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Nope, the point is not to make money. Let's start from the scratch. The goal is this: Create affordable sanitary napkins for women in India. To achieve this
by solutionyogi 15y ago
Nope, the point is not to make money.
Let's start from the scratch. The goal is this:
Create affordable sanitary napkins for women in India.
To achieve this goal, he worked hard to master the first step i.e. to be able to manufacture the napkins at low cost. Great.
Now there are two approaches:
1. Sell machines to different NGOs so that they can create their own napkins. As I mentioned it requires hefty investment of 1,200$. Also, I think it's easy to underestimate how much effort is required to reach different parts of India and selling the concept of these machines.
2. Create machines on his own (using outside investment if needed) and create cheap napkins afforded by economies of scale. He can use the money from the sales and extend it create a better process, better machine and drive prices even lower. He can now rely on an existing vast distributor network to spread these products all over India [I refer you to my shampoo sachet example in this comment: http://news.ycombinator.com/item?id=3370219 http://news.ycombinator.com/item?id=3370219]. Heck, he can now even export it to other developing countries.
If the goal is to make napkins available to more women in India (and everywhere else), I think that 2nd approach is vastly superior than first. What do you think?
- onemoreact 15y agoA centralized factory is going to need to pay for shipping across India which would increase cost. Rather than dealing with such issues himself he can get people to create franchises and supply the first machine and then sell them more after things start to scale. The end result is to create a domestic industry which will then continue to drive costs down and promote adoption though advertising etc. PS: If there is a viable market, I suspect some of those groups will start to grow and you may end up with the type of large company you want him to build.
- whatusername 15y agoAdvertising, support, distribution. Much much easy when you have a distributed production/sales force.