In a recent business marketing project a new innovation was conceived by marketing student Paula Chavis. Her invention, is a filtration Reverse Osmosis system specially designed to recycle the waste wash water for use elsewhere in the carwash; for instance landscaping, toilets or even pressure washing the facility.

Now then what will be some of the details? For example these systems must have some sort of warranty right? Sure, that makes sense indeed. So what would be a good warrantee?

We will offer a 5 year warrantee with a chance to purchase an extended warrantee as well.

Five years is a very good warrantee but are we sure we can afford to do this? I would hold short on that due to the very expensive membranes in RO units, but if you warrantee the housing of the system you should be fine. I would have a 12-month warrantee, but then charge a service contract for electrical and membranes. You may wish to cost this out, because it could be very expensive and cost the company future earnings or worse ruin your credibility is you are unable to perform.

Additionally you must be careful not to give away what the customer would be willing to pay for in a service contract, as that too can add revenue. If you make the warrantee too liberal customers may abuse the equipment and then expect you to be at their beck and call. So be wise and fair, to yourself and your customer too. If you have a service contract and you want to give away free parts once in a while do that instead and you are the good guy, which will help you get referrals and zero complaints you see?

Next up where is the target market to be? Where will your sales be best and in what regions will customers most likely wish to partake in such specialty niche equipment?

We will start our promotion in California, Nevada, Arizona and Florida since they have the best year-round weather.

Well this would makes sense indeed. But realize if the bulk of your customers are in California, Arizona and Nevada, can you honestly give good service to your Floridian Customers? And back to the warrantee issues, will you be able to perform for the FL market base. Eventually I would add NM, TX, LA, AR, OK, GA to your original target markets, once business gets good and also considering their drought issues. All in all good job on your Marketing Project, Paula, as it is reality based and I would have given you an A. Consider this case study in 2006.