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I am working on a new product that is geared towards boat owners and would like your input on the idea and comments on how to proceed with this venture. 

 

The product is a 19 lb remote controlled ROV (unmanned submarine) fitted with a colour camera, providing video to the operator back on the boat.

 

It is controlled with a unit that closely resembles a traditional gaming pad.  Video is viewed with a set of video glasses to eliminate the glare from the sun.  Max depth is 300 ft. 

 

Owners could use them to inspect their hulls, or anything on the ocean floor (wreaks ETC).

 

Admittedly, products similar to this exist already, but are out of the price range for recreational use ($6,000 USD and up).

 

Unfortunately I cannot post pictures of the prototype because I am patenting now.

 

Quality is high - cast aluminum hull, magnetic couplers ECT.

 

List cost would be $1,499 USD for the whole package.  After some time, I think that could be reduced to $999 USD.  COG+duty+assembly is around $300-$400 depending on qty ordered. 100 units would be $400, 1000 units would be $300. 

 

In your opinion - do you think this product is viable for mass production? 

 

 All comments good and bad are welcome.

I have spent 3000-4000 hours designing this product and testing it.  The next step is to complete the final prototype and purchase the moulds required for production. 

I forsee $40,000 USD as being a safe amount to start this project, but would rather find sources other then my personal savings to fund this.  What avenues would you suggest I try?

Thanks for the help,

Jeff

Thanks for the tips.

I work for a medium sized OEM now and know that JIT is impossible unless your Toyota. 

Components for this ROV are offshore, so I would have to start with at least 10 units to keep my suppliers content, and cover shipping.  Lead times are around 20 days.  I can fly any of the parts over if I am in a pinch.  Normally they would go over the ocean.

The other problem is moulds are required to make a few major parts, so 12K is required upfront.  The prototypes were CNC machined from blocks of plastic and aluminum, which is fine for a prototype, but not for production.

JL

JL,

A few comments and suggestions:

1. As a boater who lived aboard for 5 years, I would not purchase your product to inspect my vessel. The frequency of use for that purpose just wouldn't justify the expense. Maybe there is some other way to reach the boat owner community?

2. I spent some time working with an agency that specialized in assisting small  manufacturing companies and can tell you that JIT and Lean manufacturing can provide a huge benefit to the small manufacturing company.

3. Your $40,000 may be an underestimate of the capital required to bring a product to market.

4. I strongly advise against pricing your product from costs. Before you invest in manufacturing (parts, tools, molds, etc) determine and define the market for your product - including the price points.

Good luck with your project. If you'd like to discuss the specifics of your situation, feel free to contact me directly or send me a PM.

-------------------------

Business Growth Masters, LLC -
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http://www.bizgrowthmasters.com
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You need to make it and start selling it. Unfortunately at the start, you will have to self fund. When you start getting traction then investors will become interested. There seems to be many different uses for your product. It comes down to finding the niche that catches on. Universities could be interested in it for research purposes. Coast Guards throughout the world may buy your product. Police and Military could be worth investigating.

Think about using your prototype as a means of getting advance orders. It will be easier to get investment with advance orders.

I agree with byrneof01

Sounds like a great idea. I have noticed boat rental companies send a diver in to inspect boats that are chartered without a skipper when they are returned.

There is a large market in Europe and the Caribbean for this, in recent it has exploded in Croatia. Might be worth looking into.

 

Best of luck

Very good suggestions from the posters on this topic, I'll add my 2 cents.

It's good practice to start pricing your product after doing more detailed market research. As Robert has suggested there may be little demand in his geographic region, however as Daniel has suggested, the Carribean and European regions might have greater demand for your proposed product. Bootstrapping might be more useful in some respects, but always consider the big picture and develop a plan on how to enter your target industry.

You might find an investor through my company's webservice at "Capital Matchmaking" at Conektinc

The website is still getting ready for launch, but it is designed to match entrepreneurs with investors based on compatibility. Feel free to sign up and receive updates when we are ready for launch. You will not receive spam and your information will not be used for third party marketing purposes.

 

It seems like a wonderful project to me, to be honest you should start working on it who knows you made a revolutionary product which gives you unlimited revenues on this manufacturing project. But for funds, you have to make some initial funds and then can apply for a manufacturing company for sponsoring your project if it goes all well.

 

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