SafelyStroll Business Model

In the field of stroller safety, there is little competition to be found. We therefore have the pleasure to price SafelyStroll based solely on the market demand, without taking into account similar products available on the market. In the current business model, based on feedback received from potential consumers, we would price the SimplyStroll version of the product at $50. SimplyStroll alerts parents with flashing lights and vibration when the stroller is occupied, but the occupant is unbuckled. The cost for materials for the SimplyStroll design is $21.25 ($.2x2 LEDs, $8.95x1 Square Force Sensitive Resistor, $3.95x1 Magnetic Contact Switch, $2.95x1 9V Battery, $5x1 Arduino Uno). This would result in $28.75 profit per each sale, but this estimate is based on the retail price of each component. The profit margin would obviously be greater if actually sold on the market, as the components would then be purchased with wholesale pricing. We would price our SafelyStroll+ model at $85. SafelyStroll+ includes all of the features of the SimplyStroll system, plus a brake that automatically activates when the handlebar is released if the stroller is occupied. It also includes a nightlight system which lights up the way at night. The cost of materials for the SafelyStroll+ version is $34.10 ($21.25x1 Components for SimplyStroll, $4.95x2 Mini Push-Pull Solenoid, $.95x1 Photo Transistor Light, $.2x10 LEDs), leaving profits at $50.90 per product sold (Again, not taking cheaper wholesale prices into account).