BizD 04 Challenging area in business model

04 Blog on which business model area you find most challenging and why. What are you going to do to overcome this challenge?

Every stage is challenging at this moment but the most challenging part is #4 how do we make money – What is our pricing model.
Logically we are thinking that we can make profit while it will bring benefit to both customers and us, but I am not sure how I can decide the price of  the whole service we are providing. Because it wasn’t in the market with suggested price tag so i can use that as reference for pricing. Also the service we are providing is collection of many thing.It includes essential accessories, mental energy to worry about bike getting stolen or deals with potential problems , and time they need to take care of their bike.

Our main idea is packaging everything both tangible and intangible things one need to bike, in other words, to get benefit from biking as an urban transportation. If one think about biking, one may just think about the price of bike, however it actually cost more. Helmet, bike light, and lock. Also you have to air the tire, change the tire once in a while, fix when something go wrong, and buy again if somebody steal your. Often you space out when to do these.

We are thinking the pricing model will be largely depend on the statistical numbers. In order to  overcome this challenge, first I ’ll break it down our services, check our competitors’ price, then glean statics for each part.

To deal with the challenge, we’ll work hard to glean solid statistics including :
– Existing bike rental shop’s price and how they define the price.
– The numbers bikes averagely get stolen a year,
– The average cost of essential accessories
– The time that people spend in visiting a bike shop to fix
– The average cost of essential accessories

This is where we are now, we will work hard to find proper information. I m wondering if there is certain sites to reference price for emerging services or site that many business people go for solid statistic ?



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