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Deep Dive Research About a Collaborative Work Management Company Poised to Benefit off the Remote Work Trend. NYSE Listed.

TL:DR is at the bottom
Hello, welcome to my second deep dive write up.
My name’s Mark and I’m an accountant with a passion for investing. About two years ago, I used to work as an auditor at a public accounting firm and have been behind the scenes at many different publicly traded and privately held companies in the U.S. My goal is to bring my unique perspective from that past experience, my current experience working in a new role at a large corporation, and my understanding of accounting to help break down some of the most exciting growth stocks on the market today.
I’m a long-term investor. I am focused on finding great companies and holding them for a long time. I’m willing to endure volatility, crazy price drops, and everything that comes with this approach as long as the facts that led me to originally invest and believe in that company have not changed. If you want to learn more about this approach. I recommend reading the book “100 Baggers” by Chris Mayer.
Introduction
I’m excited to share with you all my stock pick for this month, Smartsheet. I’m always looking for investment ideas. I run stock screeners with different criteria (mostly focused on revenue growth), scan Twitter, talk to professionals in different industries, and try to observe what products or services are getting popular with my friends and family. One of the best investment decisions I’ve made to date came after I talked to my friend about a drink he was drinking on the golf course. Shout out to you Celsius (CELH)! With that being said, you never know where your next good investment idea is going to come from.
In the case of Smartsheet, I became aware of the company through a stock screener. I was drawn to the relatively small market cap ($8.6B), strong revenue growth (roughly 35%), and the fact that it’s a subscription business model (SaaS). Once I became aware of these facts, it cued me to take a deeper dive. The more I learned about Smartsheet, the more I liked. Management talks a lot about empowering people and that really struck a chord with me. In different roles I’ve had as a teacher, tutor, and supervisor, I’ve always found empowering people to be one of the most important keys to success. I will touch on this more later in the write up.
Another positive signal I got about Smartsheet came unexpectedly one evening. I was sitting in the kitchen and my girlfriend was cooking dinner. I was watching an interview on my phone with Mark Mader, the CEO of Smartsheet. My girlfriend overheard the word “Smartsheet” mentioned in the video and said “Are they talking about the Smartsheet with the blue check mark?”. I had to Google their logo but yes, it turns out we were thinking about the same Smartsheet. I asked her how she knew about it. She said “My company just transitioned all of our work onto Smartsheet. I really love it. Our marketing department is really excited about it because it makes their job way easier and more enjoyable.” Hearing this just motivated me to learn more about Smartsheet.
The Thesis Statement
For every stock pick I make, I want to provide a quick thesis statement that can serve as a reminder for why I’m buying and holding that stock for the long term. I’ll always aim to make it just a few sentences long so it can easily be remembered and internalized. This helps during times when the price may sporadically drop and you need to remember why you’re holding this position.
The thesis statement I have come up with for Smartsheet is as follows:
“Smartsheet: A leader in collaborative work management (CWM) software. As the global workforce becomes more decentralized through remote work, managers and executives now more than ever need a tool to digitally consolidate their teams, projects and deadlines. Smartsheet is that tool and is innovating to offer businesses even more ways to get the most out of their teams.”
I think this thesis statement really captures the essence of what Smartsheet does. If you go to Smartsheet’s website and look at the “About” page, you will find their “About” statement which says “Smartsheet is the enterprise platform for dynamic work that aligns people and technology so your entire business can move faster, drive innovation, and achieve more.” Notice how their statement emphasizes helping businesses move faster, drive innovation, and achieve more.
In my thesis statement, I mention that Smartsheet is a leader in the CWM software space. But how do I know this? Well, a highly reputable independent research firm named Forrester conducted a study on the CWM space based off different criteria including collaboration, enterprise capabilities, UI/user experience, planned enhancements and number of customers just to name a few of the factors considered. I put the companies that were identified from the study in the order of their ranking below. As you can see, Smartsheet is firmly planted as a leader in the space at 2nd place. Let’s use our common sense for a second. At the beginning stages of a remote work revolution, do we want to invest in an up and coming SaaS company that focuses on providing firms with resources to digitally manage their teams, digitally manage work/projects, and digitally collaborate to get work done? I think the answer should be a resounding yes. But what about these other companies on the list. Let’s break them down 1 by 1:
Now that we’ve established that Smartsheet is a leader in the CWM space and that they’re arguably the best publicly available pure-play investment in this space let’s understand why this is important. Other than the obvious reason that we’re in the beginning stages of a remote work revolution, why is this important?
Well, let’s take a look at this quote from Mark Mader, Smartsheet CEO, during the last earnings call (Q3 FY21) that occurred on December 7th, 2020:
“Leaders are recognizing they need to shift more workloads to asynchronous work, work that is documented, automated, tracked with dashboards, and where priorities are clearly defined. They understand that by empowering their teams with no-code solutions that facilitate asynchronous work, cycle times will be improved, a deeper sense of ownership will be created, and prioritization and accountability will be insured. Smartsheet is ideally suited to help enterprises work more asynchronously to derive the benefits from doing so.”
Key word here: Asynchronous. Asynchronous communication is different from Synchronous communication. Here is the difference:
Asynchronous: email, message boards, dashboards, etc.
Synchronous: video conferencing, chat, audio calls, etc.
Any communication that doesn’t require a real-time response can be considered asynchronous, like the examples in the picture above. Synchronous communication is any communication that happens in real time, thereby allowing for immediate responses, see examples above. As part of my research on Smartsheet, I read an E-Book that was written by the original co-founders of Smartsheet, Mark Mader the current CEO and Brent Frei who is no longer with the company. They wrote the E-Book in 2007 just a couple of years after the 2005 founding. The E-Book is called “The Power of Done”. The moral of the book is that Mark and Brent noticed through their own experience, and through different research studies on work place productivity, that the rise in technology in the early 21st century was actually making employees less productive. This is a quote from their E-Book:
“According to Basex, a research firm focusing on the knowledge economy, interruptions from email, cell phones, instant messaging, text messaging and blogs eat up nearly 30 percent of each day; on an annualized basis, this represents a loss of 28 billion hours for the entire U.S. workforce, or a $588 billion cost to the American economy.”
They mention in their book that although there has been a lot of advances in work technology such as email, word processing, and spreadsheets, there hadn’t at that time been any great applications created for teamwork collaboration or task management. The fact that technology advances helped the world create tools to enhance productivity but also deterred productivity at the same time is what Mark and Brent referred to as the productivity paradox. They wanted to do something about it and thus they founded Smartsheet.
How Smartsheet makes money
At the very least, before you invest in a company, you better understand how they make money. In Chris Mayers’ excellent book, 100 Baggers, that I mentioned above, he continually references top line revenue growth as one of the main common indicators of a possible 100 Bagger. This isn’t to tell you that any stock I pick will be a 100 Bagger just because it has great top line revenue growth, but if I am looking at a growth stock to hold for the long term, revenue growth is one of the first things I look at.
Before I talk about the revenue streams of Smartsheet, I want to share a little bit about the actual product that they sell to earn this revenue. Co-FoundeCEO Mark Mader realized that a lot of work in the corporate world was being done on spreadsheets such as Microsoft Excel. However, he realized that these spreadsheets were largely static and not necessarily used to their full potential. He wanted to help people get more out of their use of spreadsheets. As a result, we now have Smartsheets which is a cloud based platform that can be accessed by all employees of the company no matter where they are with live information about project statuses, meeting times and work that is assigned to each employee just to name a few uses. Users can choose their way of viewing this information with different views such as calendar view, grid view, card view, and Gantt view.
The idea is that by enhancing the availability and quality of asynchronous information available to all members of a team about the status of a project, the tasks assigned, and the timelines, the less synchronous communication will be needed which allows employees to spend more time doing what they’re hired to do – get work done. Think about how wasteful it is to hire a highly talented engineer but then make him spend half his day preparing for and doing status update meetings and hunting people down to see where they’re at with their assignments. What if all this information was available for him, his managers, and his staff to see within Smartsheet without having to bother each other and waste precious work hours that could be used for coding, designing, and producing? That’s what Smartsheet looks to achieve.
For Smartsheet, their means of making money is quite simple. As I mentioned earlier, they are a Software as a Service (SaaS) company. Whenever you see SaaS, that means subscription revenue and in my opinion that’s a very good thing. With a subscription business model, the revenue is going to be recurring every year and that type of reliability (combined with growth of course) is something you want as an investor.
Smartsheet’s primary source of revenue is the sale of subscriptions to their cloud-based Collaborative Work Management (CWM) platform. Customers and potential customers begin their engagement with the Smartsheet platform by either signing up for a free trial, purchasing a subscription on the Smartsheet website, going through a sales rep, or they are exposed to Smartsheet by collaborating with a Company/Individual that uses Smartsheet. For subscriptions, customers select the plan that meets their needs and can begin using Smartsheet within minutes.
Smartsheet offers four subscription levels: Individual, Business, Enterprise, and Premier, the pricing for which varies by the capabilities provided. Customers can also purchase connectors, which provide data integration and automation to third-party applications.
The Connectors part of the business is something I find really interesting. Basically, Smartsheet has made deals with most of the top work productivity and communication software companies in the world to allow their customers to use those applications within their Smartsheet user interface. This helps position Smartsheet as the true “command center” platform while the products of the other companies become ancillary pieces. You’ll see this on the link above but some products that Smartsheet sells Connectors for include Adobe Creative Cloud, Microsoft Dynamics 365, Salesforce, Jira Software, Slack, and Skype just to name a few.
I think that being able to sell these Connectors as ancillary pieces to the Smartsheet user experience is so beneficial to Smartsheet because a lot of these companies that people may perceive as “Smartsheet competitors” actually become a piece of the Smartsheet platform and can be sold by Smartsheet as a supplemental revenue stream. This neutral angle that Smartsheet is able to come from by selling Connectors to their perceived “competitors” reminds me a little bit of how Roku (ROKU) is able to earn revenue off of selling a Netflix subscription on their platform. I think just the fact that all these big companies like Adobe, Jira, Salesforce, etc. allow their products to be integrated into Smartsheet shows that there is a high value proposition in the Smartsheet platform and that they would risk alienating their customers if they didn’t allow for their products to be integrated with Smartsheet.
On top of the Connectors to third party vendors that Smartsheet is able to sell, Smartsheet is also able to sell upgrades to their own internal plug-ins. Smartsheet has some impressive proprietary plug-ins they can sell to their customers. For example, in May 2019, Smartsheet acquired 10,000ft which augmented their product portfolio by providing resource allocation and planning. The name “10,000ft” is meant to be analogous to having a high level view of your company and all resources available within your company and how to deploy them.
Also, in September 2020, Smartsheet acquired Brandfolder, Inc. which provides a centralized platform to organize, discover, control, distribute, and measure all forms of digital content. Combining Brandfolder capabilities with Smartsheet allows them to create dynamic solutions that manage workflows around content and collaboration. This goes back to what I said earlier in the article about how my girlfriend had mentioned that her company’s marketing team was “really excited about Smartsheet because it makes their job way easier and more enjoyable.” She told me that before Smartsheet, her company’s marketing team had to constantly hunt down members of the creative team (photographers, graphic designers) to receive the latest photos, videos, and digital designs they were working on. She said it was a big pain for them trying to share this content over email and SharePoint. Now, all of the content is inside of Smartsheet and the marketing team can access it at any time. They can leave comments on the content, route to appropriate individuals for approvals, and have better insight into the status of all digital content that is being worked on. The acquisition of Brandfolder is really what allows Smartsheet to stand out in this department.
Nobody really talks about it, but digital content is so important these days for companies in terms of controlling their brand image, putting out quality advertisements, and presenting their product in as positive of a light as possible. The fact that Smartsheet has a strong proprietary plug-in for this with Brandfolder is very promising. During Smartsheet’s FY21 Engage Customer Conference, Anna Griffin, Smartsheet Chief Marketing Officer said that the global annual marketing spend is $500B for companies around the world. She said the role of the marketing department is changing from sole content creator to Editor in Chief. All kinds of teams within companies these days are putting out content that effects the company’s brand. Sales is running social media campaigns, product marketing is putting out blog posts and podcasts, and R&D is teasing new product experiences in app. It can get really difficult for the company’s Marketing/Branding team to stay on top of all this without a centralized digital content collaboration platform like Brandfolder in Smartsheet. This is just one reason why I think Smartsheet has a lot of growth opportunities in the future.
As you can see, Smartsheet has a lot to offer to companies with their core CWM platform, the Connectors they can sell, and the internal upgrades available such as 10,000ft and Brandfolder. On top of that, Smartsheet also provides WorkApps, a proprietary no-code platform that empowers users to build intuitive web and mobile applications that streamline business and simplify collaboration. There are so many instances within companies where an app needs to be built to streamline a workflow. Traditionally, companies need to engage their IT departments and the coders that sit within these departments to build these apps. This places a lot of strain on IT departments and takes away time they can be spending on more complex/mission critical projects. Mark Mader is aware of this and thus is heavily pushing no-code as a solution for companies now and in the future. He believes that everyday non-coder employees know their jobs/workflows best and thus if you empower them to build their own apps with a no-code platform they will produce better and more relevant apps to help get work done than an IT department employee who doesn’t even do the job that the app is being built for. Also, he believes this will reduce strain on IT departments and allow them to focus on more complex and mission critical projects.
Here is a quote from the Director of Sales (Hina Patel) at a Smartsheet customer, Cisco (NASDAQ: CSCO): “I have been waiting for a solution like WorkApps that can give us quick and easy access to the content we need, when and where we need it,” said Hina Patel, Director of Sales Operations at Cisco. “The ability to take our Smartsheet assets, along with other tools we use, and package an entire solution in an intuitive app will make it even easier to drive active participation from everyone involved in the process, no matter their role.” As you can see, the value proposition of WorkApps and the Smartsheet platform appears to be high.
Lastly, Smartsheet also generates revenue from Professional Services which is essentially providing training and customized consulting to Smartsheet customers that want to get more out of the Smartsheet platform. In the most recent quarter, Q3 FY21, Professional Services accounted for 8.2% of revenue. Here is the breakout from the most recent quarter:
Subscription revenue = $90,890M for 91.8% of total revenue
Professional services revenue = $8,043M for 8.2% of total revenue
This is the end of my first article about Smartsheet. My goal is to drop Part 2 within the next week. The focus of Part 2 will be an in depth answer of the question – “Can we 10x from here?”
TL:DR
Disclosure: I have no position in Smartsheet. I do plan to initiate a long position when the markets open again in 2021. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
submitted by Historical-Comment36 to SecurityAnalysis [link] [comments]

