". Maybe there'll be a scandal tomorrow about Facebook selling your photos to some evil actor. Maybe Snapchat will get a massive lawsuit about its storage of millions of inappropriate pictures of underaged people. But how are you going to get angry at Houzz?

Re:Houzz raising $400M at $4B valuation by smnscu on Friday June 09, 2017 @08:33PM (#14525577)
Holy shit, this. If I could get a contractor or a remodeling project like I would an Uber, with a reputation and history system, I'd choose it in a heartbeat, even at a premium. I wonder how they deal with people bypassing the system to avoid their fees (e.g. AirBnb).
Re:Houzz raising $400M at $4B valuation by tcbawo on Friday June 09, 2017 @09:15PM (#14525689)
This is notoriously hard to do, if not impossible. Every home project is unique, where unknown and unforeseen issues arise all the time. Plus, like many service companies, they have turnover and a growth arc which makes them a moving target. I've used Angie's list before, which was valuable, but with ultimately mixed results. They seem to promote a model of getting good quality, but where price varies from inflated to egregious.
Re:Houzz raising $400M at $4B valuation by shostack on Friday June 09, 2017 @11:20PM (#14525998)
Everything you stated is true, but just points to how much value there would be to unlock for a company that could crack this nut.

But most of the attempts refuse to take on any liability for themselves, and half the reason to use such a company would be accountability and reduction of personal risk.

For the various home projects I've done before, it always feels like such a gamble with a ridiculous amount of information asymmetry, although thankfully the internet has made great strides in fixing that part of the equation.

Re:Houzz raising $400M at $4B valuation by doug1001 on Saturday June 10, 2017 @07:35AM (#14526987)
i thought this Thumbtack's vertical (which i assumed includes the vetting via ratings history, etc.)
Re:Houzz raising $400M at $4B valuation by cdr on Saturday June 10, 2017 @05:02AM (#14526680)
Uber deals with a commodity - the variance in someone driving you from point to point is pretty low, and the qualitative parts are basically all consumer visible.

The market for contractors is basically a market for lemons. There's 10 bad to downright criminal contractors for every good one, and most customers have no way to judge the actual quality of the work until it's months later and something falls apart.

Re:Houzz raising $400M at $4B valuation by wavefunction on Friday June 09, 2017 @11:52PM (#14526078)
If you're in the Austin area please let me recommend my friends' startup Quick Residential Rescue[0]

Some great gentlemen who realized that for skilled-tradesman, the real bottle-neck is lead generation. And more importantly, they respect and treat their partners and customers with the utmost of care and regard.

UT picked them up for a major "refreshment" of thousands of units of campus housing and they've completed some stunning work in the short-term-rental market here in Austin with investment properties.

The last time I talked to one of my friends over there, they were focused on the short-term-rental/AirBnB reworks of investment properties as it was lucrative and exploding.

They've only experienced organic growth from what I know which is really remarkable considering their success so far. I'd love to see them meet up with a formidable equity partner and see what they could do at an even larger scale...

[0]https://www.yelp.com/biz/quick-residential-rescue-austin-2

Re:Houzz raising $400M at $4B valuation by pg_bot on Saturday June 10, 2017 @09:51AM (#14527300)
Just hire Homepolish if you want an interior designer to help you remodel your space. Best kept secret in the startup world. https://homepolish.com/
Re:Houzz raising $400M at $4B valuation by mi100hael on Saturday June 10, 2017 @08:59AM (#14527161)
Doesn't Angie's List already basically do that? I'm getting a fence right now and it's been easy to send a quick message to a few contractors and schedule estimates.
Re:Houzz raising $400M at $4B valuation by guimarin on Monday June 12, 2017 @12:21PM (#14538472)
You've just described buildzoom.com exactly. Check them out.
Re:Houzz raising $400M at $4B valuation by dplgk on Saturday June 10, 2017 @07:04PM (#14529695)
Try thumbtack.com or Home Advisor.
Re:Houzz raising $400M at $4B valuation by TaylorGood on Friday June 09, 2017 @08:13PM (#14525503)
A friend does high-end interior design and treats Houzz as a bible.. that is, something her company needs to maintain a visual presence and positive reputation on. In her book it's prioritized above Facebook, Instagram, etc.
Re:Houzz raising $400M at $4B valuation by hkmurakami on Friday June 09, 2017 @09:19PM (#14525696)
Not just that -- I was thinking about what "Zenefits for residential housing" would look like, and Houzz is clearly the leader in establishing a platform in that space.

Once you have the hub relationship with homeowners, you can add however many spokes as you please.