Day: March 8, 2019

Tesla called out for sneaky math on Model 3 pricing

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Just like when Germany wasn’t too pleased with Tesla’s naming choice for its semi-autonomous feature (confusingly called Autopilot), the country’s automotive industry group is calling out the American electric vehicle company for misleading pricing online for the Model 3 sedan.

This week Reuters reported that the Wettbewerbszentrale nonprofit association that oversees fairness in the auto industry asked Tesla to include the full price of the car and remove the price based on gas savings and tax incentives and rebates. 

Tesla appears to have already reversed course ahead of the March 20 deadline for the change. Accessing the Model 3 website through a VPN set to a location in Germany Friday afternoon, the full price before savings is listed, with no mention of estimated savings on the bottom bar or elsewhere. Read more…

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Which types of startups are most often profitable?

Julian Shapiro
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Julian Shapiro is the founder of BellCurve.com, a growth marketing agency that trains you to become a marketing professional. He also writes at Julian.com.
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I co-run an agency that teaches a hundred startups per year how to do growth marketing. This gives me a unique vantage point: I know which types of startups most often reach profitability.

That’s an important metric, because startups that don’t reach this milestone typically fail to raise additional funding — then die.

Here’s what we’ll learn:

  1. Companies are increasingly living and dying by ads. Because it’s the startup’s approach to customer acquisition — not its business model or market — that most determines its early-stage profitability.
  2. E-commerce companies lend themselves best to ads, and SMB SaaS the worst. Meanwhile, most startup founders in 2019 are starting SaaS companies. They’d benefit from the data we share in this post.
  3. In fact, our agency has found that every other type of business reaches profitability quicker than SMB SaaS, including mobile apps, Chrome extensions and enterprise SaaS.

Our sampling of startups isn’t as biased as startup valuation leaderboards, because we also see those that failed. That’s the key.

You can use our experience to de-risk your startup. That’s what this post explores: How to change your product roadmap to pursue a path more likely to reach profitability.

The startups that frequently reach profitability

Here’s the data my agency is referencing for this post:

  • We train 12+ venture-backed and bootstrapped startups every month. Half are Y Combinator graduates. This is how we study early-stage product-market fit trends.
  • We run ads full-time for between 20 and 30 mature companies per year. On average, each spends $2.5 million annually on paid acquisition. And, on average, each has 30 employees. Our clients include Tovala.com, PerfectKeto.com, SPYSCAPE.com, ImperfectProduce.com, Clearbit.com and Woodpath.com.
  • Our students and clients are roughly evenly distributed across D2C e-commerce, B2B, mobile apps and marketplaces.

When we try to control for founder skill and funds raised, the types of startups that first reach profitability do so in this order:

  1. E-commerce
  2. Chrome extensions
  3. Mobile apps
  4. Enterprise SaaS
  5. Small-to-medium business SaaS

On average, an e-commerce company is more likely to first reach profitability than an SMB SaaS company.

Before I explain why, let me explain how we’re differentiating startups: I use the word “type” instead of “business model” or “markets” because I’ve learned that business model and market are often not the best predictors of success. Instead, it’s your approach to customer acquisition. That’s what typically determines the likelihood of profitability.

Rejoice: You can finally buy the Samsung Galaxy Watch Active

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Samsung’s recent announcement of their brand-new Galaxy Watch Active smartwatch had us all salivating. 

Well the good news is that the wait is officially over and the Galaxy Watch Active is here. Just look at how gorgeous this smartwatch is:

Samsung finally has a watch that looks good on small wrists.

Samsung finally has a watch that looks good on small wrists.

Image: Karissa Bell / Mashable

The Galaxy Watch Active is more subtle than Samsung’s previous Galaxy Watches, and focuses more on health and fitness-related functions — more akin to the Apple Watch’s health apps. From blood-pressure monitoring to guided breathing, this watch has some really cool features. Read more…

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Leica’s Q2 is a beautiful camera that I want and will never have

Leica is a brand I respect and appreciate but don’t support. Or rather, can’t, because I’m not fabulously rich. But if I did have $5,000 to spend on a fixed-lens camera, I’d probably get the new Q2, a significant improvement over 2015’s Q — which tempted me back then.

The Q2 keeps much of what made the Q great: a full-frame sensor, a fabulous 28mm F/1.7 Summilux lens, and straightforward operation focused on getting the shot. But it also makes some major changes that make the Q2 a far more competitive camera.

The sensor has jumped from 24 to 47 megapixels, and while we’re well out of the megapixel race, that creates the opportunity for a very useful cropped shooting mode that lets you shoot at 35, 50, and 75mm equivalents while still capturing huge pixel counts. It keeps the full frame exposure as well so you can tweak the crop later. The new sensor also has a super low native ISO of 50, which should help with dynamic range and in certain exposure conditions.

Autofocus has been redone as well (as you might expect with a new sensor) and it should be quicker and more accurate now. Ther’s also an optical stabilization mode that kicks in when you are shooting at under 1/60s. Both features that need a little testing to verify they’re as good as they sound, but I don’t expect they’re fraudulent or anything.

The body, already a handsome minimal design in keeping with Leica’s impeccable (if expensive) taste, is now weather sealed, making this a viable walk-around camera in all conditions. Imagine paying five grand for a camera and being afraid to take it out in the rain! Well, many people did that and perhaps will feel foolish now that the Q2 has arrived.

Inside is an electronic viewfinder, but the 2015 Q had a sequential-field display — meaning it flashes rapidly through the red, green, and blue components of the image — which made it prone to color artifacts in high-motion scenes or when panning. The Q2, however, has a shiny new OLED display with the same resolution but better performance. OLEDs are great for EVFs for a lot of reasons, but I like that you get really nice blacks, like in an optical viewfinder.

The button layout has been simplified as well (or rather synchronized with the CL, another Leica model), with a new customizable button on the top plate, reflecting the trend of personalization we’ve seen in high-end cameras. A considerably larger battery and redesigned battery and card door rounds out the new features.

As DPReview points out in its hands-on preview of the camera, the Q2 is significantly heavier than the high-end fixed-lens competition (namely the Sony RX1R II and Fuji X100F, both excellent cameras), and also significantly more expensive. But unlike many Leica offerings, it actually outperforms them in important ways: the lens, the weather sealing, the burst speed — it may be expensive, but you actually get something for your money. That can’t always be said of this brand.

The Leica Q2 typifies the type of camera I’d like to own: no real accessories, nothing to swap in or out, great image quality and straightforward operation. I’m far more likely to get an X100F (and even then it’d be a huge splurge) but all that time I’ll be looking at the Q2 with envious eyes. Maybe I’ll get to touch one some day.