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Element 22. Revenue Model That Swamps Co... > The Coin-Operated Laundry—Revenue Mo...

The Coin-Operated Laundry—Revenue Model That Swamps Costs score: 6

The model you will be using is identical to an industry that is already in existence. The challenge will be to drive your costs down so that your natural quality advantages can be adequately marketed. The innovation you are employing will not be so revolutionary as to implore a different revenue model. However, if your costs remain higher than the market will tolerate, then you should reconsider the revenue model. For example, you could consider attaching yourself to a hospital or to an association of restaurants so that you could cover all your fixed costs with your pricing for those “affiliates/partners,” and hold yourself open to the public at pricing that would only need to cover your marginal costs. The “owner” clients would simply subsidize your non-owner business. Let’s award this element a 6. If it weren’t for the assumption about the hospital and restaurant association I would certainly award this a 2 or less. The maximum score would be reserved for an enterprise that was not burdened with a 25% cost differential above the competition.

Element 22, Revenue Model That Swamps Costs score summary:
Weight 1 × Score 6 = Total 6



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