Wednesday, 1 July 2015
Flavourly would need to hire Bob Beaman to jump this gap.
We promised to report on Flavourly Ltd when they finally filed accounts. YE 08/14 shows a loss of £75k. Projections - not date aligned as usual, show profits somewhere between £360k and £1m - some gap.
Flavourly first raised money on Angels Den, then latterly more on Crowdcube - having claimed the Angels Den raise would be the only one......heard that one before here. Its a simple aggressive customer subscription model - so why isn't it working? We suspect that the over use of cheap deals via sites like Groupon maybe the answer. Gaining customers by offering them a virtually free deal with no commitment is not necessarily going to lead to customer retention - see our piece on Cornerstone. It can prove an expensive mistake as bargain hunters use the system and then cancel their subscription. Flavourly openly applauded their own Groupon Christmas 2013 campaign.
Customer service may also be problem - scaling up an operation like this requires skill and experience - customer reviews continue to suggest Flavourly have neither.
Graze it is not.