The founders do not plan to sell the product directly to consumers, so they are currently beginning to reach out to businesses that would be potential distributers of the product. The firm would ultimately like to form a partnership with an outdoor sporting store such as REI, Gander Mountain, Cabela’s, or Eastern Mountain Sports. This would be the best way to reach the target market of consumers age 18-35 who are active campers and hikers. Additionally, being placed in an outdoor sporting goods store delivers the message the brand hopes to send, as it is being marketed as a product specifically for this demographic. There is additionally a possibility that a partnership could be beneficial as many of these companies have shipping materials and methods already in place. If nd, this decision will prove to be smart and beneficial since these companies have their own shipping methods and materials. Therefore, we can save some money in that regard. If a partnership is unable to be reached, the founders plan to continue to market the product to outdoor sporting goods stores, as this would be the best outlet for the product to be sold. If the products are unable to be supplied to the initially companies of the founder’s preference, they plan to market to superstores, such as Target, Walmart, K-Mart, and Meijer. These superstores have outdoors departments, which would still reach the intended demographic. Additionally, the product is not above the price of most other mobile phone chargers, so it would be a suitable product in such stores. The founders expect the cost to produce each mobile phone charger to be approximately $10 to $15.
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The wholesale cost of plastic is approximately $0.15 per pound, and approximately $0.25 per yard of thin copper gauge wire. The battery is the most expensive component of the product to produce, which will cost approximately $2-$5 per battery depending on the final size of the mobile charger itself. The firm plans to initially manufacture one-thousand Never Dead self-charging phone chargers. If sold at $30 per unit, minimally (according to current figures for patents and production) 667 to 834 mobile phone chargers would need to be sold to break even before any profit. This is not including the price cut that the retail stores will require from the firm in order for it to sell the products through their stores. For example, Best Buy takes 2% out of all commissions for electronic accessories sold in their stores (Best Buy) and REI asks for a 5% commission from all sales (AvantLink). Packaging costs must also be considered and paid for before the product can even be sold in stores or to consumers. 5% commission would bring the price down by $1.50 for the firm. Packaging can range from minimal amounts to $3.00 per product depending on which route the firm decides to go. Assuming the most expensive route, the firm’s profits per product would be $10.50. In order to break in, the firm would need to sell minimally 1,005 to 2,381 mobile phone chargers to break even. With all costs considered, the firm will likely need to obtain a substantial loan to get production started. The founders first course of action, since they are young and have limited credit histories, would be to turn to family and friends. Another technique that will be used is crowd-funding. This could additionally be a good form of advertising. However, this will most likely only work once the firm has built some public recognition for our chargers. Another possibility, as the founders developed a technological product, would be to enter an entrepreneurial competition. Winning a competition would provide necessary funds to get the business started There are a number of entrepreneurial competitions, some of which exclusively for new tech products or ideas. A couple such examples would include TechCrunch Disrupt (Startup Battlefield) and the Qprize Qualcomm Venture Seed Investment Competition (Mays). If these options do not pan out, the founders also are currently in the process of building their credit with the hopes of the ability to obtain a bank loan. This option will most likely take a longer period of time which doesn't make it ideal, but is a stable course of action to fall back on. The founders consider this to be a salary-substitute firm, meaning that the founders
The wholesale cost of plastic is approximately $0.15 per pound, and approximately $0.25 per yard of thin copper gauge wire. The battery is the most expensive component of the product to produce, which will cost approximately $2-$5 per battery depending on the final size of the mobile charger itself. The firm plans to initially manufacture one-thousand Never Dead self-charging phone chargers. If sold at $30 per unit, minimally (according to current figures for patents and production) 667 to 834 mobile phone chargers would need to be sold to break even before any profit. This is not including the price cut that the retail stores will require from the firm in order for it to sell the products through their stores. For example, Best Buy takes 2% out of all commissions for electronic accessories sold in their stores (Best Buy) and REI asks for a 5% commission from all sales (AvantLink). Packaging costs must also be considered and paid for before the product can even be sold in stores or to consumers. 5% commission would bring the price down by $1.50 for the firm. Packaging can range from minimal amounts to $3.00 per product depending on which route the firm decides to go. Assuming the most expensive route, the firm’s profits per product would be $10.50. In order to break in, the firm would need to sell minimally 1,005 to 2,381 mobile phone chargers to break even. With all costs considered, the firm will likely need to obtain a substantial loan to get production started. The founders first course of action, since they are young and have limited credit histories, would be to turn to family and friends. Another technique that will be used is crowd-funding. This could additionally be a good form of advertising. However, this will most likely only work once the firm has built some public recognition for our chargers. Another possibility, as the founders developed a technological product, would be to enter an entrepreneurial competition. Winning a competition would provide necessary funds to get the business started There are a number of entrepreneurial competitions, some of which exclusively for new tech products or ideas. A couple such examples would include TechCrunch Disrupt (Startup Battlefield) and the Qprize Qualcomm Venture Seed Investment Competition (Mays). If these options do not pan out, the founders also are currently in the process of building their credit with the hopes of the ability to obtain a bank loan. This option will most likely take a longer period of time which doesn't make it ideal, but is a stable course of action to fall back on. The founders consider this to be a salary-substitute firm, meaning that the founders