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Team 7: Joe Cha, Ryan Ollie, Kent Utama, Paul Von Hertsenberg.

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Presentation on theme: "Team 7: Joe Cha, Ryan Ollie, Kent Utama, Paul Von Hertsenberg."— Presentation transcript:

1 Team 7: Joe Cha, Ryan Ollie, Kent Utama, Paul Von Hertsenberg

2  Over 1,500,000 people nationwide commute to work via bicycle  Wasted potential energy generating process http://www.corbisimages.com/Enlargement/42-18916569.html

3  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

4 Good question… http://s7.thisnext.com/media/largest_dimension/625DBBFE.jpg

5  Unobtrusive  Easy to install  Durable  Promotes bike usage  USEFUL

6  Eco-Spin enhances the existing bicycle without obtrusion  Actively recycles energy  Charge USB devices while riding  Encourages biking over driving

7  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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10  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

11  Growing market  Untapped potential No barrier to entry Bicycle commuters out of American population (ACS) 20092008200720062005.55%.48%.45%.40%

12  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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14 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

15 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

16  63% of people agreed to pay $10 more for a “green” product Our Definition  Green means using only non-toxic materials

17  Added cost to the product  Changing batteries changes lifetime NiMH offers 3 years of life NiZn (“green”) offers 1 year of life

18 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

19  Normal plan would take 3.25 year  “Green” would take 4.7 years

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21  ???


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