Case Study: MooBella
1) MooBella has revolutionized a new meaning of vending machine by allowing its customers to walk up to the vending machine, choose from one of the 96 available flavors and in forty seconds they have a 4.5 ounce carton of ice cream for a measly $3. This technically complex concept took 18 years to complete. With that long of a development process, a significant amount of start-up costs are likely. The major start-up cost categories that I foresee effecting MooBella in their 18 years of production are costs for the constant trial and error of new equipment. MooBella needed to hire a CAD platform to begin the process of building this machine. The company would also run into costs of employee wages who worked on this machine for 18 years. Lastly besides R&D expense, I feel that promotion and advertising weighed in as a significant factor of startup costs, but not until the end up their creation of their vending machine because of all the free samples they needed to give out to build a customer base.
2) Bruce Ginsberg created MooBella out of inspiration and excitement when he saw the idea the Turbo Dynamix had thought of. When Turbo Dynamix became MooBella, Bruce became the closer that transitioned this R&D project into a marketable project. (MooBella , 2010) Mr. Ginsberg was not involved and could not take credit for the idea of this vending machine, but he can take credit for how the machine became implemented. For nearly 30 years Bruce’s life was made up of ice-cream and how to make it profitable. The biggest non-monetary factor that induced Mr. Ginsberg to not only create MooBella, but to ensure that this one of a kind vending machine made it to the consumers was his love for ice cream. Therefore when the risk of failure rose with Bruce’s decision to start MooBella, he was willing to put his money and his reputation on the