Business Development Assistance from Kinetic Die Casting –
A few years ago, Kinetic Die Casting helped develop a Chocolate Fountain for a professional caterer. The caterer had talked about this idea for a couple years to many people before contacting Kinetic Die Casting. This catering company owned and rented commercial chocolate fountains to ordinary people. These chocolate fountains they rented out for $200 to $400, depending who was renting them. It was a great new business concept, make an inexpensive chocolate fountain that anyone could purchase and sell them for the price that most companies were renting them for. Their plan was to sell them for less than $400, an amount that most people renting them would gladly pay.
Kinetic Die Casting saved the catering company a lot of money by making aluminum die casting tooling inserts for $6,000 and making 500 inexpensive aluminum parts for them in less than 8 weeks from our first meeting. Six weeks for the tool and two weeks for tooling approval with production and machining of aluminum die casting parts. Their plan was to sell 50,000 units, then develop a larger version for commercial uses.
This was the first “consumer chocolate fountain” in the marketplace. A great idea that apparently, many other companies thought of as well. We do not know how many people this customer told about the idea or how many quotes they asked for prices from, before they found Kinetic Die Casting.
They waited too long. – A few months after this chocolate fountain hit the market, there were several “cheaper” models sold by larger distributors. They lost this market niche rapidly. The marketplace got flooded with too many chocolate fountains selling for less than $100. They were able to sell less than 1,000 units. Too Many Chocolate Fountains
This example, is an example of how a good idea can either make a “New Business” millions of dollars or how an new business investment fell short of expectations. This was a great idea that still made money, but not as much as it could have made. A great idea, but too slow to the marketplace.