Kunst 1600 Case
Question 1: What are the major, quantifiable value and price elements associated with the Kunst 1600 ?
1. Value elements
* Cost savings from not having to change oil because the Kunst 1600 is an oil-free vacuum pump.
* Higher revenues, and hence profits, due to higher productivity of the Kunst 1600 in lower pressure settings. These higher profits are only generated in the light commercial refrigerator repair segments since in these segments, the technicians can complete more jobs with a faster pump (the Kunst 1600) in comparison to the more traditional pumps.
2. Price elements
According to the respondents in the focus groups, the expected lifetime of their current vacuum pumps is around five years. However, wholesale managers stipulate that most repair firms do not keep track of their vacuum pump purchases and overestimate pump lifetime. They also claimed that they tracked customer firm purchases via their electronic point-of-sale systems leading them to conclude that, with reasonable care, the pumps can be used for between two and three years in either setting.
With an expected lifetime of about six years, the Kunst 1600 can be used 2 to 3 times longer than the traditional vacuum pumps. This has a reasonable impact on the average price companies spend on the vacuum pumps since these companies need to buy a traditional vacuum pump 2 to 3 times more frequently than the Kunst 1600.
Question 2: What additional value placeholders, elements not presently quantified, merit consideration in your value model ?
Value placeholders are value elements that we believe are worth something to customers but either are too difficult to obtain data for or are social elements. Also it is important to be as inclusive as possible in these elements since leaving out any, particularly those that make the Kunst 1600 seem less favorable than other (more traditional) vacuum pumps, would render a value model with little credibility.
* The Kunst 1600 is
1. Value elements
* Cost savings from not having to change oil because the Kunst 1600 is an oil-free vacuum pump.
* Higher revenues, and hence profits, due to higher productivity of the Kunst 1600 in lower pressure settings. These higher profits are only generated in the light commercial refrigerator repair segments since in these segments, the technicians can complete more jobs with a faster pump (the Kunst 1600) in comparison to the more traditional pumps.
2. Price elements
According to the respondents in the focus groups, the expected lifetime of their current vacuum pumps is around five years. However, wholesale managers stipulate that most repair firms do not keep track of their vacuum pump purchases and overestimate pump lifetime. They also claimed that they tracked customer firm purchases via their electronic point-of-sale systems leading them to conclude that, with reasonable care, the pumps can be used for between two and three years in either setting.
With an expected lifetime of about six years, the Kunst 1600 can be used 2 to 3 times longer than the traditional vacuum pumps. This has a reasonable impact on the average price companies spend on the vacuum pumps since these companies need to buy a traditional vacuum pump 2 to 3 times more frequently than the Kunst 1600.
Question 2: What additional value placeholders, elements not presently quantified, merit consideration in your value model ?
Value placeholders are value elements that we believe are worth something to customers but either are too difficult to obtain data for or are social elements. Also it is important to be as inclusive as possible in these elements since leaving out any, particularly those that make the Kunst 1600 seem less favorable than other (more traditional) vacuum pumps, would render a value model with little credibility.
* The Kunst 1600 is