Smartsheet (NYSE: SMAR) – Deep Dive Research – Part 1

TL:DR is at the bottom
Hello, welcome to my second deep dive write up.
My name’s Mark and I’m an accountant with a passion for investing. About two years ago, I used to work as an auditor at a public accounting firm and have been behind the scenes at many different publicly traded and privately held companies in the U.S. My goal is to bring my unique perspective from that past experience, my current experience working in a new role at a large corporation, and my understanding of accounting to help break down some of the most exciting growth stocks on the market today.
I’m a long-term investor. I am focused on finding great companies and holding them for a long time. I’m willing to endure volatility, crazy price drops, and everything that comes with this approach as long as the facts that led me to originally invest and believe in that company have not changed. If you want to learn more about this approach. I recommend reading the book “100 Baggers” by Chris Mayer.
Introduction
I’m excited to share with you all my stock pick for this month, Smartsheet. I’m always looking for investment ideas. I run stock screeners with different criteria (mostly focused on revenue growth), scan Twitter, talk to professionals in different industries, and try to observe what products or services are getting popular with my friends and family. One of the best investment decisions I’ve made to date came after I talked to my friend about a drink he was drinking on the golf course. Shout out to you Celsius (CELH)! With that being said, you never know where your next good investment idea is going to come from.
In the case of Smartsheet, I became aware of the company through a stock screener. I was drawn to the relatively small market cap ($8.6B), strong revenue growth (roughly 35%), and the fact that it’s a subscription business model (SaaS). Once I became aware of these facts, it cued me to take a deeper dive. The more I learned about Smartsheet, the more I liked. Management talks a lot about empowering people and that really struck a chord with me. In different roles I’ve had as a teacher, tutor, and supervisor, I’ve always found empowering people to be one of the most important keys to success. I will touch on this more later in the write up.
Another positive signal I got about Smartsheet came unexpectedly one evening. I was sitting in the kitchen and my girlfriend was cooking dinner. I was watching an interview on my phone with Mark Mader, the CEO of Smartsheet. My girlfriend overheard the word “Smartsheet” mentioned in the video and said “Are they talking about the Smartsheet with the blue check mark?”. I had to Google their logo but yes, it turns out we were thinking about the same Smartsheet. I asked her how she knew about it. She said “My company just transitioned all of our work onto Smartsheet. I really love it. Our marketing department is really excited about it because it makes their job way easier and more enjoyable.” Hearing this just motivated me to learn more about Smartsheet.
The Thesis Statement
For every stock pick I make, I want to provide a quick thesis statement that can serve as a reminder for why I’m buying and holding that stock for the long term. I’ll always aim to make it just a few sentences long so it can easily be remembered and internalized. This helps during times when the price may sporadically drop and you need to remember why you’re holding this position.
The thesis statement I have come up with for Smartsheet is as follows:
“Smartsheet: A leader in collaborative work management (CWM) software. As the global workforce becomes more decentralized through remote work, managers and executives now more than ever need a tool to digitally consolidate their teams, projects and deadlines. Smartsheet is that tool and is innovating to offer businesses even more ways to get the most out of their teams.”
I think this thesis statement really captures the essence of what Smartsheet does. If you go to Smartsheet’s website and look at the “About” page, you will find their “About” statement which says “Smartsheet is the enterprise platform for dynamic work that aligns people and technology so your entire business can move faster, drive innovation, and achieve more.” Notice how their statement emphasizes helping businesses move faster, drive innovation, and achieve more.
In my thesis statement, I mention that Smartsheet is a leader in the CWM software space. But how do I know this? Well, a highly reputable independent research firm named Forrester conducted a study on the CWM space based off different criteria including collaboration, enterprise capabilities, UI/user experience, planned enhancements and number of customers just to name a few of the factors considered. I put the companies that were identified from the study in the order of their ranking below. As you can see, Smartsheet is firmly planted as a leader in the space at 2nd place. Let’s use our common sense for a second. At the beginning stages of a remote work revolution, do we want to invest in an up and coming SaaS company that focuses on providing firms with resources to digitally manage their teams, digitally manage work/projects, and digitally collaborate to get work done? I think the answer should be a resounding yes. But what about these other companies on the list. Let’s break them down 1 by 1:
Now that we’ve established that Smartsheet is a leader in the CWM space and that they’re arguably the best publicly available pure-play investment in this space let’s understand why this is important. Other than the obvious reason that we’re in the beginning stages of a remote work revolution, why is this important?
Well, let’s take a look at this quote from Mark Mader, Smartsheet CEO, during the last earnings call (Q3 FY21) that occurred on December 7th, 2020:
“Leaders are recognizing they need to shift more workloads to asynchronous work, work that is documented, automated, tracked with dashboards, and where priorities are clearly defined. They understand that by empowering their teams with no-code solutions that facilitate asynchronous work, cycle times will be improved, a deeper sense of ownership will be created, and prioritization and accountability will be insured. Smartsheet is ideally suited to help enterprises work more asynchronously to derive the benefits from doing so.”
Key word here: Asynchronous. Asynchronous communication is different from Synchronous communication. Here is the difference:
Asynchronous: email, message boards, dashboards, etc.
Synchronous: video conferencing, chat, audio calls, etc.
Any communication that doesn’t require a real-time response can be considered asynchronous, like the examples in the picture above. Synchronous communication is any communication that happens in real time, thereby allowing for immediate responses, see examples above. As part of my research on Smartsheet, I read an E-Book that was written by the original co-founders of Smartsheet, Mark Mader the current CEO and Brent Frei who is no longer with the company. They wrote the E-Book in 2007 just a couple of years after the 2005 founding. The E-Book is called “The Power of Done”. The moral of the book is that Mark and Brent noticed through their own experience, and through different research studies on work place productivity, that the rise in technology in the early 21st century was actually making employees less productive. This is a quote from their E-Book:
“According to Basex, a research firm focusing on the knowledge economy, interruptions from email, cell phones, instant messaging, text messaging and blogs eat up nearly 30 percent of each day; on an annualized basis, this represents a loss of 28 billion hours for the entire U.S. workforce, or a $588 billion cost to the American economy.”
They mention in their book that although there has been a lot of advances in work technology such as email, word processing, and spreadsheets, there hadn’t at that time been any great applications created for teamwork collaboration or task management. The fact that technology advances helped the world create tools to enhance productivity but also deterred productivity at the same time is what Mark and Brent referred to as the productivity paradox. They wanted to do something about it and thus they founded Smartsheet.
How Smartsheet makes money
At the very least, before you invest in a company, you better understand how they make money. In Chris Mayers’ excellent book, 100 Baggers, that I mentioned above, he continually references top line revenue growth as one of the main common indicators of a possible 100 Bagger. This isn’t to tell you that any stock I pick will be a 100 Bagger just because it has great top line revenue growth, but if I am looking at a growth stock to hold for the long term, revenue growth is one of the first things I look at.
Before I talk about the revenue streams of Smartsheet, I want to share a little bit about the actual product that they sell to earn this revenue. Co-FoundeCEO Mark Mader realized that a lot of work in the corporate world was being done on spreadsheets such as Microsoft Excel. However, he realized that these spreadsheets were largely static and not necessarily used to their full potential. He wanted to help people get more out of their use of spreadsheets. As a result, we now have Smartsheets which is a cloud based platform that can be accessed by all employees of the company no matter where they are with live information about project statuses, meeting times and work that is assigned to each employee just to name a few uses. Users can choose their way of viewing this information with different views such as calendar view, grid view, card view, and Gantt view.
The idea is that by enhancing the availability and quality of asynchronous information available to all members of a team about the status of a project, the tasks assigned, and the timelines, the less synchronous communication will be needed which allows employees to spend more time doing what they’re hired to do – get work done. Think about how wasteful it is to hire a highly talented engineer but then make him spend half his day preparing for and doing status update meetings and hunting people down to see where they’re at with their assignments. What if all this information was available for him, his managers, and his staff to see within Smartsheet without having to bother each other and waste precious work hours that could be used for coding, designing, and producing? That’s what Smartsheet looks to achieve.
For Smartsheet, their means of making money is quite simple. As I mentioned earlier, they are a Software as a Service (SaaS) company. Whenever you see SaaS, that means subscription revenue and in my opinion that’s a very good thing. With a subscription business model, the revenue is going to be recurring every year and that type of reliability (combined with growth of course) is something you want as an investor.
Smartsheet’s primary source of revenue is the sale of subscriptions to their cloud-based Collaborative Work Management (CWM) platform. Customers and potential customers begin their engagement with the Smartsheet platform by either signing up for a free trial, purchasing a subscription on the Smartsheet website, going through a sales rep, or they are exposed to Smartsheet by collaborating with a Company/Individual that uses Smartsheet. For subscriptions, customers select the plan that meets their needs and can begin using Smartsheet within minutes.
Smartsheet offers four subscription levels: Individual, Business, Enterprise, and Premier, the pricing for which varies by the capabilities provided. Customers can also purchase connectors, which provide data integration and automation to third-party applications.
The Connectors part of the business is something I find really interesting. Basically, Smartsheet has made deals with most of the top work productivity and communication software companies in the world to allow their customers to use those applications within their Smartsheet user interface. This helps position Smartsheet as the true “command center” platform while the products of the other companies become ancillary pieces. You’ll see this on the link above but some products that Smartsheet sells Connectors for include Adobe Creative Cloud, Microsoft Dynamics 365, Salesforce, Jira Software, Slack, and Skype just to name a few.
I think that being able to sell these Connectors as ancillary pieces to the Smartsheet user experience is so beneficial to Smartsheet because a lot of these companies that people may perceive as “Smartsheet competitors” actually become a piece of the Smartsheet platform and can be sold by Smartsheet as a supplemental revenue stream. This neutral angle that Smartsheet is able to come from by selling Connectors to their perceived “competitors” reminds me a little bit of how Roku (ROKU) is able to earn revenue off of selling a Netflix subscription on their platform. I think just the fact that all these big companies like Adobe, Jira, Salesforce, etc. allow their products to be integrated into Smartsheet shows that there is a high value proposition in the Smartsheet platform and that they would risk alienating their customers if they didn’t allow for their products to be integrated with Smartsheet.
On top of the Connectors to third party vendors that Smartsheet is able to sell, Smartsheet is also able to sell upgrades to their own internal plug-ins. Smartsheet has some impressive proprietary plug-ins they can sell to their customers. For example, in May 2019, Smartsheet acquired 10,000ft which augmented their product portfolio by providing resource allocation and planning. The name “10,000ft” is meant to be analogous to having a high level view of your company and all resources available within your company and how to deploy them.
Also, in September 2020, Smartsheet acquired Brandfolder, Inc. which provides a centralized platform to organize, discover, control, distribute, and measure all forms of digital content. Combining Brandfolder capabilities with Smartsheet allows them to create dynamic solutions that manage workflows around content and collaboration. This goes back to what I said earlier in the article about how my girlfriend had mentioned that her company’s marketing team was “really excited about Smartsheet because it makes their job way easier and more enjoyable.” She told me that before Smartsheet, her company’s marketing team had to constantly hunt down members of the creative team (photographers, graphic designers) to receive the latest photos, videos, and digital designs they were working on. She said it was a big pain for them trying to share this content over email and SharePoint. Now, all of the content is inside of Smartsheet and the marketing team can access it at any time. They can leave comments on the content, route to appropriate individuals for approvals, and have better insight into the status of all digital content that is being worked on. The acquisition of Brandfolder is really what allows Smartsheet to stand out in this department.
Nobody really talks about it, but digital content is so important these days for companies in terms of controlling their brand image, putting out quality advertisements, and presenting their product in as positive of a light as possible. The fact that Smartsheet has a strong proprietary plug-in for this with Brandfolder is very promising. During Smartsheet’s FY21 Engage Customer Conference, Anna Griffin, Smartsheet Chief Marketing Officer said that the global annual marketing spend is $500B for companies around the world. She said the role of the marketing department is changing from sole content creator to Editor in Chief. All kinds of teams within companies these days are putting out content that effects the company’s brand. Sales is running social media campaigns, product marketing is putting out blog posts and podcasts, and R&D is teasing new product experiences in app. It can get really difficult for the company’s Marketing/Branding team to stay on top of all this without a centralized digital content collaboration platform like Brandfolder in Smartsheet. This is just one reason why I think Smartsheet has a lot of growth opportunities in the future.
As you can see, Smartsheet has a lot to offer to companies with their core CWM platform, the Connectors they can sell, and the internal upgrades available such as 10,000ft and Brandfolder. On top of that, Smartsheet also provides WorkApps, a proprietary no-code platform that empowers users to build intuitive web and mobile applications that streamline business and simplify collaboration. There are so many instances within companies where an app needs to be built to streamline a workflow. Traditionally, companies need to engage their IT departments and the coders that sit within these departments to build these apps. This places a lot of strain on IT departments and takes away time they can be spending on more complex/mission critical projects. Mark Mader is aware of this and thus is heavily pushing no-code as a solution for companies now and in the future. He believes that everyday non-coder employees know their jobs/workflows best and thus if you empower them to build their own apps with a no-code platform they will produce better and more relevant apps to help get work done than an IT department employee who doesn’t even do the job that the app is being built for. Also, he believes this will reduce strain on IT departments and allow them to focus on more complex and mission critical projects.
Here is a quote from the Director of Sales (Hina Patel) at a Smartsheet customer, Cisco (NASDAQ: CSCO): “I have been waiting for a solution like WorkApps that can give us quick and easy access to the content we need, when and where we need it,” said Hina Patel, Director of Sales Operations at Cisco. “The ability to take our Smartsheet assets, along with other tools we use, and package an entire solution in an intuitive app will make it even easier to drive active participation from everyone involved in the process, no matter their role.” As you can see, the value proposition of WorkApps and the Smartsheet platform appears to be high.
Lastly, Smartsheet also generates revenue from Professional Services which is essentially providing training and customized consulting to Smartsheet customers that want to get more out of the Smartsheet platform. In the most recent quarter, Q3 FY21, Professional Services accounted for 8.2% of revenue. Here is the breakout from the most recent quarter:
Subscription revenue = $90,890M for 91.8% of total revenue
Professional services revenue = $8,043M for 8.2% of total revenue
This is the end of my first article about Smartsheet. My goal is to drop Part 2 within the next week. The focus of Part 2 will be an in depth answer of the question – “Can we 10x from here?”
TL:DR
Disclosure: I have no position in Smartsheet. I do plan to initiate a long position when the markets open again in 2021. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
submitted by Historical-Comment36 to UndervaluedStonks [link] [comments]

