REVENUE MODEL

Team AutonomowENGR-245 – Week 7 Presentation

THE BUSINESS PLAN CANVAS UPDATED

•Research Labs•Equipment Manufacturers•Distribution Network•Service Providers

•Technology Design•Marketing•Demo and customer feedback

•Cost Reduction•Remove labor force pains•Eliminate bio-waste hazards•IP – Patents

•Video Classifier Files•Robust Technology

•Farming conventions.•Demo, demo, and demo!!•Proximity is paramount

•Mid/Large Organic Farmers•Agricultural corporations•Weeding Service Providers

•Mid/Large Conventional Farmers

•Direct Service•Indirect Service• … then Dealers

•Direct Service with equipment rental•($1,500/d; 120d/yr )•Low density: $1,500/d•High density: $6,000/d

Value-Driven

CUSTOMER ARCHETYPES

Oscar, Mid-size/Large “Organic” Farmer • Owns 500-1,000 acres (50% organic), family

business, Spends $300/acre, Budget: $75-$150k

• Motivation: reduce direct weeding cost, investment/innovation averse. Buys small/leases big

Vincent, VP of Agricultural Ops of Ag Corp.• Manages 20,000 acres (20% organic),

Spends $250/acre, Budget: $1.0m • Motivation: TCO: OPEX, Yield (bio-waste

hazards), labor force pains. Wants to buy the equipment, ROI driven Steve, CEO of Weed Corp.

• Manages a work force of 50, provides outsourcing service for (chemical) weeding, Budget: $150k ( 5 workers)

• Motivation: new revenue streams, new ways to increase productivity of his weeding teams, labor issues

PRODUCT OFFERING

Equipment Trainer/Operator Logistics Maintenance

Daily rental: All Inclusive Weeding Kit

“I like it, because I need to pay for the equipment only when needed. Plus, you guys make sure the technology works“.

“I like it, because it allows us to test a new service in different small-acreage environments. Eventually, I want to buy.“

“I like it, but once the technology is robust, I want to buy.”

Competition does asset sale with mixed success: one of the “Vincents” bought a Robocrop, but cannot operate it.

competitor

PRICINGPrice customers are willing to pay depends on

weed density Low-density field: $150 per acre High-density field: $600 per acreWith a machine capacity of 10acre/day Price range of $1,500/day to $6,000/day

Low density field and high-density field require different resolutions for the weed killing mechanism differently equipped systems justify price differences

Price table:Low-density: List price: $1,500/dayHigh-density: List price: $6,000/day

with up to 33% leeway for discounts(volume, price sensitivity)

Robocrop : $171k (Four 40 inch beds)competitor

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Rental revenue per month

REVENUE MILESTONES

$200k$400k$800k $1.0m $1.5m$100k

Tech II (High density)Tech I (Low density)

•Revenue Drivers: # Machines, Billable Days, Rental Price (Low/high dens)•Gross margin: from 30% to 70% as we move from Tech I to Tech II•Break-Even after one year

Yr1: $1.0m Yr2: $7.0m Yr3: $15mAnnual Revenue:

Organic FarmsLow Density Vegetables (lettuce, tomatoes)

Organic FarmsHigh Density Vegetables (carrots, spinach)

Conventional Vegetable Farms ~ $2B

GROWTH PATH FOR AUTONOMOW

Simple Crops 2011TAM $ 445.28 SM $ 95.17 TM $ 92.07

All Veggies 2015TAM $ 796.87 SM $ 356.70 TM $ 351.82

CarrotBot

CARROTBOT MEETS THE CARROT FIELD

Q&AQ&A:

WEEDING COSTS > PRICING

Low High

High

Low

Weed density

Cro

p d

en

sit

y

CropWeed

$600/acre

$500/acre

$150/acre

$100/acre

Backup

List prices:

High-Dens$600/acre

Low-Dens$150/acre

Up to 33% discount