A Textbook-Swapping Platform that Could Change the World
Leah Kodner, Business Librarian from the James J. Hill Center interviews 1 Million Cup presenters each month for the Startup Showcase feature in the Pioneer Press. Recently she connected with presenter Richard Krueger. See interview as seen in the Pioneer Press Startup Showcase on October 7, 2017.
According to a 2016 Bureau of Labor Statistics report, the Consumer Price Index for the cost of college textbooks increased 88 percent between January 2006 and July 2016. By comparison, the average increase for all items in that same time period was 21 percent.
Richard Krueger knew that this has been a problem for many students, and he and his partners came up with Swapzit to help solve the problem. Swapzit allows users to list the textbooks or other items they want to get rid of, along with a textbook or other item they need, and Swapzit arranges a multi-party swap, giving all users the item they want in exchange for the item they no longer need.
Name: Richard Krueger
City you live in: St. Paul
City of birth: St. Paul
High school attended: Archbishop Brady High School, West St. Paul
College attended: St. Mary’s University, Minneapolis
Name of company: Swapzit
Business Start Date: June 1, 2012
Number of Employees: 4 founders
Number of Customers: Over 1,000
Q. What led to this point?
A. Myself and the other three founders, Jake Wiatrowski, Lucas Krause and Jamie Weber, have made successful careers out of leveraging technology to automate manual processes and compiling data to gain insights and make better decisions. Most of us currently work in the Business Intelligence field.
We exist in that sweet spot between generations where we aren’t intimidated by new technology, nor do we take it for granted. We’ve seen so much innovation in our lives, from the inception of call waiting on land lines, to having access to the sum of human knowledge in the palm of your hand. We want to make a positive impact in the world, and we’ve grown up with technology being the tool to make that impact.
Q. What is your business?
A. The Swapzit business is one of identifying and retaining value. We call it “Worth Finding.” We live in a world of abundance where most people have things stored in their closets, basements and garages, and yet many of us lack the wealth to get the things we need and want. Swapzit provides a medium for people to get the maximum value possible from the stuff they have by getting them the things they actually want and need.
Swapzit is a platform which uses an advanced algorithm to identify complicated multi-party exchanges. What does that mean?
Let’s say that you’re a student that has an engineering textbook you don’t need anymore, and your next class is an art class. You could sell your textbook back to the bookstore at a 90 percent loss, and then kick in another few hundred dollars to get your art book. You could try to find a student who happens to have the textbook you want and also happens to want the textbook you have. You’ll spend days looking, and you’ll likely not succeed in finding someone.
What Swapzit does is arrange multi-party exchanges, so you send your engineering book to someone who needs it, and another person ships their art book to you. By including more than two people, sometimes up to six, Swapzit makes the likelihood of you getting your book, for just the cost of shipping, an almost certainty, and we make it extremely easy.
Q. Where do you go for help when you need it?
A. Because we’re older professionals, each of the Swapzit founders has built a professional network. We’ve leveraged our networks to formally establish an 11-person advisory board of professionals who are some of the most successful in the marketing, advertising, legal, startup, and IT worlds.
Q. What is the origin of the business?
A. Jake, Lucas, and I met while working for a startup. We routinely talked of starting our own business. Years later, Jake and I were working on the University of Minnesota campus. We’ve all heard about the triple digit percentage increases in the cost of tuition and books. Working on campus, it was impossible for us to not think about the debt these kids were incurring. Over the course of a lunch, Jake challenged me to find a solution. Later that day, Swapzit.com was registered.
Q. What problems does your business solve?
A. The Swapzit algorithm, and Swap-Management protocols, are capable of solving many problems associated with broken markets….READ FULL ARTICLE
You can hear from startups like this one each Wednesday, 9-10 a.m. at the James J. Hill Center during 1 Million Cups St. Paul. The James J. Hill Center is a nonprofit in downtown St. Paul that provides access to business research, educational programming and a place to work. The Hill is open to the public 8AM – 4PM, Monday-Thursday. To keep updated on what startup is presenting next or to apply to present, visit www.JJHill.org.