What's the frequency Kenneth?

I was desperate for a job.
My bank balance was giving me dirty looks. Why should it be any different?
I was living on a cash advance at 27% interest and I wasn't sure if I should go to Tijuana for 19 Coronas or take a flyer off the six story walkup in Brooklyn where I dwelt.
I was about to flip a coin when I got a LinkedIn notification on the new phone I could not afford.
This was odd because I had turned off notifications. All notifications. I just wanted some; peace. and. quiet.
The LinkedIn notification went a little something like this:
-------------------------------------------------------------------------------------------------------
Hey Kenneth. I know you'd be perfect for a once in a lifetime opportunity to help humanity and grow wealthy.
Hi Kenneth,
Hope you're doing great! But word on the street is you may not be...
Allow me to introduce myself.
My name is Korinna Klaus.
I represent a private equity backed startup that is looking for a software engineer and architect with extensive startup experience. You've been recommended to me by a mutual colleague and I have to say: I AM IMPRESSED. Your background is a perfect fit for this exclusive opportunity with my exclusive client.
Kenneth: This is not your normal startup.
We sought you because you have a reputation as an out of the box thinker who's willing to do whatever it takes to get the job done.
And since I KNOW you're a no-nonsense DOERr (sic) who tells it like it is; allow me to do the same.
Money is NO object.
Repeat. This client wants you and all you have to do is name your price. No screening. No background check. And a handsome signing bonus. I mean hey, Ken... what have you got to lose?
Due to the sensitive nature of this opportunity please call me on my direct mobile at the number below.
Yours truly,
Korinna Klaus
Head of Talent Acquisition
FFC, LLC
(Phone # redacted)
-----------------------------------------------------------------------------------------------------------------------------------------------
I looked at my dog Rudder.
He was counting on me to bring home the bacon. A roach crawled out of the sink full of dishes and empty Guinness cans.
"I've been here too long" I said to the empty room.
Wrong turn in Albuquerque
The whole thing stank like a weekend in Tijuana. I was not what you would call an expert architect or software engineer. I mean I could muddle through but I was what you call an accidental programmer. You see when I was young...
I had a Dream
FREE COMICS FOR CHRISTMAS - 1992
I was finally back in Park Slope after a seven year exile.
The momster had made good on her promise to have me out on my ass the day I turned 18. I had managed to make it through five years of SUNY, a year of law school and then when I saw my life flash before my eyes on one sunny afternoon in Camden New Jersey I knew I had to do something else with my life.
After a shitty job working for a ghoulish estate raider in the South Bronx I got a phone call with a "once in a lifetime" opportunity.
It was my Dad Herman.
The same Dad who let his retard wife slam the door in my face when the momster put me on the streets. The same Herman unit who let me sleep in a comic book store in the tenth grade for 26 days until the truant officers got involved.
"Just hear me out.
Mickey and me got the comic store right on the corner across the street from Kings Plaza. It's gonna be a gold mine. I know you're smart. I want you to run it. We can make millions!"
I had needed a job and Herman did have good weed so what the fuck; in for a penny, in for a buck.
The Big Light Bulb
A month later I was running the comic shop and one day while perusing our distributor's monthly catalogue I had a vision. What if....??
What if I started a club? What if I charged a yearly membership and gave a cool membership card. And every month my club members would order in advance from the same catalogue as the comic shops? And for a discount? Just like a comic store.
I should also add this was 1991 and comics were going through one of those Game Stop, real-estate, dotcom, tulip, comic book bubbles with 5 separate holofoil Robin #1 bullshit gimmick manufactured collectible covers guaranteed to put your kids through college; or more likely to sit in a dusty long box in your attic with all those Turok #0s with the chromium whatsis. Good times.
So I tried out my idea for a discount advance purchasing club in the comic shop and one day 25 people joined for 25 clams each. On the way home I stopped at my boy Foz's place in Chinatown and showed him the wad of cash.
"Wow dude." Foz said as he packed me a binger of the shwag.
"I wanna advertise in the whole Marvel line in November with a Christmas ad. It's twenty-five thousand clams but if we get a few thousand people to join we could make crazy jack bro!"
Skip to the important part....
After a lot of drama and ragging on his shwag Foz decided to take his last forty thousand bucks left from an inheritance of four hundred thousand pounds he blew through in just under three years.
"I'm in," he said and he was good as his word.
My father finally agreed to leave the comic shop and his retard partner Mickey and go big.
Two Months Later
I couldn't handle all the business. So we brought in all our friends from college as partners. One of them, Lou Toast, was supposed to write the software cause handling hundreds of comic book orders without computers was threatening to put me in bankruptcy before I was barely airborne.
Three Months Later: Software bug and thirty thousand dollars of orders goes POOF
Toast had a bug in the order processing program he wrote in FoxPro. Bam, just like that when our order to our distributor Heroes World was due he informed me, "Ooooh. It's all gone. I put the order in RAM and we had the blue screen of death and well, I gotta go meet Boy George."
What. The. Fuck.
True story. I told that motherfucker you sit your Boy George hardon back down in that seat and find me my comic book orders or so help me I'm gonna shove those Vienna sausages on your desk so far up your ass Boy George is gonna taste 'em backwards.
I loved Toast like a brother. And nobody cared if he was out of the closet either. But this was serious business and if I didn't get my order in we would lose our discount and take a bath and maybe the fat lady would sing before the first act was complete.
Toast and I brawled. Wren and Foz pulled me off him. I apologized. I felt awful. I told him it was wrong and I was sorry. He sat back down, did not go to presumably see Boy George and tumble for him. We all typed the orders back in the Lantastic of 386s and somehow I dodged that bullet.
However, I had a bigger problem. I needed software and I had tried everything. Hired a consultant who had created an app for the stores called, ACES. Adaptable Comic Entry System. It sucked and the dude always had an excuse; pneumonia, his mother jumped off the cloisters; name it. And here I had already paid him thousands; for nothing.
So I hatched a plan. I would lock myself in Foz' apartment in Park Slope for 3 months and learn how to program. I made a deal with Toast to stay another few months and help me take over the computers. I bought a book called Mastering FoxPro for Windows 2.5 and my descent into hell began.
Eventually I took over and was able to automate the entire business in a few years. We moved to a warehouse on Long Island and suffered through the....
COMIC WARS
The mid 90s was an ugly time for retail comics. The decade had started with almost ten thousand comic shops and scores of distributors and healthy competition. Then some yahoo at Marvel Comics decided to buy my distributor Heroes World and cut out all the other distributors from about 35% of their monthly gross.
It was a FUCKING DISASTER.
So after scraping by and falling deeper into debt year after year, unable to find financing, unable to successfully diversify I found a bankruptcy lawyer and I went belly up. I was thirty years old.
DOT COM BOOM
EARN $175 an HOUR - JAVA EXPERTS WANTED
Yep. I went from one bubble bursting straight into another. No I didn't make $175 an hour and I could never figure out Java. I found some FoxPro consulting work and for the next ten years I tried to learn it all. Visual Basic, SQL Server, ASP, ASP.NET, C#, Javascript, JQuery, NodeJS, MVC, and I kept working a year, finding myself unemployed for three to six months until I finally found an okay spot at the Bank of New York.
And then another Bubble; Sub-prime debacle.
After struggling to stay employed I finally found my spot and worked hard and by 2008 I talked them into paying me $800 a day. I was forty. I figured if I could just stay there it would be all right.
The Big Recession - All consultants must go.
Easy come, Easy go.
So.... I was out of work. Another bubble had burst. And then me and my best friend decided to launch a startup. Only I didn't know what the fuck I was doing. You see I never wanted to be a programmer. And yeah, I could program, and I could understand the deeper concepts but I could never hang with the real geniuses.
Face it Kenneth. You're just a hack.
So yeah, I created a music service just as the RIAA was successfully suing every music startup like Grooveshark right out of business. And I found myself 45, out of work, and deep in debt. Hibbity hobbity back to consulting.
Oh I could say I landed on my feet. I got a job as an architect straight away at Bank of America but three months later they did a re-org and I was told if I was in Charlotte they would have kept me. So the day before Thanksgiving they cut me loose. But my manager met me in the city to take back the laptop and buy me a pint of Guinness.
He looked me in the eye and said, "It's death by a thousand cuts."
I went to Southeast Asia on a lark for a couple of months and came back and found more work at Bank of America in Jersey City. Only the consulting company I was hired through was cut from their preferred list and my contract could not be renewed.
And then there was the 18 months at the Mossad psycho company where the owner kept talking some shit about pushing concrete barrels up a hill and I should work 18 hours a day if I was a man like him and well, it was fun watching his face melt in meetings but eventually the LSD stops working.
So I did what any other single maniac having a perpetual whole life crisis . I saw my Aunt in Tampa, drove to Fort Lauderdale to see my best friend and business partner who was just as deep in debt as I from our last venture.
We had one idea left.
A restaurant app my buddy thought up. We were going to make a developer who had worked for me at my last job as a partner and let him develop it but at the last minute his employer in Noida made him an offer he could not refuse and the kid begged off.
So I found myself in the Dominican Republic pounding away on the keyboard desperate to learn the Google Cloud, master Angular and NoSQL. You see as a programmer I am always a frustrated freshman. But when you need software and you ain't got two nickels to rub together you make do with what you got and what I had was me.
So I sat in that mold infested luxury hotel room on the beach and I began coding. Five months later I found myself in Mexico City in a run down apartment with no screens on the windows and a white female cat for company.
I had gotten tired of shooing the cat out and it kept freaking me out when I opened the bathroom door at 3am to take a piss and saw the cat sitting there like a dog its green eyes shining up to me.
One night while I was sleeping the cat put its paw on my chest and said, "they're coming for you." I was sure I dreamed it the next morning.
I drank a lot of Mexican beer, the cat always close by watching. I kept coding and then I came back to Brooklyn.
I had done it and all on my own. I had even written a business plan and created a pitch deck. I would hire a professional to polish it and then maybe, just maybe I could make good for once in my life. Get me and my partner in the black; for once. Just for variety.
NOT TO BE
And then the pandemic hit. Nobody going to restaurants. No business travelers. No nothing.
