Lessons Learned 3 (June 17th)

1. How should we calculate the cost of the service? This is complicated!
- monthly flat rate or a lesser monthly flat rate plus a fee per item
- how do we figure out how long the clothing will last
       - need to calculate an average of how long the clothing will last in order to estimate how much              
         revenue an item can bring in (clothing lasts ____3___ months on average)
Our options:
- monthly

2. Different customer segments need different types of marketing
- we are not only marketing to new parents, but the people that might give gifts to new parents such as grandparents, friends etc

3. Perception of price is important. If we charge $60 per month, WE know that parents spend more than that on clothing ($82 per month), but if they think our service is too expensive they won't buy it.

4. Based on the answers we received, we have determined that our survey questions were too vague, need to make them more specific.

5. MVPs must show the "fun factor". Especially at the beginning.

6. Customer Relationship Management: Get-Keep- Grow
- what types of clothing should go in each step?
- get customers, keep customers, grow customers
- basic items (get), more expensive items (keep), specialty items (grow)

7. We need to consider how we will KEEP customers.
- this might be difficult for us, since we can't stop kids from growing up...

8. Distribution Channels: how does what WE do get to the customer?
- a channel play can be more decisive than a product play (ie Netflix vs Blockbuster)

9. What is the best way to price for the customer? Valuation of customer's willingness to pay is critical so getting the right number is important to the business. Customer segmentation is also important because different customers will have different elasticity of demand.

10. The value proposition of a company should be able to help solve an existing problem.

11. Consider the difference between who is making the buying decision and who will eventually be using the product.