Oxygen Markets

I had a very interesting and enlightening visit to Separation Design Group on Wednesday Aug 28. I learned (superficially) how oxygen is extracted from air using sieves made of special adsorbent particles. They've developed a bunch of application-specific machines to use the material they've developed, but none have really taken off in a way that can provide steady revenue.

Since this is very new to me, I wanted to make this page as a place to consider different possible markets where this might sell. I realize Doug and Judith have thought all of this through a hundred times, but I'm new to it so these notes are for my self-education.

Drink Oxygenator

I'm interested now in working with them to produce a marketable device at a higher price point than they've considered before. It seems to me that we could make something roughly forp-priced that would have a market somewhere, and so the starting point should be to produce the device in a quantity of 5 or so for sale at $2000 each.

Very Rough cost estimate

  • pump $100
  • machined canister assembly $200
  • stock commercial housing $15
  • pcb, populated $100
  • minimal display $10
  • batteries $30 (cannibalize battery powered tool for cells & charger)

Total without development or labor: $455

I'd build this differently than Doug did: no clear cavity, no 3D curves. Just put it into a nice clean regular shape using commercially available housings. It should be compact but it doesn't have to be completely optimized; it should just work. There should be a hole for a disposable tube to be connected (probably a drinking straw).

Build 5 for parts cost of $2500. Give one to the Wine Spectator. Give 2 more to carefully chosen places and keep 2 in stock for online ordering.

Who would buy it?

Its not a bar-volume device: it takes a minute or so to recharge, I think. So its more of a personal use thing. Has anyone marketed one before? Is there a reason it could work now if it didn't really before? Is the better material significant in this application?

-- BenDugan - 31 Aug 2013
Topic revision: r1 - 31 Aug 2013, BenDugan
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