So I did what any other hard boiled shitty hack developer would do. I borrowed yet more money and kept trying to learn the latest skills. Docker containers. AWS Fargate. Azure. .NET CORE, Lambda expressions, and on and on ad nauseam. It was a curse.
And all the interviews with the endless technical questions that I spent endless time memorizing. All because of comic books? Boy George? The Napster? Who. The. Fuck. Is. Ruining. My. Life.
MEA CULPA
At a certain point you have to come to grips.
Here I was in about to exit the sunnyside of my 50s if such a thing could exist. I can't compete with the new wave of young modern developers who seem to know everything while I find myself continuously debugging and cursing and never able to compile the Microsoft sample github.
Basically I was a mess which brings us to last Thursday.
Hi Kenneth. I know you'd be perfect for a once in a lifetime opportunity to help humanity and grow wealthy
And here I am about to go belly up. I mean they keep knocking me down and I keep getting up but its been 50 years of broken home to foster care to mom to Dad to step-mother slamming the door in my face to sleeping in a comic book store in Bay Ridge and shucking rock for Joe Rockhead all the way to SUNY ghostwriting, law school drop out, comic jock, software consultant, music app wanna be, unemployed single and having to wear glasses and shave my head.
This is what is referred to as...
A Revolting Development
So I did what any other down on his luck red blooded American man would do; I called Ms. Klaus.
"Hi Kenneth!"
It was as if she was somewhere in her office looking at her watch and mumbling, "In 3, in 2 and ..." as I punched her digits.
"Hi Korinna. How are you?"
"I am FAN-FUCKING-TASTIC! Thanks for asking. But this isn't about me. This is about you Kenneth."
"Well what's your once in a lifetime offer?"
"Yes. Good. Good. Good," she said.
I said nothing which is something I wished I had learned to do long ago.
"Sure. Sure. You wanna know. Well I am going to tell you. We are running an entirely remote team launching a new technological service to a very exclusive clientele. A very bigly clientele if you catch my drift."
Did she just say, "bigly???"
"A very well heeled clientele if you know what I mean," she said and let it hang in case I wanted squeeze the Charmin.
"I'm listening," I replied.
My dog Rudder sniffed his balls and knit his eyebrows and gave me the, "I got a bad feeling on this one Dad," look I was all too familiar with.
Rudder was rarely wrong but I was rarely in a position to be choosy. I was an accidental programmer in a world I never created and each year that passed burned my ass worse than the one before.
"Kenneth. We are far along in our platform and we need a 'can-do guy'. Someone who can communicate. Tell it like it is, if you will. Are you following me?"
This was starting to sound like some government grade A bullshit.
"Well I've been working in Angular and I am okay at .NET and SQL but I still have to spend a lot of time on Google and StackOverfl-"
"Never mind that Kenneth. Tune in to what is happening here."
"Okay."
"We know about you. We know you came up hard. We know you made it through uni with high grades despite eating shrooms and acid and smoking weed incessantly. We know you were a ghostwriter. We know you witnessed a murder in Camden when you were in law school and had a breakdow-"
"OKAY!" I interjected. "I don't know what kind of bullshit scam you're running Karinna, Kristina,, or whatever the fuck your name is but yeah, you're right. We are in a fucking pandemic, I am trapped in an overpriced closet the last 20 years and I feel like a goddamned retard everytime I take a technical interview. As a matter of fact, I am probably the last person you want to lead your startup."
WHOAH. THAT DID NOT SOUND LIKE ME. I NEVER SHOWED.....
F.E.A.R.
This time it was Korinna who interjected.
"No you don't listen with your mouth Kenneth.
That's your mistake. What? You think you're special.
'Poor poor pitiful me?'
Well fucking Linda Ronstadt can't do concerts anymore and the world is fucking gone full blown Dr. Strangelove and you think being an iconoclast makes you special? Well I have news for YOU; it does! And we want to hire you. Today. Now."
I was going to tell her I had to think about it a bit.
I wanted to talk money.
But I didn't feel right. My palms were sweaty. My vision blurrier than usual. I took off my glasses and for a second I could see perfectly. Like when I was young.
It was a vision.
Like the vision I had the night when I was 5 in 1972. Right after I learned about betrayal.
They had conned me into getting my tonsils out by telling me that I could eat all the ice cream in the world I wanted. But that was bullshit because my throat was so raw that the ice cream cut like a knife but fuck YOU--Bryan Adams; it did NOT feel all right. So shove your na-na-na-NA-na-nahhhs right up your ass.
I remembered the Barbie face that materialized on my wall. Clear as day. Like an HDTV of the future. Only it was real and Barbie looked sexy AF. Only her smile changed. Pearly whites morphing into slime covered triangular gnashing machines. Eyes blood red crying tears of the same. And the laugh. It was the laugh that said you're whole world is about to change son. And you here have proof. A premonition to last your entire life. Like Sisyphus, Like Icarus... No matter how high you fly you'll always come crashing down.
The room spun. I felt the small hairs on my neck raise. I felt that Sunday night adrenaline dump hit my blood stream. Nowhere to run. Nowhere to hide. Can't fight. Can't flee. Just another Manic Monday coming your way. Just like any other day. Only you will keep losing. Endless unfulfilling meaningless to your existence. The women will see you as a compendium of check boxes on their to-do list. Over and over. The eternal return. Like Jorma's roommate Professor Manchester said, "Those olives WILL call to you in the middle of the night...."
I rubbed my eyes. I-I was crying. Blood. Rudder got up in my face and began licking it....
"Ken... Kenneth!! Tune in."
I had forgot all about the Klaus bitch. I was entering Coronaryville USA; populate; ME. WTF?!?!
My. Mother. Was. Back. And you're gonna be in trouble... Hey nah... hey nah....
It had been 35 years since I had cut bait. The bitch with the fast right hand. The hair puller. The avocado face monster who was always revoking my privileges and giving away my pets and sabotaging any shred of joy I might experience on this planet.
"I told you. You would fail. Just.Like.Your.FATHERRRRRRRR..."
My father Herman. Yeah you remember him. He who incidentally caught a heart attack and was found by my stepbrother with one hand in the air which was misinterpreted as a, "GTFO of my room," due to their OscaFelix ongoing Sanford & Son drama. Truth be told he got a little ripe there in the end.
God my fucking life flashed before my blood stained eyes. I wanted to fight.
Korinna said, "You have to hit rock bottom Ken."
And then I saw everyone ridiculing me. Ostracizing me. Bringing me to the gallows pole. I pissed my satin pajamas. The ones I had been wearing all week as my funk got industrial strength.
I. Felt.My.Mouth.Seal.Shut.
I could not speak. I could not scream.
"You don't listen with your mouth," Korinna said.
I cried harder. I wanted it to stop. It was like coming down off of all the cocaine in the universe. Mel Brooks anxiety would need a year of the endo to match the altitude of my anxiety. I wanted to die.
"If you kill Rudder it will end," Korinna said.
I saw Rudder. Lapping my face. Whining.
And then something odd happened.
It was like all the moments of clarity and enlightenment I ever experienced came together to let me see it all as an illusion. The fear. The mindless reaction. Kill me. Don't kill me. But shit or get off the pot. The audience is growing restless; trust me.
"You've got the job!" Korinna cooed.
"What?"
"Check your bank account Kenneth. Your business account. We've deposited a retainer for your first month."
I checked my bank balance.
I was bucks up. Enough to not only get me out of debt but my partner too! Almost to the penny.
I felt fear turn to relief; or was it greed?
"You felt it? Did you not?"
"What was that?" I asked.
"That Mr. Kenneth," Korinna said, "was the FEAR FREQUENCY. People are paying us a pretty penny for exclusive use of this very cutting edge technology. It makes dependency injection look like a hammer and anvil."
I ain't proud to say I took the job.
That was four months ago.
You won't believe this and I don't blame you. I don't expect you to.
I still don't. I don't even quite know what I am doing all the time.
I am monitoring three offshore teams. I believe the current state of the world has been induced or incited or catalyzed by the fear frequency.
I don't know how it is possible but after every project we complete; particularly with the team from Yerevan; the world grows a little darker and my bank account a little bigger.
I tried to resign a few days ago and the nightmares began. They gave me another raise and put me on probation. Korinna reminded me of the company's HR motto; FEAR IN-FEAR OUT
So next time you feel that free floating anxiety, the next time you start making decisions; life decisions; remember the frequency Kenneth; the fear frequency.
submitted by moishepesach to nosleep [link] [comments]

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From 9-5 jobs to landscaper to SaaS

This post briefly describes our journey from being an employee to a local lawn care business owner, then software business. If you’re a wantrepreneur, just starting out, landscaper, or SaaS owner, hope you find it applicable.
6 years ago, my SO and I (engineer and accountant) were grinding our 9-5 jobs. We knew we don’t want to be employees for the rest of our career. We realized the lack of good quality landscapers in our city (Phoenix) and decided to start a landscaping business. We had no prior landscaping experience and came up with a new way to get more lawn care clients through an instant price quote system. We calculate lawn maintenance pricing using some algorithm we developed. We built other software features to help manage our business, from booking, scheduling, invoicing to payment. It took us about a year to plan and build the software. Our local landscaping business has grown very well. We do have some client cancellations due to job loss. Our sales still went up 50% from 2019. We surpassed 28k service appointments with multiple crews focus mainly on residential yard, lawn care clients with decent margin (~20%). I made a post 6 months ago about our landscaping business (industry, operations, tips) if you want to take a look.
Some hard work from our crews:
https://imgur.com/a/iI4b4py
Sales over the years:
https://imgur.com/a/ttBb1dt

New entrepreneurs

If you’re a wantrepreneur or plan to start your business, don’t wait. You just need to start. As for ideas, you don’t need to look too far. What services, products you use frustrate you. Look up competitors’ reviews, the legit bad ones. Maybe you can offer a better solution that can delight customers and stand out from competitions. Finding an industry you’re passionate about is great. It gives you more drive but it isn’t necessary. We’re not particularly passionate about landscaping. You do need to be obsessed with customer service. Take the necessary time to research the market but don’t get delay by analysis paralysis. There’s no better way to learn the industry by doing it, making revenue. If you have a full-time job and hate it, strong suggest don’t quit yet and start a new business unless you have strong industry experience. Don’t tell your boss or coworkers you’re planning a business or doing a side hustle. It’s difficult to juggle time between your job and side business. Good time management is essential. Support from your family and friends is a plus. Some may not like your idea. Prove them wrong with your launch success. Don’t ignore your health too. You need a strong body and mind to be productive. You can only work so many 14 hours day. Eat, sleep well, exercise often. It’s good to take a vacation at least once or twice a year. What’re your tips to achieve work life balance?

