Blue Apron May Need to Raise More Money Soon After Shrunken IPO

Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by mcpherrinm on Thursday June 29, 2017 @07:36PM (#14667687)

I'm not 100% sure this is the right way to calculate costs, but those numbers seem reasonable to me:

You give people their first shipment free, which you'd normally charge $60

1-in-3 people continue after that, so your cost to acquire 1 customer was $90. Tack on an extra $4 for the ads that got them to sign up.

If 1-in-7 people continue, you get into the 400s.

Those numbers seem pretty believable to me.

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Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by mattmanser on Thursday June 29, 2017 @07:47PM (#14667738)

What you charge $60 for shouldn't cost you $60, but I generally support the point. I think you're downplaying the $4.

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Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by naravara on Thursday June 29, 2017 @11:17PM (#14668422)

I think he's talking in terms of unrealized revenue, not cost of production.

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Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by clay_to_n on Thursday June 29, 2017 @08:41PM (#14667924)

Plus all the initial marketing costs to get those people to sign up in the first place.

Which, for an expensive service like this, where very few people are interested, seem significant.

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Re:Blue Apron May Need to Raise More Money Soon After Shrunk... by clay_to_n on Monday July 03, 2017 @01:32AM (#14686058)

(Not to imply that it's a bad service - just meaning that the CAC is a lot higher for Blue Apron than an iOS app - they have fewer, but more valuable, customers.)

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