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Proposed Experiment

[Proposed Experiment for January] FIJI FUEL DEC 18 - PRICING STRUCTURE

by
Haziq Ahmed
Haziq Ahmed | 2 months ago | in Sustainable Fuel Consulting

Lean Phase: Cost Structure, Revenue

Assumption: That a customer segment exists in Fiji that is willing to pay $90 for Buka Stove 4.0 that is made professionally by an engineering company and incorporates the customer feedback.

 

Time Box: 4 weeks

Key Metrics:

Number of people willing to buy the stoves for $90

Number of stoves sold for $90

 

Success Criteria

Green Light Point – All stoves sold at $90 price point

Green Light Proceed: Sign contracts with manufacturing company Lincoln Refrigerators and solidify the manufacturing element of supply chain management

 

Orange Light Point -  30% - 90% of stoves sold at $90

Orange Light optimise:  Negotiate with Lincoln Refrigerators to decrease the manufacturing costs from $44/stove

 

Red Light Point – Less than 30% stoves sold at $70

Red Light Failure: Find alternative manufacturing options with cheaper manufacturing cost and potential compromise on stove quality

 

Experiment build:

  • 30 stoves manufactured from Lincoln at $44/stove (Inclusive of all raw materials and labour costs)
  • Pricing increase of stoves from $60 to $90
  • Supply stoves to retailers and villages
  • Handle any objections from customers and understand why customers aren't able to pay $90
  • Set up payment plans if necessary (in collaboration with SoCon)
  • Get MOU signed from Lincoln to potentially decrease manufacturing costs if bulk stoves are manufactured at in Jan and Feb
edited on 24th December 2018, 00:12 by Haziq Ahmed

Haziq Ahmed 2 months ago

Status label added: Proposed Experiment

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