This document discusses potential revenue models for a company called TransMenu that provides translated restaurant menus via a mobile app. It identifies several pricing models: charging restaurants a fixed price per language translated; a quarterly maintenance/update fee for restaurants; advertising on the app; selling the menu database to third parties; and a freemium model with a free basic app and premium account. It then outlines hypotheses and tests conducted to validate the viability of some of these models, finding support for per-language pricing, a quarterly fee, and consumers paying $0.99 for a premium app version. Finally, it previews an MVP website and prototype menu to obtain user feedback.
2. Identification of Revenue Sources &
Pricing Models for TransMenu
26.09.14 FreshEntrepreneurs2014 2
Transaction
(Value Based Pricing): Customers pay fixed price per language
Subscription
(Value Based Pricing):
Customers pay quarterly Maintenance fee
(software updates & menu changes), 5-7€
Advertising
(Competitive
Volume Pricing):
Network-effect: Restaurant pay to place
advertisement on end-customer app
Franchising
(Competitive Pricing): Strategy of Internationalization
Asset Sale
(Value Based Pricing):
Sale of restaurant menu database to third
parties
Freemium
(Value Based Pricing):
Free app for end-customer, Premium for
account (recommendations, ratings etc.)
3. Component: Revenue Streams
Hypothesis Restaurants will be willing to pay a fixed “menu” price
for each translation language (value based pricing).
Test Conduct 24 interviews with restaurants, which are
located within touristic areas and offer medium to high
priced food & beverage.
Validation If survey results show at least 65% of restaurant
owners would accept a fixed price per language.
Result 70% (17/24) of participants confirmed they would be
willing to pay fixed a value based “menu” price for
each translation language and therefore the
hypothesis can be considered as valid.
26.09.14 3FreshEntrepreneurs2014
Hypothesis - Transaction
4. Component: Revenue Streams
Hypothesis Restaurants will be willing to pay a quarterly
maintenance / change fee (value based pricing).
Test Conduct 5 follow-up interviews with restaurants,
which are located within touristic areas and offer
medium to high priced food & beverage.
Validation If survey results show at least 65% of restaurant
owners would accept a value based fixed quarterly
maintenance fee.
Result 80 % (4/5) participants stated they would be willing to
pay quarterly maintenance / change fee and therefore
the hypothesis can be considered as valid.
26.09.14 4FreshEntrepreneurs2014
Hypothesis - Subscription
5. Component: Revenue Streams
Hypothesis End customers would be willing to pay 0,99 € for
Freemium –app including personal account,
recommendations, rating etc. (value-based pricing).
Test Conduct online pole about users willingness to pay for
such an application including a short description of
app´s features.
Validation If pole results show at least 20-30% of participants
would be willing to pay for Freemium-app.
Result 22% (5/22) participants are willing to pay 0,99€ for a
TransMenu Freemium-app and therefore hypothesis
can be considered as valid.
26.09.14 5FreshEntrepreneurs2014
Hypothesis - Freemium
6. Hypothesis - Freemium
26.09.14 FreshEntrepreneurs2014 6
Testing hypothesis:
Embedding of pole in blog and posting it on social media websites (Facebook) to
reach potential end-customer
8. Minimal Viable Product II - Prototype
• Physical Restaurant menu including QR-codes
• To be presented Monday in class!
26.09.14 FreshEntrepreneurs2014 8
9. Component: Revenue Streams
Hypothesis End customers will find TransMenu service helpful and
easy to use.
Test Show prototype in class and conduct survey after end
customers tried TransMenu-app themselves about
likelihood to use product in the future.
Validation If at least 60% will confirm they would like to use
product in the future again.
Result ?
26.09.14 9FreshEntrepreneurs2014
Hypothesis - MVP
