Economics Students and Readers:
This past week there were several great pitches on Dragon's Den as well as Shark Tank. Here are a few of the products:'
From CBC's Dragon's Den:
1. Dans Un Jardin (In a Garden)--Deteregent Dispenser. You pay $1.00 for a refillable bottle, and then refill it with detergent rather than waste plastic bottles. This isn't the pitch, and it is in French, but I think this is something that would be best installed in Apartment Complex and Dormitory Laundry Rooms. I'd actually use it since the Soap is Phosphate Free and the reusable bottles are better for the environment. One of the Dragons (Jim Treliving) nearly made a deal but then changed his mind.
2. Jitterbee Pancake Shaker. Frank here is doing something that has already been done by Bisquick and Aunt Jemima. However, those who've tried the product have said they taste better. Frank is a dad raising kids so I get why its been hard to promote the product. Again, this isn't the pitch, but would you consider trying this product?
3. Chillbed laptop cooling stand. I personally see this product as having been done a number of times before. I realize aluminum makes a good heat sink, but come on! It may be cheaper than those with fans or freon, but really, this product is too easily duplicated since nobody has nor can they get a patent on the metal Aluminum.
From ABC's Shark Tank:
1. Chord Buddy Guitar Learning Aid. Robert Herjavec went nuts for this one. It seems to be a good idea to me!
2. Tail Lightz. Lighted patches for your rear end. uh... NO!!
http://www.taillightz.com/As-Seen-on-Shark-Tank.html
3. You Smell Soap. This gal was shrewd and got a deal for her organic soaps and soap paper!!!
There were some good deals and some stinkers!
What are your thoughts?
Success to you all!!!
Prof. Hank Lewis
Benjamin Simpson.
ReplyDeletetues-thur.
9:30.
2301 (macro)
I think that some are interesting, and some are pretty silly.
I was interested in the chordbuddy specifically, because I play guitar. Personally I would never use it, and probably wouldn't recommend it to anyone I thought perfectly capable of learning without it. On the other hand, those struggling with the chords could benefit greatly. I'm glad that it was a program to get off of the crutch, and move past using the plastic aids, rather than just an easier way to play guitar.
It is pretty easy to see that a major theme in these products is practicality.
Since these are just an easier, or more desirable way to fulfill a basic need, would they count as superior (luxury) items? these are all combinations, or re-takes of existing goods, and none of them fulfill a basic need that cannot be met by other products. Are these good examples of superior goods?
Mr. Simpson:
ReplyDeleteGood point about how those products might be classified. I'd say for the Soap and perhaps the ChordBuddy, they'd be considered Superior Goods, but given how inexpensive the ChordBuddy is and how common it is for someone to try to learn to play guitar, the ChordBuddy may be considered a normal good.
As for the the Detergent Dispenser, I see this as a normal good or even income-neutral on several levels because:
1. Everybody needs to do laundry.
2. Lots of us want to get clean clothes and not harm the environment.
3. Reusing packaging reduces costs of production to the manufacturer which makes the product less expensive to the consumer (TC decreases, S increases, P* decreases)
4. The standalone dispenser lowers the overhead cost also (i.e. pay for floor space/shelf space in rent, but mainly refilling machines)
I just feel that the fellow who came up with it needs to consider, seriously, getting contracts with Washaterias, Apartment Complex and Dormitory Laundry Rooms. He could pay rent or split the take with the apartment management or college. Perhaps even set up a smaller version--sell individual use dispenses into a cup for a higher per unit cost--in the laundry room version and make a much higher profit margin.
Good thoughts though.
Prof. Lewis