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 & health care industries for 75 years and currently holds a 60% market share in laboratory, healthcare and industrial applications. * The Kunst 1600 is made from aluminum, which makes it lighter, rust resistant and more durable. * Kunst is a German company. German companies are known for their engineering. * Kunst 1600 is a compressor, so it remains cooler.

Construct a customer value model for the Kunst 1600 in the residential AC, home refrigerator, and light commercial refrigerator repair market segments.

* Cost saved on oil changes:
Clean-up supplies = price of towel + price of soap
Oil disposal cost = recycling charge per gallon of oil x number of gallons recycled
Labor cost = rate with which individual is changing oil, Hourly x time required per change in Hours

Residential AC Repair segment:
Cost savings per change in oil = $8 + (0.50 +0.15) + (.25 x $5) + (.5 x $12)
= $15.90
Now, Cost savings per year (oil changes) = Cost savings per change in oil x per year number of oil changes => $15.90 x 20 = $318

Home Refrigerator Repair segment:
Cost savings per change in oil => $4 + (0.15+0.50) + ($5