Landscapers

We’ve learned a ton in the past 5 years about the landscaping industry. We run and manage the business, but we don’t do the heavy-duty work. My SO tags along often with the crew mainly to learn the trade and provide support. Phoenix summer is no joke. 110F are now typical in the summer. Few times my SO almost passed out in the field. Landscaping is hard on your body. A backpack blower weighs 20lbs. Wear it all day can’t be good for your back. Lawn mower can be hard to push if it isn’t self-propel. This is why you don’t want to work in the business. Have a system that works for you, so you don’t work in it. Job notification, service reminder, payment system, invoice generation should be automated. Hire the right people and delegate tasks you’re not good at to others.
Challenge
Managing clients and crews aren’t easy. We all have our fair share of client complaints, justified or not. Unfair bad reviews that aren’t your fault. It can ruin your day when you see one. Respond professionally. Many potential customers will read it and know who’s in the wrong. Some clients don’t pay, time away to follow up with overdue accounts. Landscaping business is quite seasonal. Luckily, Phoenix doesn’t snow, there’s plenty of work all year round. We met many local landscapers over the years. The challenge for them is not so much about doing the work, it’s how to get more clients, increase sales.
Marketing
Many use printed ads, flyers, doorhangers, thumbtack, angie’s list, homeadvisor. We rely mostly on our website, clients book online, and Google My Business (GMB) page. For most, GMB and a facebook page are what you need. Make sure both are done well. Post photos, updates regularly, encourage clients to post google reviews. Optimize your keyword on your website if you have one. Don’t use Yelp, try Nextdoor instead, we’ve been getting many referrals from Nextdoor lately. They started monetizing their platform with ads. Something to look into. Our business model focuses on residential clients. Some prefer commercial, HOA if you want larger contracts. If you go this route, you probably need to pitch to property managers, HOAs, or already have connections with them. Most commercial landscaping companies we know of have an annual run rate around $5M+. 15% net is a pretty good business. This comes at the expense of higher overhead/turnover of the crew and takes a long time to get paid. There’s also no guarantee you will get the big contract renewed so there’s some unknown factor you need to consider. Residential clients are more predictable if you have many routine maintenance clients. How’s your landscaping business doing? Any tips you’d share with us?

SaaS

About a year ago, we got a couple of FB messages from out of state landscapers. They saw our pricing website and asked how they could use something like ours. We told them we built it ourselves. They asked are we selling it. We knew our local business success largely thanks to our booking system. Get more clients, saves time, and get paid faster. This leads to the idea of making our software into a SaaS app and available to other landscapers. Maybe they can benefit from it too. We made a quick demo site and let some local landscapers try it. They all love it. Some already use similar software but it’s too complex for them with too many features they don’t need. I did some free trials on competitive products and feel the same.
Market
We looked further into the industry for home service providers software. Plenty of software solutions. 1, in particular, has raised $400M. They raised a series D round in 2018. They offer software to many contractor industries (plumber, electrician, landscapers, home cleaning, etc). This confirms there’s a market for it. Our advantage would be the instant quote system most other competitors don’t have. Our customers will have their own private label website, hosted by us, powered by the instant quote system. Their clients can book online. We started planning and development a few months ago. If our niche is successful, we’ll expand to other industries compete head on with others. If you plan to build a SaaS app, you don’t need to target a huge market. When you market to everyone, you market to no one. Pick a smaller niche you know well. Your niche makes it easier to target your audience when it comes to marketing and advertising. Focus your app’s benefits, not features. Show why your customers want it. It’s better if your app’s value prop helps customers make more money, get paid faster than something nice to have.
Cost
If the dev quotes you X number of hours, add 50% additional time as a buffer. Add another 20% of your own time to collaborate with them (questions, feedback, testing, deploy, ongoing support). If you go with the freelance route, you’ll get a wide range of quotes. It takes time to go through the interview process. Be prepared to spend at least a few weeks on that. The requirements need to be clear to avoid scope creep. You should have at least 1 final meeting to over every feature including testing, QA, live rollout. All should be agreed upon before start. Make sure you allocate extra resource after release. Your app will have bugs that need fixed. We did two revisions in 5 years.
Development
We don’t have any coding experience and are fortunate to be able to fund the dev ourselves. Even that, you still wear many hats. You are the project/product manager, tester, marketer, customer support. It’s better to have some knowledge about the dev process and project management. It’s very likely the schedule will slip but it’s your job to make sure it doesn’t become a multi-year long project. We use scrum framework to manage the project. Let your end customers use it asap even it’s just an MVP or limited feature app. The feedback will help you prioritize and plan the product roadmap. SaaS app has added complexity to the admin dashboard. Analytics, new signup, churn, customer upgrade/downgrade plans. You can build these tools in-house. You can also consider paid solutions to help you manage the SaaS business. Leads/customers will have questions about your product. Create good documentation of your app, how-to guides, self-paced training to help customers. Have a staging server set up to test new work from the dev. A SaaS app could involve many parties. Ours takes online payments for the landscapers from their clients. It’s very important that the payment system works. User case diagram helps when testing your app. Some features may need fast response and you will need to test it with the dev in real-time. You need to make sure the devs and you communicate often and well. We use slack. I don’t personally like it much but that’s what we have. If the devs lack communication or technical skills, fire them quickly, don’t waste each other’s time.
Marketing
I don’t have many insights on this as the app’s still under development. Our local landscaping business doesn’t need much marketing. We do have a small following on social media and plan to leverage it into the SaaS business. We started some content marketing and may do some paid ads. Still coming up with a strategy. We do have the buyer persona. I’m currently taking some social media marketing, and blogging courses. Need to find where landscapers hang out the most then decide on the channels. We may outsource that part of the effort. Any suggestions are welcome.
2020’s been difficult for many entrepreneurs. If you’re struggling this year, we hope 2021 will turn the corner for you. For those who do well in 2020, we hope your winning streak continues! For those who are launching soon, we wish you great success!
submitted by HouseOfYards to Entrepreneur [link] [comments]

