Market and Breakeven Analysis

Flying Pig

Some cost are known as sunk costs. I will note some of them, but including them into breakeven analysis may not make sense from the just get things going point of view.

So, education, experience, "free" software modeling, computer, electricity, youtube videos, internet access, etc. are all costs that do not need to be itemized for the time being--they are sunk costs, i.e. already paid for somehow.

Apparently, steel versus aluminum is a wash strength-weight-wise, so which ever is cheaper and works, probably steel, is what is going to get used. Given an insane budget, though, maybe titanium might get used.

The power plant is seeming more like it is going to be an electric motor(s), possibly with a gas power generator for duration.

So my initial questions are:

1. How big is my potential market(s) and who is it? I think the market is "off road funsters" (with flying licenses, of course), mines, ranches, big farms, forestry staff, hunters, extreme campers, search and rescue. Seems like a small niche to me... :-) Possibly military application, but it seems like a very open to fire type of vehicle, so I would hope they would think twice...

2. How long is the growth period of the market?

3. How much does a customer expect to spend, want to spend, will spend if whatever...

4. What is the best market model? Sell kits? Sell finished items? Sell DIY plans?

5. What should my profit margin be? How "greedy" should I be?

6. What is the prototype worth? as in perhaps I am selling basic research and development for some advanced technology consuming organizations, so to speak?