A few items... New offices and short AT&T stock now!

It's been a long time since my last regular post. Lots have happened since - we moved into new offices, almost went to court and got a pet that slowly learns how to talk. To recap...

Centrro moved into new offices around November-ish. Still in Jack London Square about 4 blocks from the old office. Cool building with interesting architecture. Below are some pics...

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And a very inventive shelving system we built with the help of Ikea and the USPS.

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As for the court thing. Our old landlords over at The Commons were refusing to return our security deposit for damages. Interestingly, not for damage to the actual suite itself but for scuff marks on the stairs. What's even more interesting is that we didn't use the stairs to move our things out since we're on the 3rd floor and would be crazy to haul our stuff down two flights of stairs when there's a perfectly good elevator. After some back and forth including a filing with small claims, they sent us a check minus some bullshit minor charges. I'm still pissed but have spent way more time on this issue than I wanted to so we're dropping the claim. For future reference, I do not recommend doing business with Equistone Partners or their building management firm LCB Associates, which showed a total lack of integrity throughout the process. Oh well, live and learn.

Lastly, when we moved into the Ironworks Building, we were a little miffed to learn that Comcast wasn't available as a data option. Basically only AT&T came into the building so we signed up for AT&T phone lines and DSL. BIG MISTAKE. First, the DSL service was horrible - completely unusable. 6MB down and less than 1MB up for 8+ computers brought everyone's connectivity to a crawl. We were using Ooma VOIP phones at the old office but switched to plain land lines to avoid data congestion but even without VOIP across the lines, the service was just way too slow. On top of everything, AT&T service is not cheap. DSL came in at about $29 a month and each of our 8 phone lines costed us about $55+. With tax and fees our monthly bill was running about $550. After much begging and pleading with our new landlords, we were able to get Comcast into the building. Nice fat 50MB down and 10MB up data connection and 8 digital voice lines. Total monthly cost? Less than $300. It blows my mind why AT&T's landline and DSL business are still around. Not only am I paying half as much for better service, AT&T customer service has got to be one of the worst I've encountered. Once my wireless contract is up, I'll be moving that over to Verizon, as well. Farewell and good riddance, AT&T.

Ooma Hub Installed! A story of redemptive Customer Service...

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We were trying to figure out our office phone solution and wanted to get the most cost effective system. Traditional service from AT&T and VOIP providers like Vonage and Comcast seemed pretty cost prohibitive for business lines (about $35-$50 a month per line). I read about Ooma a while back and didn't really think much of them. At the time, it seemed like a case of too good to be true. Slowly, a few folks I knew started buying Ooma's and were getting great results. We figured it was a good solution to pay $200 or so once versus up to $600 every year for phone service.

We decided to dip our foot in the pool by getting a used Ooma Hub (versus a new Telo, the latest model). We found a great deal on eBay for under $200 and once the device arrived, we figured it was going to be a pretty easy setup. Alas, no. Since the Hub was previously owned, it was still registered to the previous owner and would not allow us to activate it. After a frustrating hour plus call with Ooma Customer Service, I still wasn't able to activate the phone and had to be escalated to Tier 2 for further assistance. I promptly wrote a harsh email to Ooma's PR department stating my disgust with their Customer Service.

What happened next is a classic story of how a company's image can be turned completely around after a horrible customer experience. Ooma's VP of Corporate Marketing responded very quickly and connected me directly to the head of the Customer Service group, Roy. I received a call from him the next day and he made no excuses to the poor service I had gotten and assured me he would personally handle my issue. Lo and behold, a couple of hours later I was able to activate my Ooma and Roy even followed up after he saw my activation to make sure everything was working properly. My opinion of Ooma as a company is probably higher now than it was before I bought the machine. We will probably setup all our employees with Ooma Telo's and will most likely get one for my home. With great people like Roy and Tami on the team coupled with a great product, I will have no reservations promoting their service to others.

Shots of the new office

So it took me a few days, but here are some shots of the new office. In the week or so that we've been here, the building was renamed from the original "The London Building" at 160 Franklin to now being known as "The Commons at Jack London Square" as to incorporate the three buildings on the block (160 Franklin, 140 Franklin, and 384 Embarcadero West). Here are some exterior shots of the new mural painted alongside the back of the three buildings:

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As I said earlier, the inside is currently being renovated to reflect a more minimalistic industrial design. The great thing is the original brick is still maintained. Here are some hallway and stairwell shots.

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Our suite is pretty simple. Couple of private offices and a large open area. We're not fans of private offices so we're using one as a conference room and another may house 2-3 folks. Our landlords at Equistone were nice enough to provide us with some desks, chairs, and a conference table. Still need to get some more desks for the open area and some whiteboards. Not entirely visible are the four large skylights that bathe the suite in natural light. For most of the day, we never turn on any of the fluorescents. That'll probably change as we enter the winter months but the spring/summer months should provide enough natural light for the entire day. An amazing suite in the building that was recently renovated has glass walls for each of the offices so the natural light flows from the ceiling and the office windows. Maybe if we expand, we'll ask for these TI's in our next space.

