So as part of my MBA/MSEE, I'm doing some entrepreneurial classes - primarily focused on a LEAN Start-up for this coming term. Step one is to determine the Value Proposition. Of the population of people who have a problem or "pain point" to alleviate, what value do they put on a solution to their problem. The market I'm targeting is dog owners, initially focused on owners who need to house-train a new puppy.
For the purpose of this discussion, my solution is a "Magic Amulet". You buy the Magic Amulet, and it instantly reduces the time it would take you to house-train your dog. There are two ways to give me the info I need for this step of the start-up process.
1) I would pay $XX for Magic Amulet if it reduced my training time by 50%
2) I would pay $200 for Magic Amulet if it reduced my training time by YY%
Magic Amulet is locally-sourced, sustainable, bio-neutral, carbon-free, organic, humane, gluten-free, zero-emissions, and available in your favorite color. So let's assume it meets all of your purchase criteria.
This is more or less a thought-experiment, not an investor pitch or a marketing pitch. I'm just trying to figure out how much improving your dog training is worth. Thanks in advance.
Launching a Start-up: Need inputs for Value Proposition
- Fill
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Re: Launching a Start-up: Need inputs for Value Proposition
Many Decades ago you could do market research by looking at the want adds in magazines like Popular Mechanics. They had an add for a product that you would use to scent mark a newspaper and the puppy would poop on that spot, supposedly. The magic price point back then for an add that would make maximum sales was Five Dollars.
On the Internet a quick perusal shows stuff from 2 to 3 figures. Your poop may vary.
On the Internet a quick perusal shows stuff from 2 to 3 figures. Your poop may vary.
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Re: Launching a Start-up: Need inputs for Value Proposition
Part of the issue is how "reliable" would the claims be? If it seems like "China Special," then I would think it would top out at $20.
- Fill
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Re: Launching a Start-up: Need inputs for Value Proposition
made in America of the highest quality raw amulet material by free-range elves with universal healthcare and safe spaces.BDK wrote:Part of the issue is how "reliable" would the claims be? If it seems like "China Special," then I would think it would top out at $20.
as I mentioned, assume that all of the obstacles to your purchase have been met - we're talking best case scenario.
The next stage is to start testing each assumption against a hypothesis regarding those purchasing factors. But for now assume the perfect Magic Amulet.
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Re: Launching a Start-up: Need inputs for Value Proposition
$50 for 50% reduction.
For $200, I want 90% reduction.
For $200, I want 90% reduction.
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Re: Launching a Start-up: Need inputs for Value Proposition
For $200, it'd better work on children, spouses, and local politicians.
- MiddleAgedKen
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Re: Launching a Start-up: Need inputs for Value Proposition
I suggest researching how much time people currently estimate they put into dog training.
Shop at Traitor Joe's: Just 10% to the Big Guy gets you the whole store and everything in it!
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Re: Launching a Start-up: Need inputs for Value Proposition
Oh, and a bit off topic, if you don't, watch Wall St Week on FBN. Great opportunity to watch lots of very serious sharks