Smartsheet (NYSE: SMAR) – Deep Dive Research – Part 1

TL:DR is at the bottom
Hello, welcome to my second deep dive write up.
My name’s Mark and I’m an accountant with a passion for investing. About two years ago, I used to work as an auditor at a public accounting firm and have been behind the scenes at many different publicly traded and privately held companies in the U.S. My goal is to bring my unique perspective from that past experience, my current experience working in a new role at a large corporation, and my understanding of accounting to help break down some of the most exciting growth stocks on the market today.
I’m a long-term investor. I am focused on finding great companies and holding them for a long time. I’m willing to endure volatility, crazy price drops, and everything that comes with this approach as long as the facts that led me to originally invest and believe in that company have not changed. If you want to learn more about this approach. I recommend reading the book “100 Baggers” by Chris Mayer.
Introduction
I’m excited to share with you all my stock pick for this month, Smartsheet. I’m always looking for investment ideas. I run stock screeners with different criteria (mostly focused on revenue growth), scan Twitter, talk to professionals in different industries, and try to observe what products or services are getting popular with my friends and family. One of the best investment decisions I’ve made to date came after I talked to my friend about a drink he was drinking on the golf course. Shout out to you Celsius (CELH)! With that being said, you never know where your next good investment idea is going to come from.
In the case of Smartsheet, I became aware of the company through a stock screener. I was drawn to the relatively small market cap ($8.6B), strong revenue growth (roughly 35%), and the fact that it’s a subscription business model (SaaS). Once I became aware of these facts, it cued me to take a deeper dive. The more I learned about Smartsheet, the more I liked. Management talks a lot about empowering people and that really struck a chord with me. In different roles I’ve had as a teacher, tutor, and supervisor, I’ve always found empowering people to be one of the most important keys to success. I will touch on this more later in the write up.
Another positive signal I got about Smartsheet came unexpectedly one evening. I was sitting in the kitchen and my girlfriend was cooking dinner. I was watching an interview on my phone with Mark Mader, the CEO of Smartsheet. My girlfriend overheard the word “Smartsheet” mentioned in the video and said “Are they talking about the Smartsheet with the blue check mark?”. I had to Google their logo but yes, it turns out we were thinking about the same Smartsheet. I asked her how she knew about it. She said “My company just transitioned all of our work onto Smartsheet. I really love it. Our marketing department is really excited about it because it makes their job way easier and more enjoyable.” Hearing this just motivated me to learn more about Smartsheet.
The Thesis Statement
For every stock pick I make, I want to provide a quick thesis statement that can serve as a reminder for why I’m buying and holding that stock for the long term. I’ll always aim to make it just a few sentences long so it can easily be remembered and internalized. This helps during times when the price may sporadically drop and you need to remember why you’re holding this position.
The thesis statement I have come up with for Smartsheet is as follows:
“Smartsheet: A leader in collaborative work management (CWM) software. As the global workforce becomes more decentralized through remote work, managers and executives now more than ever need a tool to digitally consolidate their teams, projects and deadlines. Smartsheet is that tool and is innovating to offer businesses even more ways to get the most out of their teams.”
I think this thesis statement really captures the essence of what Smartsheet does. If you go to Smartsheet’s website and look at the “About” page, you will find their “About” statement which says “Smartsheet is the enterprise platform for dynamic work that aligns people and technology so your entire business can move faster, drive innovation, and achieve more.” Notice how their statement emphasizes helping businesses move faster, drive innovation, and achieve more.
In my thesis statement, I mention that Smartsheet is a leader in the CWM software space. But how do I know this? Well, a highly reputable independent research firm named Forrester conducted a study on the CWM space based off different criteria including collaboration, enterprise capabilities, UI/user experience, planned enhancements and number of customers just to name a few of the factors considered. I put the companies that were identified from the study in the order of their ranking below. As you can see, Smartsheet is firmly planted as a leader in the space at 2nd place. Let’s use our common sense for a second. At the beginning stages of a remote work revolution, do we want to invest in an up and coming SaaS company that focuses on providing firms with resources to digitally manage their teams, digitally manage work/projects, and digitally collaborate to get work done? I think the answer should be a resounding yes. But what about these other companies on the list. Let’s break them down 1 by 1:
Now that we’ve established that Smartsheet is a leader in the CWM space and that they’re arguably the best publicly available pure-play investment in this space let’s understand why this is important. Other than the obvious reason that we’re in the beginning stages of a remote work revolution, why is this important?
Well, let’s take a look at this quote from Mark Mader, Smartsheet CEO, during the last earnings call (Q3 FY21) that occurred on December 7th, 2020:
“Leaders are recognizing they need to shift more workloads to asynchronous work, work that is documented, automated, tracked with dashboards, and where priorities are clearly defined. They understand that by empowering their teams with no-code solutions that facilitate asynchronous work, cycle times will be improved, a deeper sense of ownership will be created, and prioritization and accountability will be insured. Smartsheet is ideally suited to help enterprises work more asynchronously to derive the benefits from doing so.”
Key word here: Asynchronous. Asynchronous communication is different from Synchronous communication. Here is the difference:
Asynchronous: email, message boards, dashboards, etc.
Synchronous: video conferencing, chat, audio calls, etc.
Any communication that doesn’t require a real-time response can be considered asynchronous, like the examples in the picture above. Synchronous communication is any communication that happens in real time, thereby allowing for immediate responses, see examples above. As part of my research on Smartsheet, I read an E-Book that was written by the original co-founders of Smartsheet, Mark Mader the current CEO and Brent Frei who is no longer with the company. They wrote the E-Book in 2007 just a couple of years after the 2005 founding. The E-Book is called “The Power of Done”. The moral of the book is that Mark and Brent noticed through their own experience, and through different research studies on work place productivity, that the rise in technology in the early 21st century was actually making employees less productive. This is a quote from their E-Book:
“According to Basex, a research firm focusing on the knowledge economy, interruptions from email, cell phones, instant messaging, text messaging and blogs eat up nearly 30 percent of each day; on an annualized basis, this represents a loss of 28 billion hours for the entire U.S. workforce, or a $588 billion cost to the American economy.”
They mention in their book that although there has been a lot of advances in work technology such as email, word processing, and spreadsheets, there hadn’t at that time been any great applications created for teamwork collaboration or task management. The fact that technology advances helped the world create tools to enhance productivity but also deterred productivity at the same time is what Mark and Brent referred to as the productivity paradox. They wanted to do something about it and thus they founded Smartsheet.
How Smartsheet makes money
At the very least, before you invest in a company, you better understand how they make money. In Chris Mayers’ excellent book, 100 Baggers, that I mentioned above, he continually references top line revenue growth as one of the main common indicators of a possible 100 Bagger. This isn’t to tell you that any stock I pick will be a 100 Bagger just because it has great top line revenue growth, but if I am looking at a growth stock to hold for the long term, revenue growth is one of the first things I look at.
Before I talk about the revenue streams of Smartsheet, I want to share a little bit about the actual product that they sell to earn this revenue. Co-FoundeCEO Mark Mader realized that a lot of work in the corporate world was being done on spreadsheets such as Microsoft Excel. However, he realized that these spreadsheets were largely static and not necessarily used to their full potential. He wanted to help people get more out of their use of spreadsheets. As a result, we now have Smartsheets which is a cloud based platform that can be accessed by all employees of the company no matter where they are with live information about project statuses, meeting times and work that is assigned to each employee just to name a few uses. Users can choose their way of viewing this information with different views such as calendar view, grid view, card view, and Gantt view.
The idea is that by enhancing the availability and quality of asynchronous information available to all members of a team about the status of a project, the tasks assigned, and the timelines, the less synchronous communication will be needed which allows employees to spend more time doing what they’re hired to do – get work done. Think about how wasteful it is to hire a highly talented engineer but then make him spend half his day preparing for and doing status update meetings and hunting people down to see where they’re at with their assignments. What if all this information was available for him, his managers, and his staff to see within Smartsheet without having to bother each other and waste precious work hours that could be used for coding, designing, and producing? That’s what Smartsheet looks to achieve.
For Smartsheet, their means of making money is quite simple. As I mentioned earlier, they are a Software as a Service (SaaS) company. Whenever you see SaaS, that means subscription revenue and in my opinion that’s a very good thing. With a subscription business model, the revenue is going to be recurring every year and that type of reliability (combined with growth of course) is something you want as an investor.
Smartsheet’s primary source of revenue is the sale of subscriptions to their cloud-based Collaborative Work Management (CWM) platform. Customers and potential customers begin their engagement with the Smartsheet platform by either signing up for a free trial, purchasing a subscription on the Smartsheet website, going through a sales rep, or they are exposed to Smartsheet by collaborating with a Company/Individual that uses Smartsheet. For subscriptions, customers select the plan that meets their needs and can begin using Smartsheet within minutes.
Smartsheet offers four subscription levels: Individual, Business, Enterprise, and Premier, the pricing for which varies by the capabilities provided. Customers can also purchase connectors, which provide data integration and automation to third-party applications.
The Connectors part of the business is something I find really interesting. Basically, Smartsheet has made deals with most of the top work productivity and communication software companies in the world to allow their customers to use those applications within their Smartsheet user interface. This helps position Smartsheet as the true “command center” platform while the products of the other companies become ancillary pieces. You’ll see this on the link above but some products that Smartsheet sells Connectors for include Adobe Creative Cloud, Microsoft Dynamics 365, Salesforce, Jira Software, Slack, and Skype just to name a few.
I think that being able to sell these Connectors as ancillary pieces to the Smartsheet user experience is so beneficial to Smartsheet because a lot of these companies that people may perceive as “Smartsheet competitors” actually become a piece of the Smartsheet platform and can be sold by Smartsheet as a supplemental revenue stream. This neutral angle that Smartsheet is able to come from by selling Connectors to their perceived “competitors” reminds me a little bit of how Roku (ROKU) is able to earn revenue off of selling a Netflix subscription on their platform. I think just the fact that all these big companies like Adobe, Jira, Salesforce, etc. allow their products to be integrated into Smartsheet shows that there is a high value proposition in the Smartsheet platform and that they would risk alienating their customers if they didn’t allow for their products to be integrated with Smartsheet.
On top of the Connectors to third party vendors that Smartsheet is able to sell, Smartsheet is also able to sell upgrades to their own internal plug-ins. Smartsheet has some impressive proprietary plug-ins they can sell to their customers. For example, in May 2019, Smartsheet acquired 10,000ft which augmented their product portfolio by providing resource allocation and planning. The name “10,000ft” is meant to be analogous to having a high level view of your company and all resources available within your company and how to deploy them.
Also, in September 2020, Smartsheet acquired Brandfolder, Inc. which provides a centralized platform to organize, discover, control, distribute, and measure all forms of digital content. Combining Brandfolder capabilities with Smartsheet allows them to create dynamic solutions that manage workflows around content and collaboration. This goes back to what I said earlier in the article about how my girlfriend had mentioned that her company’s marketing team was “really excited about Smartsheet because it makes their job way easier and more enjoyable.” She told me that before Smartsheet, her company’s marketing team had to constantly hunt down members of the creative team (photographers, graphic designers) to receive the latest photos, videos, and digital designs they were working on. She said it was a big pain for them trying to share this content over email and SharePoint. Now, all of the content is inside of Smartsheet and the marketing team can access it at any time. They can leave comments on the content, route to appropriate individuals for approvals, and have better insight into the status of all digital content that is being worked on. The acquisition of Brandfolder is really what allows Smartsheet to stand out in this department.
Nobody really talks about it, but digital content is so important these days for companies in terms of controlling their brand image, putting out quality advertisements, and presenting their product in as positive of a light as possible. The fact that Smartsheet has a strong proprietary plug-in for this with Brandfolder is very promising. During Smartsheet’s FY21 Engage Customer Conference, Anna Griffin, Smartsheet Chief Marketing Officer said that the global annual marketing spend is $500B for companies around the world. She said the role of the marketing department is changing from sole content creator to Editor in Chief. All kinds of teams within companies these days are putting out content that effects the company’s brand. Sales is running social media campaigns, product marketing is putting out blog posts and podcasts, and R&D is teasing new product experiences in app. It can get really difficult for the company’s Marketing/Branding team to stay on top of all this without a centralized digital content collaboration platform like Brandfolder in Smartsheet. This is just one reason why I think Smartsheet has a lot of growth opportunities in the future.
As you can see, Smartsheet has a lot to offer to companies with their core CWM platform, the Connectors they can sell, and the internal upgrades available such as 10,000ft and Brandfolder. On top of that, Smartsheet also provides WorkApps, a proprietary no-code platform that empowers users to build intuitive web and mobile applications that streamline business and simplify collaboration. There are so many instances within companies where an app needs to be built to streamline a workflow. Traditionally, companies need to engage their IT departments and the coders that sit within these departments to build these apps. This places a lot of strain on IT departments and takes away time they can be spending on more complex/mission critical projects. Mark Mader is aware of this and thus is heavily pushing no-code as a solution for companies now and in the future. He believes that everyday non-coder employees know their jobs/workflows best and thus if you empower them to build their own apps with a no-code platform they will produce better and more relevant apps to help get work done than an IT department employee who doesn’t even do the job that the app is being built for. Also, he believes this will reduce strain on IT departments and allow them to focus on more complex and mission critical projects.
Here is a quote from the Director of Sales (Hina Patel) at a Smartsheet customer, Cisco (NASDAQ: CSCO): “I have been waiting for a solution like WorkApps that can give us quick and easy access to the content we need, when and where we need it,” said Hina Patel, Director of Sales Operations at Cisco. “The ability to take our Smartsheet assets, along with other tools we use, and package an entire solution in an intuitive app will make it even easier to drive active participation from everyone involved in the process, no matter their role.” As you can see, the value proposition of WorkApps and the Smartsheet platform appears to be high.
Lastly, Smartsheet also generates revenue from Professional Services which is essentially providing training and customized consulting to Smartsheet customers that want to get more out of the Smartsheet platform. In the most recent quarter, Q3 FY21, Professional Services accounted for 8.2% of revenue. Here is the breakout from the most recent quarter:
Subscription revenue = $90,890M for 91.8% of total revenue
Professional services revenue = $8,043M for 8.2% of total revenue
This is the end of my first article about Smartsheet. My goal is to drop Part 2 within the next week. The focus of Part 2 will be an in depth answer of the question – “Can we 10x from here?”
TL:DR
Disclosure: I am long Smartsheet. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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[Table] r/buildapc — I'm the owner/founder of PCPartPicker. Celebrating 10 years of PCPP + /r/buildapc. AMA (pt 1/2)

