Commercializing the Kunst 1601

659 Words Jul 24th, 2014 3 Pages
Commercializing The Kunst 1600 Dry Piston Vacuum Pump

What are the major, quantifiable value and price elements associated with the Kunst 1600?

* No oil change required in the Kunst 1600, which saves time and money.
Oil change cost = cost of oil + labor + towel + soap + disposal
Oil change cost = 8+15+0.5+0.15+1.25 = $24.9

* Kunst 1600 has a life of 6 years; 2.5 times longer than traditional pumps. So it reduces replacement costs.

* As Kunst 1600 is made from aluminum, it is lighter by 5-10 pounds.

What additional value placeholders, elements not presently quantified, merit consideration in your value model?

* Customers should know that Kunst has been trusted brand name in the scientific, engineering &
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This would increase their profit.

Incremental profit = additional jobs per week x profit per job x no of weeks in a season

Incremental Profit for Home Refrigerator Repair Segment = 2 x $30 x 12 = $720
Incremental Profit for Light Commercial Refrigerator Segment = 1 x $30 x 52 = $1560

| Residential AC Repair | Home Refrigerator Repair | Light Commercial Refrigerator | Oil change | $318 | $153.30 | $207.30 | Additional profit | $0 | $720 | $1560 | Total Value | $318 | $873.30 | $1767.30 |

Using your model, select a target market segment for commercialization efforts.

* From the above analysis it is proven that Light Commercial Refrigerator Segment offers the
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