Based on further analysis, we have decided to shift from targeting water heaters to targeting air conditioners since this market holds greater potential for us. With final presentations right around the corner, we are testing MVPs and also starting to build our prototype for demonstrations this week. Our team has been divided into hardware assembly, software design, and research compiling. The tasks that we are working on completing include designing the user interface of the mobile application, developing the equations for the back end, writing the algorithm for Arduino, utilizing a linear formula to quantify the measurements made by the pressure sensor, gathering data about maintenance workers, and implementing these various components into a broken air conditioner to run tests. We went out to purchase the pressure sensor and Arduino board from a hardware store and will be purchasing a broken air conditioner from an auction site.
We have decided to focus our primary customer segment on low to mid income hotels and cut out any discussions of supplying to manufacturers or everyday households for now. This is because of the fact that the other two market segments require very different strategies. We simply want to focus on our primary segment and ignore other distractions.
Our payment model is another element that we altered this week. We will be maintaining two revenue streams: fees collected from our hotel partners that utilize our products and commissions generated through maintenance workers. Our mobile application will provide referrals to these workers so we will be collecting small commissions from any work they receive. Our primary revenue stream is sales to hotels. Our hope is to establish a successful business model and reputable product with smaller hotels before we target larger hotel chains. Scaling up to meet the varied needs of larger hotel chains is an issue that we cannot focus on until we validate the success of our product. In addition, larger hotels manage their air conditioning systems differently.