MRiabov
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Sup TFLF.
So I’m in the process of developing a brand-new machine, FullCook - a machine that can cook anything you want with a press of a button. So if you don’t fancy cooking, this machine will peel, cut, boil, fry and mash for you - doing all the cooking while all you need to do is just insert the food, select the recipe and press “start” (and wait for 30-60 minutes until it cooks the food of your choice).
So I’ve developed most of the machine, maybe excluding electricity and some minor important parts.
I already know how to market it, because I’ve spoken to some businesses which may need it, to some consumers (it can save you an hour every day on cooking!), but I need to start thinking about pricing.
All I know for now is that each manufactured machine will cost me about 400-500$ to produce, maybe 600-700$.
The selling price which I thought of initially would be 1200$, which is maybe 20% profit margin. But then I’ve heard of how Elon Musk has done Tesla. He has started with a high-price, very premium Tesla Roadster, which has given him a lot of money with comparably low investment (lower manufacturing volumes need less upfront investment). It has also set up Tesla as an object of desire, as it was perceived to be expensive.
Elon has then released upper class vehicles with lower price, but it wasn’t as exclusive as Roadster.
When he had even more money from that, he transitioned into medium-class vehicles - incredible volumes, but the profit margin is not really outstanding.
I’m not just handicapped by brand strategy, but also by cash. If I’ll earn 3000$ somewhere, then spend 1500$ for the first two prototypes, I’ll have 1500$ more to spend on ads. It’s only about 750 clicks. But from whom?
So here’s what my options are:
I will still need to consider it myself. But what do you think I should pick? Will it impact the future brand?
So I’m in the process of developing a brand-new machine, FullCook - a machine that can cook anything you want with a press of a button. So if you don’t fancy cooking, this machine will peel, cut, boil, fry and mash for you - doing all the cooking while all you need to do is just insert the food, select the recipe and press “start” (and wait for 30-60 minutes until it cooks the food of your choice).
So I’ve developed most of the machine, maybe excluding electricity and some minor important parts.
I already know how to market it, because I’ve spoken to some businesses which may need it, to some consumers (it can save you an hour every day on cooking!), but I need to start thinking about pricing.
All I know for now is that each manufactured machine will cost me about 400-500$ to produce, maybe 600-700$.
The selling price which I thought of initially would be 1200$, which is maybe 20% profit margin. But then I’ve heard of how Elon Musk has done Tesla. He has started with a high-price, very premium Tesla Roadster, which has given him a lot of money with comparably low investment (lower manufacturing volumes need less upfront investment). It has also set up Tesla as an object of desire, as it was perceived to be expensive.
Elon has then released upper class vehicles with lower price, but it wasn’t as exclusive as Roadster.
When he had even more money from that, he transitioned into medium-class vehicles - incredible volumes, but the profit margin is not really outstanding.
I’m not just handicapped by brand strategy, but also by cash. If I’ll earn 3000$ somewhere, then spend 1500$ for the first two prototypes, I’ll have 1500$ more to spend on ads. It’s only about 750 clicks. But from whom?
So here’s what my options are:
- I can go for the top 5% men, where I can set, maybe 3000-4000$ (numbers out of thin air). But will they buy it?
- Top 20%, and 1999$
- Or I can set the machine to be the price of an iPhone (1200$), and go for the top 50%.
I will still need to consider it myself. But what do you think I should pick? Will it impact the future brand?
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