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Part of the charm of the neighborhood is that we're in the heart of the Produce District. Below is a shot from our conference room of the warehouses just outside of the building. From midnight to about 10am, there is a bustling produce trade with goods being trucked in from all across California and the Port of Oakland. Small grocery store owners and restaurants come by to get their produce for the day. Taco trucks and other street food vendors set up shop during this busy time to support the workers in the area.

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Finally, some pictures of our view outside of the conference room of Downtown Oakland and the Oakland Hills.

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Centrro is moving again!

It seems like only yesterday that we moved but now we're at it again. After the BarNone acquisition, we were starting to get very cramped in our current shared office space. Thankfully, we were able to sign a lease in a great building just a few blocks away. The London Building is just across the street from the Barnes and Noble in Jack London Square, right in the heart of the produce district. It's been newly renovated and is LEED certified with the latest green features. Our top floor suite has a ton of natural light and beautiful exposed brick on one side. Our official move in date is Monday so I'll snap a few shots then and post here.

Remember the Pets.com Sock Puppet? He's rolling with us now.

Ah, an icon of the great internet bubble of the late 1990's. Back in the day, nothing signaled that you "arrived" on the internet scene like a Super Bowl commercial. Start-ups plunged a good chunk of their funding into Super Bowl ads hoping for the exposure and eventually IPO to riches. One of these ill-fated companies was Pets.com and their Sock Puppet. After blowing through about $300M of capital, Pets.com went under in November of 2000, just under two years after it started. As part of the fire sale, BarNone, an online marketer specializing in auto finance and auto sales leads for less than stellar credit, became the new home of the sock puppet and coined the phrase "Everybody deserves a second chance!" as their slogan. For a time BarNone was doing quite well and then took a big hit (who didn't take a hit?) when the current recession hit full force in 2008-2009.

Fast forward to today, we are announcing that we have purchased the BarNone unit from First Advantage Corp. It's been an exhausting couple of months (I've taken a lot of flights to Baltimore and San Diego) but well worth it. We're getting a great brand in the auto dealer community plus a product that once the auto sector picks up again, will be poised for great success. Thanks to all the folks on the First Advantage team plus much thanks to the BarNone staff who continue to help us during the integration phase. We look forward to returning the Sock Puppet to its glory of yesteryear (minus the Super Bowl ads).

Cafe afternoon and Oakland office buildings

It's been a while since I've been able to get away from the office for an afternoon at the cafe. Today was perfect cafe weather if not for the sun being blocked out by the APL building. Centrro's first offices were at 22nd and Broadway at the BroadLake Plaza Building, a standard eight story office building in what is now called the Uptown District. BTW, what's up with the naming of Oakland's districts? Guess it's just another phase of the gentrification of the city (not 100% bad, but not 100% good either). More on that another time. At any rate, one of the consistent things we noticed was that even on sunny days, it always seemed dark outside of the downtown buildings except for the hours right around high noon. Contrast that with the Old Warehouse District where there are very few buildings over five stories and you can get decent sunlight on the sidewalk for most of the day. Can't wait for Jack London Market to open up so I can get my cafe fix within closer walking distance.

The good and the bad with shared office space

I've mentioned before that Centrro uses shared office space. It's great because it's month to month, relatively cheap, and allows us to make use of conference rooms, a reception desk, a kitchen, and free internet access. Well today, you can scratch one of those off the list. Internet access has been down all morning so I packed up and headed to Peet's. It's actually a great day outside so I don't mind.
 
The one other benefit of shared office space is that you get to meet some really interesting people outside your company. For instance, one of our cube mates is a lawyer for the adult entertainment industry. How cool is that? For that reason, I think places like JellyDesk are great. If we didn't have partner/board meetings, I'd be fine working in that environment.

A good start-up lesson on how to beat your bigger competition

It's strange how themes seem to emerge in our daily lives. The History Channel had a program about Sun Tzu's Art of War a few days ago (interesting if not a little campy with the graphics and re-enactments). Then a friend forwards this interesting article about junior girls basketball from the New Yorker. They both highlight a specific tenant of competition, be it sports or war. Always attack your enemies weaknesses and never engage them in the things they do exceptionally well.
 
Centrro is in a very large, very competitive market that is currently dominated by much larger players with much larger war chests. We'll never be able to out spend out competition but instead of spending $1.00 to make $1.10 (of course, multiply that by millions), we've decided to take the route of spending $1.00 to make $3.00 or, in some cases, $6.00. We do this by engaging in certain channels that our competitors either disregard or cannot efficiently play in. Over time, this efficiency will allow us to grow large enough to enter more mainstream channels but still carry over the learnings and processes from our best channels.
 
The other thing I found interesting about the New Yorker article was that instead of adapting and innovating, the Goliaths tend to force the Davids to play their game by their rules. How many times have we seen the music industry sue their way out of an issue? Now the movie industry is doing the same. Kudos to Redwood City girls basketball team and their coaches for thinking outside the box!