projecteverest

Experiment adopted

[Feb 19] Sales Agent Systems (Channels + Revenue Streams) - Fuel Fiji

Lean Phase: Channels & Revenue Streams

Assumption: Sales agents can order, purchase, and collect the Buka Dragon as a part of our autonomous business model

Time Box: 2 weeks

Key Metrics:

  • Number of MOUs signed by Sales Agents
  • Result of ChatBot experiment
  • Percentage of Sales Agents purchasing stoves to sell
  • Percentage of Sales Agents obtaining stoves to sell

Green Light

  • Sales agents are deemed a viable channel and revenue stream for the business model
  • Recruit more sales agents and scale up

Success Point

  • 5 or more MOUs signed by Sales Agents
  • 100% of Sales Agents purchasing stoves to sell
  • 100% of Sales Agents obtaining stoves to sell

Orange Light - Optimise

  • Continue search for potential Sales Agents
  • Streamline stove payment system through more empathising with Sales Agents
  • Streamline stove delivery system through communication with the manufacturer and Sales Agents

Failure Point

  • Less than 2 MOUs signed by Sales Agents
  • 20% or less of signed Sales Agents deposit money to purchase the stove
  • 20% or less of signed Sales Agents obtain stoves to sell

Red Light - Failure Protocol

Determine alternative distribution channel revenue stream. Possible considerations include:

  • More effort into retailing Buka Stoves
  • Door to door delivery of Buka Stoves

 

Experiment Build:

Background

Sales agents were suggested to us by the Jan team as a possible distribution channel for our latest product, the Buka Dragon. Amidst the process of securing the manufacturer we are in the process of securing sales agents to purchase the stove at wholesale price and distribute independently. We have high expectations for sales agents as a Channel and Revenue Stream from initial interactions and have had high interest expressed.

We are looking to obtain 5 MOU’s as we believe this will be enough to distribute an initial manufacturing order of 20-30 stoves with additional retailers also distributing Buka Stoves.

Steps

1. Search for potential sales agents via Sigatoka Market Stall and contacting nearby Hotels and Tour Companies.

2. Gauge interest in becoming sales agents by following up and meeting with the interested parties.

3. Get MOUs signed by new sales agents and set them up to use the Facebook ChatBot ensuring that they:

  • Have a smartphone.
  • Are able to make payments via online or cheque deposit.
  • Have a specified location for the stoves to be dropped off/picked up from.

4. Have the new sales agents make an order for stoves and deposit the money into the Project Everest account.

5. Have the sales agents specify a location to collect the stoves and obtain the stoves for on-sale autonomously.

edited on 20th February 2019, 21:02 by Harry O'Donnell

Haziq Ahmed 2 months ago

Hey Harry,

Really great to see the sales agent experiment getting into its final stages, I just had a few questions regarding it

1) Are the sales agent being paid any commission to sell the Buka Stove or are they just buying the stove from PEV and then selling them on, if this is the case are you looking at capping the price to make sure the sales agent aren't selling it at a ridiculous amount?

2) Will the sales agent be given any training on how to pitch the stoves and its value proposition?

3) It also seems that this experiment is reliant on the success of Chatbot experiment, what are the alternatives just in case the other experiment results in a failure point?

Reply 1

Timothy Phillips 2 months ago

Hi Hazik, happy to answer these for you!

Reply 0

Timothy Phillips 2 months ago

Firstly, the aim with the Sales Agents is to allow them to purchase them in full rather than establishing a commission rate (we’ve found this to be more tentative and risky). We will then reduce the price for them so that they can I sell at the price determined by the cost analysis. If they have the ability to purchase higher quantity orders, further reductions will be added to the price as an incentive.

Reply 0

Timothy Phillips 2 months ago

Secondly, as part of the initial transaction between Sales Agents and PEV, we will be providing them with a workshop as well as information regarding how to pitch the stove, fix the stove, and locations of villagers who have expressed interest in the stoves.

Reply 0

Timothy Phillips 2 months ago

Lastly, you’re very right the chatbot. An alternative we will be looking towards if the chatbot is unsuccessful it to have direct contact with our Project Buka Facebook page, or through email. If this is the case we will get the follow months team to look into other avenues to optimise this ordering process.

Reply 1

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Haziq Ahmed 1 week ago

Status label added: Experiment adopted

Reply 0

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