eVent Business Model


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A business model introduction of Realxperience LLC's home automation product. We welcome feedback from the crowd.

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eVent Business Model

  1. 1. Key Partners Key Activities • SunMan Engineering • Design • Fathom Design Studio • Engineering • Bluetooth Future: Future Possibilities: • Agile Development • Google • Sales & Marketing • PayPal Key Resources • Amazon • PG&E • Intellectual Property • Design Talent • LEED Building • Electrical Engineering (test hypothesis: Channel, Customer, Problem, ) • Mechanical Engineering • In-house Legal • Customer Development Value Proposition (test hypothesis: (test hypothesis: Product, Market Fit, Demand Creation) Competition/ • Reliable performance Substitutes) • Performs as Promised • End-user Electricity Cost Savings • Low total cost of ownership • Product savings paysback initial up-front cost • Improve overall HVAC system performance • Upsell opportunity for installers • Environmental Solution Cost Structure • Product Development • Fabrication • Testing • Customer Research • Salary Customer Relationships • Delivers end-user cost saving benefits Channels • Direct (web) Transactional • Direct (Sales) Relationship • Indirect / Online • Indirect / Retail Revenue Streams (test hypothesis: Size of the Opportunity/Market, Validate the Business Model) (test hypothesis: Pricing Model) • Per unit sales (currently zero) Customer Segments (test hypothesis: Problem, Customer, User, Payer) • B2B Homebuilder serving B2C Homeowner
  2. 2. Customer Need
  3. 3. HVAC Energy over HALF of Residential Electricity Costs 54% The Opportunity Source: Charleston Wise, A Program of The Sustainability Institute, Link
  4. 4. Product Positioning: Home Builders For home builders who want to improve HVAC system stability, the new eVent is an automated vent that helps prevent harmful backpressure that can freeze or overheat supply units. Unlike traditional vents, eVent reduces total cost of ownership of central heating, and creates a unique selling point.
  5. 5. Product Positioning: Home Owner For home owners who want to lower electricity bills, the new eVent is a wireless vent that optimizes HVAC heating and cooling. Unlike traditional vents, eVent learns your preferences and helps you save money.
  6. 6. Gear Up Cost savings Comfort Conservation DELIGHT EFFICIENCY FUNCTIONALITY Building Contractors: • Improve HVAC system performance • Upsell opportunity Residential Home Owners: • More stable air conditioning • Self-learning, automated. (touchless) DIY Retailers • Increase av. rev. per customer / upsell
  7. 7. The Solution
  8. 8. Product/Service: Intelligent Remote HVAC Flow Management
  9. 9. Filed Utility Patent in 2012
  10. 10. Whole Product Offering Target Segment Name: Tom Quin Age: 45 Location: San Jose, CA Occupation: HVAC Contractor Salary: $115,000 Compelling Reason to Buy: Likes the idea of upselling HVAC products; wants to help prevent premature HVAC failure. Enviro- Cost friendly Savings Reduce Emissions Affordable Low TCO, contractor priced Opportunity to Upsell Reduce system failures Reliable Long battery life, solid hardware Automated system does the work Delight Modern design Intuitive A service, not advertising
  11. 11. How it Works eVent Cloud Software eVent Hardware Online Self Learning Vent System Balancing Electricity Savings
  12. 12. The Benefits
  13. 13. Value Proposition: Cash Savings eVent targets a 10% HVAC energy reduction, saving U.S. home owners up to $108 per year* Consumer Pain Point The typical U.S. family spends at least $2,000* a year on home electricity bills. *Source: American Council for Energy Efficient Economy, 2012. http://www.energystar.gov/index.cfm?c=products.pr_pie ** Company Estimate: ($2,000 X .54 = $1080. $1080 X .10 = $108)
  14. 14. Profit Model
  15. 15. Market Size “The home energy management systems market is valued at $1.5 billion in the US, according to GTM Research…By 2017, that number will more than double to surpass $4 billion¹” 769K NEW U.S. HOMES BUILT last year 70M U.S. OWNER OCCUPIED HOMES with Central HVAC³ 3.4K U.S. HOME DEPOT & LOWES STORES Sources: 1. “The Power We Don’t Use”, Christian Science Monitor Oct. 7 2013. 2. http://www.census.gov/construction/nrc/pdf/newresconst.pdf 3. http://www.eia.gov/consumption/residential/reports/2009/air-conditioning.cfm
  16. 16. Market Size - Target Total Available Market Served Available Market 59.5M *TAM Calculation: 70M Homes Central Heated X .85% Online = 59.5M homes. US Census Bureau Data. *SAM Calculation: 480K Nest Thermostats Annually Sold X $250 = $120,000,000 Homes with Central Heating and Internet $120M 382K New Homes each Year Target Market 2.5%Dof New Homes = 19,100 Yr 1 $1.9M
  17. 17. Logic of the Business
  18. 18. Technology Adoption Life Cycle (TALC) What is it? Innovators
  19. 19. Win-over Home Contractors 75% Market Share
  20. 20. Indirect Network Effects (Sales Reps) Win Contractors Big Box Retailers Residential Consumers
  21. 21. The Verge, Engadget, TechCrunch, TechHive, Twitter Slashgear, CleanTechnica, Greentech Media, ZDNet, MIT Review, GigaOM, AllThingsD, GreenUnivers, PC World YouTube Online Facebook blogs.hbr.org Offline SJ Mercury Advertorials NPR Wired, FastCo, Inc., Old House Entrepreneur Nightly Reuters, FT, WSJ, News: NBC Amazon LinkedIn Reviews Free Samples Bundles Shares Facebook Recommendations Website Tiger Amazon Direct Reviews HVAC Conferences PG&E Energy Efficiency Workshops Lowes BB&B WOM Home Depot Service Service Loyalty Community Go To Market Funnel HVAC Forums LinkedIn Transaction Consideration IEEE Spectrum Awareness Lower Higher
  22. 22. Competition
  23. 23. Top 8 Differentiators vs. Substitutes Feature / Product Pressure Damper Traditional Vent eVent Cost Web-enabled $80 - $170 No $3 - $25 No $25 Yes Remote Activation No No Yes Self-learning Integrated Thermometer No No No No Yes Yes Motion Detector No No Yes Usage Analytics Interchangeable faceplates No Not Applicable No No Yes Yes
  24. 24. Competition Keen Home eVent Pricing $150 (includes 4 vents) $100 (4 vents); or $25 ea. Battery Life 1 year Over 1 year Product Benefits shorten HVAC run time Prevent spatial zone overheating/overcooling Intellectual Property ? Yes Team Members 2 4 Funding $40,000 Indiegogo Self-funded Wireless Standard ZigBee Home Automation 1.2 Bluetooth® 4.0 Production Ready Q3 2014 Q3 2014 Go-to-Market Web, Consumers Web, Contractors Manufacturing New York San Jose, California