projecteverest

Proposed Experiment

[Experiment Proposal]: Price Point Testing of the Buka 5.1.

Lean Phase: Revenue Streams, Customer Segmentation (Offer testing/Currency Testing)

 

Assumption: Determine an appropriate price point for the Bukka 5.1

  1. That the Buka 5.1 can be sold for $ ### FJD  

 

Time Box: 2 weeks

 

Key Metrics:

  1. Percentage of successful offer tests over a particular price point. A successful offer is defined as one where:
    1. Upon mentioning price and payment plans during the interview process, the interviewee engages in active discussion, whereby they seem genuinely interested at a particular price point.
    2. Where the interviewee is inclined to reveal:
      1. Why they believe the product is valued at the agreed upon price.
      2. Why they are not willing to pay a greater amount.
    1. Is inclined to note down their personal details and agreed upon price afterward.

 

Success point -

  • 70% of offer tests are successful for a price over $ ## FJD.
  • 80% of customers can elaborate on why they settled for the agreed price, and why they believe it is not worth more.

 

Green Light

  • Explore the financial viability of selling the Buka 5.1 for $ ## FJD.
  • Explore the potential of improving the identified weaknesses, and repeating price point testing for a higher value.

 

Orange Light Range -

  • 40-69% of offer tests are successful over a  price point of $ ## FJD.
  • 50-79% of customers can elaborate on why they settled for the agreed price, and why they believe it is not worth more.

 

Orange Light -

  • Reassess the price point based on observations made during the execution of this experiment.
  • Explore the potential of improving the identified weaknesses, and repeating price point testing.
  • Improve pitch.

 

Failure Point -

  • Less than 40% of offer tests are successful over a  price point of $ ## FJD.
  • Less than 50% of customers can elaborate on why they settled for the agreed price, and why they believe it is not worth more.

 

Red Light -

  • Reassess the price point based on observations made during the execution of this experiment.
  • Reassess value proposition
  • Reassess customer segments

Experiment build:

  • Organise SoCon group to inform us about loans and micro financing available for Buka 5.1 sales.
  • Assess the value added of the 5.1 to 4.0 through testing (see other experiment) and quantify this in monetary value, giving a conservative pricing estimate for the 5.1. 
  • Design and practise a pitch for the Buka 5.1, discussing what Project Everest does, how the Buka stove achieves fuel sustainability, and the available SoCon payment plan options.
  • Visit Villages and demonstrate the Buka 5.1, outlining the improvements from the 4.0. 
  • Interview the locals regardless of income, Offering the Buka 5.1 for $ ## FJD, Reactions will be assessed to ensure they are genuinely interested in purchasing for the negotiated price, indicating the success of the offer test. Record their response (yes/no)
  • Discuss with the locals why they believe the product is well valued at $ ## FJD., or why they believe it is not worth that much.
  • Utilise various distribution channels, such as markets, further village visits, and discussion with retailers, to continue collecting data. 
  • Collate data regarding the responses of villagers after demonstration, alongside the data collected from the distribution channels. 
  • Figure out what the best price would be to sell the Buka 5.1, and if that data allows the implementation premium Buka 5.1.
edited on 25th January 2019, 00:01 by Edward Baldry

Jess Riley 2 months ago

Status label added: Proposed Experiment

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