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[PROPOSED EXPERIMENT]: SCALABILITY (Currency Testing)- FarmEd Fiji January 2019

by
Justin Chun
+3
Justin Chun | 2 weeks ago | in FarmEd

Lean Phase: Solution [MVP/Prototyping (Currency Testing)]

 

Time Box:

3 weeks

 

Assumptions:

  1. Businesses, organisations and non-government organisations (stakeholders) are willing to distribute the app at a given commission based on the amount that they are willing to be paid for. 

  2. These businesses are willing to negotiate alternative price points and commission rates. 

Goal:

To organise meetings with 15 different businesses and discuss price points/ possible commission rates for stakeholders to distribute the FarmEd mobile app. 

Key Metric:

  • How many stakeholders are willing to distribute the FarmEd app to their network of farmers at a given commission rate. 
  • How many stakeholders are willing to negotiate a price point/fixed commission.

Success Metric:

Green Light:

  • Over 50% of stakeholders are willing to distribute the FarmEd app to their network of farmers at a given commission rate. 
  • 60% of stakeholders that are willing to distribute but are not satisfied with the given price are still wanting to negotiate the commission rate.

Orange Light:

  • 20-50% of stakeholders are willing to distribute the app at a given commission to their network of farmers. 
  • 40% of stakeholders that are still wanting to negotiate on the commission rates. 

Red Light:

  • Less than 20% of stakeholders are willing to distribute out product at the given commission rate.
  • Less that 30% of stakeholders are not willing to negotiate the commission/price point. 

Failure Protocol:

  • Pricing structure/commission rates must be reassessed based on feedback provided by stakeholders. 
  • Address underlying concerns that may cause the lack of willingness to distribute the app (E.g issues of trust, poor quality of prototype etc) 

Implications of Failure Protocol

  • Termination of further relationships between stakeholders. 
  • Loss of stakeholder's trust in our integrity and ability to deliver value for money.

 

Experiment build:   

Pre-Departure

  • Use hubspot and determine the number of businesses that have had previous contact with the FarmEd team
  • Determine the number of farmers each business/stakeholders has either through a survey or during a pitch. 
  • Set a minimum commission rate for the app, such that businesses don’t bargain below that value and develop a pricing scheme.
  • Have a detailed incremental commission rate breakdown tailored to each business if necessary. 

During

  • Engage with Stakeholders, build rapport through business meetings and pitch the value of the FarmEd application.  
  • Propose commission rates for the distribution of the application to their network of farmers. 
  • Ask questions via survey in regards to willingness to distribute our product and the amount that they are willing to be paid for and the commission rate that they are willing to receive. 
  • Seek feedback if necessary in terms of commission rates and willingness to distribute the app. 

Post-Departure

  • Move all information and log in activity into HubSpot. (This includes contact details (if not there already), meeting minutes, feedback log, future goals/meetings, pricing deals that were discussed/made)
  • Send an email of appreciation thanking the company for their time and effort during the meeting.
  • Create a spreadsheet, record all feedback and analyse the stakeholder's willingness to distribute our product and also commission rate. 
  • The team should work around all the feedback and perform a cost analysis of commission rates.  
edited on 21st January 2019, 04:01 by Michel Chan

James Balzer 1 week ago

It's good to see that you're assessing the scalability of FarmEd as per other organisations.

Have you decided a price point which you're going to use to pitch to these organisations? If so, what was it, and how did you decide that number? Likewise, have you done the econometrics associated with the discount that you've proposed? It's important to actually be able to justify these numbers as per financial modelling instead of just pulling them out of thin air.

Looking forward to hearing your response.

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