Week 11
This week, we contacted Professor Maria-Paz Gutierrez, an associate professor who was a lead researcher for the project. She told us to contact a graduate student for more information and that we should research by reading papers and watching videos. She mentioned that it is essentially a solar water system with photovoltaics. Currently, there exists no system that saves & recycles water while also generating energy at the same time. To figure out the cost, we would calculate how much each individual system costs and compare those costs. The biggest difference is that we are not only having an economic benefit for the user but the overall infrastructure of the city. The value of this varies based on the building, such as commercial or public investments. She also gave us a link that explains how the technology works. https://www.youtube.com/watch?v=nS_HgfanRjA. Ultimately, this week we focus on finalizing costs and figuring how our revenue stream works. Essentially, we want to know the production price, the markup percentage, and retail price. With this, we can figure out the return on investment for our system to calculate when we can breakeven and profit. We also are finalizing our long term strategy—whether we want to scale based on location, customer base, or product diversification.
I like how with regards to pricing strategy you considered so many detailed breakdowns - such as production cost, markup percentage, and retail price. I just recommend also looking at what price other competitors are putting at, and if there are no competitors, see if you're selling a unique product and is meeting direct need of consumers - and if you are, you could probably put the price up a little bit higher than normal. Well done!
ReplyDeleteAnother thing to keep in mind when determining price is that if you going to be manufacturing these in bulk or even across seas, the equipment may be cheaper. Our team is currently in the same position as yours as we are figuring out how to price our product.
ReplyDeleteHi! What are your ideas on scaling long-term based on product diversification? I think this could be a great idea but much more difficult than scaling by location.
ReplyDeleteAnother thing to consider is production price and how that varies by location, especially if you are planning to expand long-term.
I think you're definitely at the most difficult stage of your project, but since your patent is so unique and guaranteed to be beneficial and appealing, you're in a great place. I would recommend reaching out to solar and photovoltaic industries for pricing strategies (less so marketing because your product can sell itself!) and see if you'd be able to have a competitive edge on them by cutting the cost, since the current costs are incredibly high.
ReplyDeleteWow, I really like the uniqueness of your patent! Have you looked into how much energy this technology will provide? Who will you be selling this to, and will you be partnering with any established company to sell your product? I suggest working on your financial forecast model to determine costs and expected revenue to determine the amount of funding you will need.
ReplyDeleteMy team is also in a tough spot with pricing-- You mentioned public infrastructure, which I think is an interesting space to research. I would ask what the lifespan of your structure is and compare it to how often current structures have to be replaced-- perhaps this can be a comparison factor while you look into pricing more.
ReplyDeleteHey there! Quick question, since your product not only has an economic benefit for the user but also the overall infrastructure of the city, do you think you could work with cities to implement your product? I feel like if you have the support of the city then that will build a lot of trust for your company and individual consumers would be more likely to purchase your product. Just an idea!
ReplyDeleteI think you guys should try to figure out at what point of the value chain you want to focus your business. Bringing your product all the way into the buildings of your customers may be too big of an effort. I think the sweet spot would be finding manufacturers who create the product, and then sell it to distributors, who are gonna sell it to retailers, who are gonna sell it to the public. Or you can sell to the public sector. Or to large construction companies that can integrate your system into their business. The key takeaway is you need to define your target customer, and not spread yourself too thin.
ReplyDeleteHi. As mentioned, it offers a lot of value. I'm really interested in seeing how you work in your business model. Who are going to be your specific customers? You mention that the city infrastructure would improve thanks to your startup idea, so city management can work as a key partner. My team also finds it hard to calculate the costs, specially because there is nothing like it in the market. Good luck!
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