Source
Note: other employees' answers were occasionally included, but are by no means complete.
Questions Answers
PC Part Picker. Where do I start. First of all, thank you so much for all of the help you guys have given me. If not for your team and your website I might not have built the PC I have now. I am very grateful to you guys for making such straightforward software with so many options. You guys are on top of everything, and I’d just like to thank you for all that you’ve done for the PC building community. That being said, onto the questions! 1. What are your favorite PC Parts? What’s your ideal/dream PC part list? 2. I’ve been having this problem recently because things are out of stock. When I make a parts list I often have to go into the page for the part to determine the actual cost for the part when it comes back in stock from the major retailers. When displaying the price, could you also add in parentheses something like: Price: $265 (Lowest: $200) Thanks for the kind words! I'll defer to Alex/Ryan on their favorite parts. For me I'd just like to get hold of a 3080 one day but I'm not in a rush. I'm still happily running this build: https://pcpartpicker.com/list/c99djX
On the stock / pricing issue, we might be able to look into something like that, but I can't make any guarantees.
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Downmented: It's a bad time to be GPU shopping when the founde owner of PCPP can't even score a 30 series GPU BDsBiggest: This was my thought, how does he not have one? I honestly don't really need one and there are people who play way more intensive stuff than I do. I'm ok to wait.
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On that note, what do you play?!! I still really enjoy Minecraft of all things. My oldest son started playing Skyblock and so that became a bit of a time sink. Used to play a decent bit of Civ and other Sid Meier stuff a long time ago. I'm just not that much of a gamer though. I'm legitimately terrible at FPS games, so I don't really enjoy them all that much. Minecraft lets me just piddle around and experiment with different creations, architectures, etc. And it's something I can play with my kids which is great until they trash my island.
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As a fellow Minecraft buff, what are your thoughts on the best CPU for Minecraft at the moment? I know it depends more on CPU performance than GPU, at least in Java edition. I'll have to defer to the other guys on staff or the community because I honestly don't know. I'm playing on an i5-6600k/980 ti which has been more than enough.
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Thanks for the response! How long have you had that build for? Roughly four years. I need to upgrade the GPU though because where I work in my house it's getting cold and ThoughtA is outpacing me on Folding at Home.
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Do you have a rebuild planned for when the 3080 is back? Or just upgrading the current rig? It'll probably be a new build, but I'm not sure what it'll be. If 3080s come back in stock where I can get one, then I may start with that and plan the rest around it. Especially if it's something with a particular aesthetic or color scheme that I want to match.
Thank you for your site and all the countless hassle it saved me from. What do you guys and gals think is a thing our community could help you with ? Is there something like a roadmap for pcpp and what are you personally most excited about ? How should people give feedback to you and the other team members? Which channels are you preferring ? On which channels can I send my monthly thank you very much for your service messages ? Re: what buildapc can help with - this community has helped us so much over the years that I have no asks whatsoever. Just thanks. Thanks for letting us be a part of the community.
We don't have an official roadmap - I run the dev timeline like a software engineer who is terrible at time estimates. Things I promised eight years ago are still undone while other stuff jumps ahead. I'm most excited for benchmarking. I love performance analysis, and what we're building should be super cool. Lots, lots, lots of data, all in tightly controlled environments. The hard part is how to present relevant bits without overwhelming people with data.
For feedback, feel free to ping us on our site forums, our contact page, or on our discord channel. Discord is probably the least formal if it's something small, though I'm not on discord all that often these days (Ryan and Alex are though).
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Ah, "agile" development. Nope! None of that. No agile practices here thanks. Just software development structured along my capricious demands...
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IMHO, "we don't have a project management philosophy" is the best project management philosophy. As long as progress is being made and people are happy, management theory would just get in the way. For a while I was working on a codebase of several million lines of C++ in an org with 100+ other really smart engineers. I participated in an effort to modularize part of it, and I failed pretty badly. One of the most important things I learned was from an old Windows NT dev presentation that talked about Conway's Law. That really reshaped how I viewed architecture, teams, responsibilities, and communication patterns.
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Did you consider licensing/sharing benchmarks from other hardware review sites, rather than developing a (presumably not-profit-generating) benchmarking competency? Alternatively, if you do want to generate benchmarks, have you considered monetizing them via a blog? We're planning on benching at a scale that most review sites don't do. Like an order of magnitude more pairings, runs, etc, with a bit more detail on each as well in terms of current consumption, temps, etc. All that all recorded on identical software setups for comparability. No one right now is doing that at the scale we want.
It's definitely not a profit center, and that's ok for me. I love benchmarking. Before PCPP I was part of a team working on optimizing compiler stuff. I loved writing compiler optimizations and testing the performance changes. So that whole side of things - determinism, accurate measurements, etc, I just really enjoy it. So PCPP in a way helps fund my desire to do that work whether it is profitable or not.
That being said, I do think it's a complementary feature set to add. While it may not monetize directly, I think the value it adds to the site will (hopefully) result in an incremental change in traffic/revenue.
So how does it feel to have a side project or yours become as popular in the computer world as google? You've become the only place I recommend newbies to go (other than reddit) for pc building help, and your site has become the most useful tool I've ever used outside of my daily IT work. You've created something not only powerfully useful, but well designed, smoothly operated, and pleasing to the eye. I don't really have much of question more just taking the opportunity to say thank you for creating a fantastic tool for the community. If a bigger company offers you millions to sell it I'd understand if you did, but please don't, I can't imagine the site being run any better than by it's original team! Thanks for the kind words. I gave my mom a shirt. A couple years ago someone recognized the shirt in rural east Texas. Like, she lives 30 minutes from the nearest town of 5,000 people. That was pretty wild. My mom was pretty excited lol.
I love having something that I helped build be a useful thing for people. That's immensely satisfying. (And it's a team effort, not just me by any stretch at all. The whole team helps every bit of what you see on the site).
On the other hand, I don't want or like to be out front. I'd rather be behind the scenes working on something and not really be noticed. I think that gets reflected, probably negatively from a business-first standpoint, in how I run things. I don't really push branding hard, don't push social media (Twitter, Instagram, etc), because I personally don't want to be out front there. I can engage here on reddit because I feel like I'm a part of the community here rather than some corporate/redditor relationship. From a business standpoint, I think there's a lot of growth possibility that PCPP hasn't tapped into because I want to avoid various social anxieties and whatnot.
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Just know that if a company offers big bucks (and they probably will eventually) it is because they see an opportunity to leverage the base you built to make money and it most likely will be by selling the customers who trust you. They will probably do something like partner with large manufacturers or sellers and push their own products while if ignoring what is best for the people looking to create their own best build. Yeah that makes sense. We've made some decisions that probably wouldn't last long - not running ads, not selling user data. So really there seems to be two options: either we run this out until it dies on its own and we get to keep our ideals/positions, or we run out of energy and sell. I don't want to sell. I don't plan to sell. But I'd be lying if I said there weren't days where I feel so tired and just want a break for a bit. It's trying to find the balance of doing a job I love maintaining principles I value and also not destroying myself physically/emotionally/etc in the process.
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Oh cool! If you don’t mind me asking, what area of East Texas? Did you grow up out here? I’m from out in Van, approx 30 min from Tyler. My close friends and I love PCPartPicker. I just used it to build my upgraded rig a couple of weeks ago. Nice! I grew up in Tyler (edit: but my mom currently lives 30 minutes east of Center, TX - basically on Toledo Bend reservoir and the TX/LA border). My electronics teacher in high school (Mr. Ray) was from Van. He was formative for me in pursuing electronics seriously by introducing me to VICA and electronics competitions.
Benchmark integration timeline when 🍿 Probably mid-2021. We're almost done with a building renovation where they bumped our building service from a 400A service to a 1200A service. Added AC capacity. That 800A is going toward bench... it's going to be fun. This is what I'm talking about https://imgur.com/a/rffuVin. Can't wait to get this all up and running.
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I have a massive transformer that’s the size of a fridge I can’t seem to sell if you guys want it. It was meant for a Bitcoin farm but was never used. Cost $5000 I just want it gone it’s so heavy lol LOL thanks but we're good. They actually delivered the 1200A from pole mounted transformers. MEP guys were surprised, but the power company said they could do it. Sure enough they did. Old vs new pre-hookup: https://imgur.com/a/ODQlACV
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Dude, you do AWS, dev, hiring, project direction, and building management? Your operation must be crazy efficient. Oh no I offloaded all the building management stuff to Jack. He's handled almost all the renovation work, which has been an absolute life saver for me. I just come in and throw wrenches in things by adding last minute requests for extra conduit runs from here to there, replace those windows, change that paint color, etc. Jack handles all communication and followups with the GC, subs, etc.
The other stuff I do do though. AWS (our infrastructure isn't that big really, a couple dozen EC2 instances, RDS, Redis, CloudSearch, Cloudfront, etc). Daniel handles the bits of Lambda that we use. I kinda enjoy the deployment / devops side of things, and I think it's important to have my fingers on the pulse of that whenever I'm designing new features. Helps me have a better feel for what kind of query impact different code or modeling decisions will have.
The hiring isn't much - we've averaged about one person a year and that's usually someone in our existing network of relationships. And project direction is pretty small right now since we shut down our cycling site. Back down to just one website makes it a lot simpler. We talk about what we want to do as a group a lot, so (I think) everyone has a pretty decent picture of where we're headed despite timelines not being nailed down strict.
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What kind of benchmarks would you be running? Have you considered pulling data from places like passmark? Anything we can run deterministically and automated and that has license terms that allow unfettered publication of result data. We won't be pulling data from anywhere, passmark included. All the data will be from runs we do in-house.
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May I ask why the focus on internal metrics vs just pulling them? Mainly because we can control all the variables and make them consistent across all our result pairs. We have some absolutely phenomenal performance analysis engineering expertise in house.
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Unfettered publication of result data. Wow. Nice. As someone who likes playing with freely available datasets, I really appreciate this. Hard to learn data science without freely available data sets that regular people can have some level of subject matter expertise over to start to learn how to put data-driven stories together. Sorry, what I meant was that the license terms of the benchmark software have to allow us to publish the benchmark results without restriction. There is a popular benchmarks out today that requires the benchmark results be vetted by them first before publication. We'd have to manually send over bench results if we weren't using their bench platform (we're not, we have our own). Then wait for them to approve, and then we could publish. That's not viable when we're testing at the scale we plan to - it'd need to be automated at least but they couldn't offer that. And for benchmarking prerelease hardware under embargo, it'd mean that we would have no ability to publish data right when the embargo lifted. We'd have to wait however long for their manual review.
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How will you be able to benchmark hard-to-get hardware? e.g. RTX 3090, Radeon 6800xt, and Ryzen 5000? Will the manufacturers send them to you? Or do you have to buy them? I think it's a mixture of both. On new release hardware it's helpful to have bench data when embargoes lift. But I also want to have store-purchased hardware as the main part of our hardware pool, however long it takes to acquire that. We can flag the benchmarks that come from manufacturer review samples - that way people know the source and can factor in review sample binning.
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So once upon a time, I was gonna write a program that would pull benchmark and pricing data to build a list of best value parts, such that no part in the list had a better performing part at a lower price. A sort of definitive do-buy list to make it easier to pick parts. Once benchmarks are done, pcp would have all the infrastructure in place to make that happen in some form on the site, perhaps as a filter for picking parts or as a warning on the part/build pages? Yep.
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sorry, I'm not sure what you're saying that to, I should have actually posed a proper question: Will you be implementing that? That's our intent, yeah. It may take us a bit to get there though.
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There is...a lot... of metal shavings in that box. Ah I’m sure it’s fine it’s only 1200A. Oh at that point it was still all being hooked up. It's cleaner for sure.
Check this out - relative size difference between old and new...
https://imgur.com/a/xQD1fEY. (That's one Barry for scale.)
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But how do we know how big Barry is if he's not holding a banana? Barry is approximately the same height as one marinelli.
A lot of people seem to think that you only host sellers that provide you affiliate kickbacks. Is there any truth to that? Have you ever allowed or disallowed a seller on the basis of affiliate money? How do you decide whether to host a seller or not? That's not true. We list several retailers without affiliate agreements. Affiliate relationships are often much much easier because they almost always already have price data access. That's the main thing we need.
Our choice on hosting a retailer largely depends on whether we feel they are good for users or not. If a retailer is being abusive to users or doing highly manipulative stuff, we'll remove them even if they're profitable. We've done that several times in the past. If a retailer also has highly inaccurate pricing, we'll delist for that too.
Yaaatttttt: Not sure if you are allowed to reveal this but what retailers have you delisted in the past? LightningProd12: They delisted MicroCenter in the US because they had too many in-store only deals and no way to tell the difference on PCPP's end. And not everyone can go to one, if you live in the Northwest the closest one can be 800-1000 miles away. Edit: This is mostly false, look at the comments below. ThoughtA: This isn't true at all. We want to have them on the site. We had some discussions with them, but they stopped responding.
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Oh ok, I remember suggesting it a few years back on the forums and getting told they were delisted. EDIT - Forum post link: https://pcpartpicker.com/forums/topic/309304-request-add-microcenter-to-the-list-of-merchants I falsely remembered there being a reason but was told they were removed from the site. We did actually list their in-store deals. I put in a decent bit of code for that so that they only showed up if you were within a configurable radius of one of their locations.
It's a long story, but the gist of it is that we were waiting on some stuff that never came and things went silent. We reach out from periodically but nothing. It stinks - we'd be happy to list them.
You never know what you reception you'll get from retailers. Some are beating down the door to get on board - that's awesome. Others we have to prove that we're worth their time - that's not unusual. A few will say they want to work together, we get 80% of the way there, and then... silence. Or the key person you were working with takes a job somewhere else. And then some retailers basically say not just no, but h*** no. I'll never forget that one. For some retailers there's a strong aversion to something we do, whether it be price comparison or something else. But just know that if there's a retailer that is reputable and treats customers well, we're more than happy to work with them and get them listed.
