Questions

Our service caters to home building, and the age old question appears- do you go after customers that build less homes, but potentially pay you more per home, or go after homebuilders that may pay less per home, but build much more homes (bulk)? Also, this is a new service that will help to sell homes, but also has a bit of early adopter/glamour angle to it, so is it better to land celebrity early adopters that can spread the word, but this may be at a loss in the beginning, or concentrate on doing as many projects as possible to generate cash flow? Next stage is angel investors and VC to scale, as it is a product as a service, so requires some human on-site presence per project.

I think you are asking the wrong question. The real question is how to validate that customers are even interested in this service at all, and can you deliver it at a sufficient scale to be profitable in the long run. You are not really concerned about profitability in the beginning, so you're mostly pricing just to get the most customers possible to validate your hypothesis. Then, once you have a consistent, albeit small, demand for your service, you can begin to explore ways to scale and make delivery more cost effective.

Also be careful of learnings collected from early adopters. You'll run out of them eventually, and may need to adjust some of your business to serve the mass market. Best to figure out early how these early adopters differ, and how that affects long term profitability, even if you don't leverage that in the service right now.


Answered 7 years ago

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