![]() In the event of loss, damage, or theft the verified customer is held financially liable for the equipment (unless he/she purchases insurance covering the rental). ![]() A seasoned photographer can quickly tell over the phone if a potential client understands why they need to rent a $10,000 lens and what the equipment’s capabilities are. Most competitors used large deposits to insure their products against damage but used both credit algorithms examining inbound orders but more significantly its professional photographer staff to call and vet potential clients to prevent theft or fraud of equipment. ![]() This unique method of funding growth enabled the firm to quickly gain market share and become the market leader with over $10 million in annual revenue.ī aligned its operating model with its business model by creating a website that has the same look, feel, and performance of or where photographers are familiar with acquiring their equipment.Īlso important to the business model’s alignment with the operating model is having an inventory of valuable lenses that can be leased to customers multiple times without damage to the expensive and fragile inventory. His bet paid off and demand for his products quickly accelerated as word of the quality and convenience of his business spread.Īs demand outpaced supply of lenses, began to hold customer’s lenses on consignment and rent the lenses to other customers generating revenue for both and the supplier of the lens. To generate inbound interest on the site he offered free rentals to key influencers in the photography world in hope that they would blog about the company and generate buzz. He then set the company’s initial price on par with brick and mortar competitors. He scoured professional photography forums, conducted interviews and focus groups, and acquired a set of lenses (and now cameras, flashes, and other photography/videography equipment) that photographers would rent. ![]() To create value, Max first acquired the lenses that professional photographers actually demand. Operating Model and its alignment with the Business Model The company differentiates itself from the competition by delivering lenses to the customer’s door without requiring the hassle of deposits and with the service of a professional staff. Pathways to Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activistsī’s business model is to own a wide variety of photography tools and rent them to customers on a daily, weekly, or monthly basis. Existing rental establishments had unpredictable inventory availability (and what inventory they did have was rarely aligned with what consumers actually demanded), required customers to make sizable deposits, and required picking up and dropping off of rented equipment. Given the wide variety of lenses available that are often only useful for certain projects photographers have struggled to justify the cost of expensive specialty lenses for only one assignment. Professional photographers are typically self-employed and the equipment required for their profession can often be worth over $50,000. is a successful start-up (recently acquired by Shutterfly) that rents photography equipment to hobbyists and professionals online.ī was created when the founder, Max Shvyakov, realized that there was a high level of demand by professional photographers to rent instead of buy expensive (often upwards of $10,000 each) lenses for professional assignments but there was no satisfactory place to rent from.
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