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Ohh ok, that sucks. On a side note, is there a story behind the "h*** no" retailer? They're, eh, no longer in business. Honestly probably dodged a bullet there.
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Maybe this was asked already but still: are there any timeline/plan to add more countries to the country list? I am leaving in Austria and I have to use Germany to see the prices and availability of the parts. Moreover, I see German retailers and prices but not Austrian ones. We're continually adding new countries and retailers. Adding a country is just a few lines of code on our end - we do that when we have a retailer to add in a country we don't currently support. So really it's a matter of finding and adding retailers. If you have any you'd like to see, send us a note on our contact page and we'll take a look at it. Jenny reaches out to the retailers to see if we can get them on board. It usually takes a while to get in contact and get good data access.
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I already raised this issue to him several years ago - because it was blatantly in the open for users in Germany. You would get amazon affiliate links as "lowest" price, even though there are several other stores that are cheaper... He got angry quickly and gave me the same bs excuse. The top sellers with the top user ratings were never listed as cheapest even though they were. We list the buy box winner for Amazon. If you're saying we prune results for various marketplace sellers, well, you're wrong.
How's the team handling COVID? Is everyone working from home? What kind of challenges are arising? I sent everyone home in March. We haven't met as a group since. It's been ok - we just meet on video conferencing when we need to. Jack and Barry are up at the office overseeing the renovation which should be done mid-January. I'll probably be up there from January to April to do the benchmark network cabling and office rewiring (from cat5 to 6a+fiber) because I kinda enjoy cable crimping and punch downs. :)
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The transition from cat5 to cat6 is worth? Yeah. We're not running 5e, just 5. It's what was in there from when we bought it. So that's not where I'd like it to be for good 1Gb.
Any chance we'll ever see some more filtering options for SSDs? It would be really handy to have the following * Filter by the primary storage type SLC/MLC/TLC/QLC/Optane/etc * Filter by whether the drive has a DRAM cache or supports Host Memory Buffer (HMB) I'd love to, but I think it'd cause a fissure I'm not sure how to fix. Right now we have SSDs and platter drives in the same category, but the specific filtering for each is different. To apply the really detailed SSD filters, I think they need to be their own category. Same with the HDD types. I don't know if splitting them up is the right path though, so I've been continually punting the issue down the road until we're forced to decide one way or the other.
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Tsk tsk, don’t accumulate technical debt there Oh, no, it's quite the opposite really. Parametric part additions record the type and filter selections. Those added to a part list stay there forever - we never throw them away. So any filters we add never get removed even if we don't show them. Because of that, I try to be very deliberate in what we add and what we don't. Once I add a new part category or filter type, if I decide later it was a bad idea then it means I get to write lots of migration code. That's no fun.
Super excited for the an app version. Are you guys considering price tracking so that users can set alerts for when hardware drops to a desired price? Yeah. We have that on the site already with email alerts. But the PWA provides them via browser push notifications (on platforms that support that). I have that all working in a beta test mode (for staff only) right now and it's feeling pretty solid.
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As a front-end engineer, what's your stack look like for the PWA? Basically built on top of our existing responsive site (Python, Django). I didn't want to spend a lot of time migrating to another framework, so instead spent the time kind of standardizing our own API-ish setup and then handling the caching or offline modes for that as needed. We went responsive with PWA to avoid maintaining three separate codebases (web, iOS, Android), but it's looking like we may go native in the end anyway. This buys us some time at least.
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So not iOS? Right. :(. I understand there are some workarounds to get push notifications through wallets and whatnot, but that feels pretty hackish to me. We might end up going native on iOS at some point to get good notification support there.
How hard is it keeping up with and adding new item releases (not only the new 3000 series graphics cards from nvidia but also possibly unknown stuff like network cards, etc)? Are there any items you decide not to add or do you try to list everything you can? New GPUs are pretty easy. CPUs are ok, sometimes a pain depending on the chipset/bios situations. Motherboards are terrible, especially the last few years. Cataloging all the M.2 ports, their constraints (PCIe in this slot disables that SATA, etc) is a major pain.
There's some stuff, particularly on cases, where there are compatibility constraints that are not economically viable to model. We know what the constraints are, but to model them all across 30k+ parts would make data entry so slow that we'd never finish.
We try to hit the main product categories, but we'd love to expand that. It's really an issue of how time consuming and costly it is to do the data entry for it versus how often it's used.
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So Wikipedia seems to be crowd sourced, and works pretty well. Maybe some of the more laborious data entry parts could have a crowd source entry option, but be flagged as such when people bring up anything containing those results (a disclaimer).. It's just not reliable enough. It has to be super accurate, and it's not something I'd ever feel comfortable outsourcing.
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Have you tried asking the manufacturers to get involved? You might just be big enough. When new releases are coming out we sometimes get data ahead of time. Cases are pretty common. Motherboards are a lot harder, because of embargoes and even BIOSes and manuals not finished days before release. Some of the constraints we see are pretty one-off situations that make it hard to provide some sort of standardized input form for though.
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what if you let companies input their own data for their products. I don't trust that to be accurate enough. We routinely find bad spec data even on manufacturer sites.
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I imagine that PCPP is large enough now to direct traffic to or away from various retailers in volumes they will care about. Like how Google went from small to large. Given that, probably PCPP should begin leaning on retailers to provide product data in an ingestable format, making data entry moot. We work with retailers to provide the right data in feeds for sure. But the hard part is that not all retailers have the technical expertise on hand to do it (or for smaller retailers, the margin and profitability to pay for that expertise). The back-and-forth to get updated feed frequency, proper part numbers, stock status, etc - it's non-stop. Brent and Jenny bear the brunt of that.
I know you've been vocal about not opening up a merch store for personal profit, but would you ever consider a merch store where all proceeds go towards your well building charity? We did this once. My accountant was like, "please don't."
Basically if we buy a thousand shirts and give them away it's super easy - they just get marked as a marketing expense and we give them out however we see fit. But as soon as any of them are sold, you have to track inventory, cost basis, etc. It's a lot more tedious and last time it was maybe a couple shirts a week - enough to invoke packaging and transport overhead but not enough to be efficient. So we instead just give them away at various bapc milestones and donate from our affiliate income instead.
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Kinda funny reading this while wearing the hoodie! It’s easily the comfiest hoodie in my closet. Oh, major props to Phil for that. He picked it out. I love mine too. We printed some smaller ones for kid sizes and my oldest son tries to sleep in his.
transam617: Philip, Thank you for 10 years of your indispensable help. Over that time, there were probably millions of visitors to your website who have had their PC building experience improved or made possible through the use of your wonderful tool. But specifically: Since 2014, our little corner of reddit (now 10K subs) cabalofthebuildsmiths, has been more effective, and has helped more people as a direct result of your website tool, than from any other tool we have available. We pride ourselves on giving builds to customers where they can reliably buy every part we pick, and be sure they will work as expected. This process takes research and a lot of effort, but the highly accurate, effective communication of pcpartpicker (for all the countries you cover) is the foundation of our process. Thank you for making the messy world of PC parts a little more bearable, thank you for making it all possible, and a big thanks from us, cabalofthebuildsmiths. transam617 kokolordas15 dmz_dragon danyulz bramblexd Thanks for your kind words, and thanks for all the work you all do to help builders!
What happened to the youtube channel? Loved the build videos and interviews you had while it was still running. We moved buildings a couple years ago, and decided to pause on them while we renovated the new space for filming and benchmarking. The renovation is finishing up likely mid-January - it took waaaay longer than we originally thought. If we had known it'd be that long we probably would have figured out some interim plan. So once that reno is done, we'll probably start ramping up content again. I'd guess mid-2021 or so.
[deleted] My first computer was a an AMD K5-133. That was late 1996 I think and I was in college. My friend and I ordered our mobo+CPU off an ad on a magazine page. I bought his old case and an 80MB HDD off of him. Ran Windows 3.1. We played Warcraft 2 across a null modem cable - that was probably the most fun I've ever had with PC gaming. Floating point on that thing was terrible though. Playing a 64kbps MP3 chewed up like 60% of the CPU.
My roommate introduced me to Quake 2, specifically Action Quake 2. Loved that game. I started running a website on the dorm network on it that got pretty popular. But queries on the db would tank my Q2 framerate so I put in code to disable queries while I was playing.
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tiger direct? No, it was some small place out of the northeast. I mean, that was pre-internet-shopping days. Wrote a check, hand wrote what we wanted on the order form, mailed it, and waited weeks. No phone calls, no email confirmations, nothing. My kids have no idea what that was like.
Fun fact, I got banned from PCPartPicker for adding a purple dildo from Amazon to my build. Yeah that'll do it. User code of conduct / ToS and all.
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Boooo. Thats kinda weird, especially for private/personal builds. Most of the retailers we partner with have as a part of their terms that our site not contain NSFW material. I get some people think it's funny but it can get us shut down, and I'm really not ok with that.
I've used your site so many times and I even met some of the team in Austin outside Dreamhack. Thanks for all you do! Who has the most powerful computer on the staff and what are they running? I think most powerful computer probably goes to manirelli right now.
Do you have any career opportunities at the company? I have a couple years of marketing experience, but I can’t find a job in these tough times. At least I’ve been learning python so I can get better at data management. Unfortunately we're not hiring right now. :(
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Mind if I ask where you typically post jobs when you are hiring? Greenhouse.io, LinkedIn, Indeed, all of the above? Usually it's someone we have an established relationship with. We haven't ever posted a job listing to date.
Are you going to work on an official PCPartPicker API so people don't have to break ToS by scraping? No. I'd prefer to offer sufficient service that people don't need to scrape.
Most scrapers use up a lot of resources or don't even do cursory things like follow robots.txt crawl delay specs. It's really frustrating. I'd like to spend my time focusing on user benefitting features than blocking abusive crawlers.
gordonv: A cached CLI/SDK that draws from a CDN (not your web server) would be cool. You'd provide sufficient service, reduce processing cost, and get usage stats. The best way to defeat crawlers is to defeat their purpose. Make scraping look idiotic. Heck, mock scrapers in your HTML with an URL to your API. Add a little wit to that wisdom. Add AWS Cloudfront and now you have 200+ servers in the USA distributing your CLI with authentication to 3 million calls for $20 a month. Some leet stuff. Just noticed a sprinkle of posts calling for an app. If you spec CLI/SDK along with app development, killing 2 birds with 1 budget stone. We're rolling out a PWA (hopefully) before the end of the year.
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invisi1407: Perhaps a better question is, why is there a need for scraping? Could that need be satisfied by new/improving features on PCPP? MLG_G0D: Because integrations with PCPartPicker would greatly benefit the PC building community. Constantly navigating to websites can get tiresome, especially on low spec machines. Automation is great. invisi1407: I understand, but exactly which integrations are people looking for? I get it, but I also understand why PCPP isn't interested in having a public, free API. MLG_G0D: I was thinking about integrating PCPP functions into a reddit/discord bot. invisi1407: Not unresonable, but you do understand how it takes away any earnings from advertisements and what have we on their website, yeah? It seems like they are a small company spending an enormous amount of time on the data they are presenting, so I don't think you'll ever see a free public API anyway. Perhaps a paid one, but I don't suppose many would be interested in that anyway. MLG_G0D: Seems reasonable. I'm just a massive fan of companies being open to their userbase, but I guess PCPartPicker hasnt quite grown to the point where thats economically feasible. There's more to the picture. On pricing data: We're not the source of pricing data as that comes from the retailers. We have various agreements in place where they give us that data to display on our site or to market their products in ways they allow us to. We don't have permission to then hand that data to a third party to do whatever they want to. If we make it available to someone else via an API, we're breaching terms of our agreement, which in turn makes us lose our affiliate deal and price access. Boom, business is dead. Basically if you need that data, go to the source (the retailers) and negotiate with them.
For product data: We've invested a lot of man years to build our data set, and some of that data helps us maintain a competitive advantage over copycat sites. Making it easier to retrieve that data isn't something I'm keen on. There are other sources of product data available that are more expansive than what we have anyway. I'd suggest pursuing that if you want to build your own hardware related site stuff.
On API stuff for partlists and markdown: If you just want a discord bot, I'd be happy to chat through what it is you're looking for to see if that's something we could support officially on our end. We have our own discord server bot that uses an internal API to do partlist embeds.
Last bit - publishing an API adds an additional thing for us to maintain. It's a maintenance and support burden. Even an unofficial API is. It becomes something that I have to test and not break any time I refactor code around it. We're a small company, and that's not really an area I want to allocate resources around if it's not a revenue generating thing.
Thanks a lot to you guys! With your site, I managed to make 3 separate lists, and now my dream of building a PC is coming true. Maybe you could add recommendations based on what the person has on their list, such as a cheaper but better graphics card, etc I think recommendations are a possibility once we have our in-house benchmark data in place. But that'd be a ways down the road.
Thanks for your work, and since this is an AMA, simple question: Which is the best flavor of ice cream and why? Amy's Ice Cream here in Austin. Belgian Chocolate. It's just wonderful but I haven't been there in almost a year now.
manirelliPCPartPicker: I will second Amy's but I'm partial to the Mexican Vanilla flavor.
Wow. What a cool thing to see on Reddit. This is the first AMA I’ve ever replied in/commented on. I’m brand new to PC (3 year macbook user here, and besides a brief stint with a windows Hp laptop on which I played Rollercoaster tycoon and club penguin with “back in the day” I have never had need for the site. Until last month). I’m grateful the site exists, and it’s quite intriguing to me how you manage to create and maintain (emphasis on maintain) such an EXTENSIVE database of parts. I know it’s part of your life, however it astounds me to see these parts that seem so very minuscule, always appear. Have you considered, or maybe there already is and I simply am blind or don’t know about it. Have you considered adding any sort of personal or user based rating system regarding parts? Or a warning system for parts with known issues out of the box? Our ratings are from users, but we only allow ratings/reviews from completed builds. That way we know that the review is from someone who actually built with it (versus say a 1 star review from someone mad they couldn't buy it).
We do offer some warnings on known issues, but it's something we may expand in the future.
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