The document discusses Autonomow's channel strategy based on interviews with dealers/distributors and mentors. It recommends initially using dealers and distributors while the product is complex, then shifting to direct service as the technology matures. Dealers expect personal service and relationships are important. The document also provides a cost analysis of the initial channel phase and outlines a growth path for Autonomow through technological progress.
4. Key Channel Insights From The Dealer/Distributer Interviews Demonstration is necessary – “build it and they will come” Farmers expect personal and timely service/support. Relationships and trust are important Dealers have exclusive non-competes with manufacturers – but not a problem for Autonomow THEREFORE … use Dealers and Distributers From Our Mentors The Autonomow channel is inextricably linked with equipment/technological maturity
5. Another pivot … This time the Channel Initial product will be complex Beyond traditional tractor operator experience Need feedback for algorithm training and product refinement High-touch service to ensure good customer experience, gain credibility and market share Direct Service Dealers
7. Cost of the Channel – Phase I Yearly Revenue per unit $180K Rental: $1,500/day ASP (List $1,600) Productivity assumed 10 ac/day @ $200 saving/ac Expected utilization: 120 days per year (46% of weekdays) 30 weeks per year, 4 days per week Yearly Costs per unit ($57K) Equipment Expense: $15K (5-year amortized) 1/4 trainer/operator: $20K 1/4 Transport/Maintenance: $10K 1/4 Overhead: $12K ListPrice Revenue Cost of Goods(32%) Profit + SG&A + R&D (68%) EU Discounts End Consumer Source: Mark Leslie, Stanford GSB / Jon Feiber