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Published byLydia O’Connor’ Modified over 9 years ago
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Team 7: Joe Cha, Ryan Ollie, Kent Utama, Paul Von Hertsenberg
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Over 1,500,000 people nationwide commute to work via bicycle Wasted potential energy generating process http://www.corbisimages.com/Enlargement/42-18916569.html
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Stationary Powers a headlight Requires a special tire http://www.econvergence.net/images/electron.jpg http://www.bikedenver.org/wp- content/uploads/2007/02/dynamo.gif
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Good question… http://s7.thisnext.com/media/largest_dimension/625DBBFE.jpg
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Unobtrusive Easy to install Durable Promotes bike usage USEFUL
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Eco-Spin enhances the existing bicycle without obtrusion Actively recycles energy Charge USB devices while riding Encourages biking over driving
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Bike commuters In 2008,.55% of Americans commuted to work on bicycles (ACS 2009) Our survey results show that largest consumer market will consist of ages of 18 to 30 cities/college towns worldwide Eco-Conscious People Also appealing to those who enjoy “recycling” energy. “Green” people who actively look for ways to save the environment
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Over 1,500,000 people commute to work on bikes everyday Target maximum quantity of 800,000 (~53%) Conservative ceiling considering appeal to non- commuters as well Commuters only make up 10% of adult bikers Appealing to “green” bikers Product will create it’s own market
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Growing market Untapped potential No barrier to entry Bicycle commuters out of American population (ACS) 20092008200720062005.55%.48%.45%.40%
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Start with cities in California The next year target the West Coast In year 3, target overall commuter market with 53% market share 800,000 people
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Part NameMaterialMat costadd costTotal cost Cylindrical Rolleraluminum11 Roller coverrubber0.50.10.6 Spur Gearsaluminum40.14.1 Roller housing with mountplastic10.31.3 DC generatorMixed22 Battery housingplastic10.31.3 AA BatteryNiMH88 PCBMixed55 Basic wiringWires0.20.10.3 Mount for housingaluminum10.11.1 Packagingcardboard0.5 Total25.2
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First Year Sunk Costs Design Engineering Manufacturing Process Development Manufacturing Equipment Purchase and initial tooling Injection molding, tooling, soldering, Testing Equipment Fixed Variable Costs Employees Marketing Cleaning and equipment maintenance Rent for 8500 sq. ft facility Utilities Insurance Safety Miscellaneous expenses $720,000 $500,000 $200,000 $30,000 $42,000 $11,000 $75,000 $25,000 $20,000_____ $900,000
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63% of people agreed to pay $10 more for a “green” product Our Definition Green means using only non-toxic materials
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Added cost to the product Changing batteries changes lifetime NiMH offers 3 years of life NiZn (“green”) offers 1 year of life
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Normal“Green” First year cost ($)720,000800,000 Fixed Cost ($)900,000950,000 Variable cost ($)25.231.4 Selling Price ($)3545 Annual Income ($)1,150,000 Interest Rate (%)66
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Normal plan would take 3.25 year “Green” would take 4.7 years
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