1.

stioWhat are the major, quantifiable value and price elements associated with the Kunst 1600? Value and Price elements associated with Kunst 1600 Pumping speed of 1.6 cubic feet per minute (CFM) Light weighted (weighs 16.5 pound) Being a compressor, run longer and cooler than conventional pumps More efficient at lower pressure levels than competing products Price premium due to Kunst Brand Doesnt require oil changes and has a projected lifetime of 6 years If the oil change is done after every job, the owner saves approximately $25 per job. The oil change job after outsourcing is $16 per job. Hence, in either of the two cases there are cost savings involved Practically oil change is not done after every job, but instead only once a week. Then the cost savings come to around $0.5 per job. Considering peak season a technician performs around 1000 to 1400 jobs. Hence, this cost saving comes to around $600 per technician.

2. What additional value placeholders, elements not presently quantified, merit consideration in your value model? The small size and the low weight of the product are important value propositions from marketing point of view free trials and product demonstrations can be performed. Kunst 1600 and other 3-6 CFM vacuum pumps have the same output but Kunsts expected lifetime is 6 years in comparison to 5 years of lifetime for other 3-6 CFM The main value proposition for this segment is absence of any oil change. The monetary changes associates with this are o o Home segment Cost saving is around $0.1 per job. Annual savings are approximately $165 Commercial segment Cost saving is around $0.2 per job. Annual savings are approximately $250