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.
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?
- 31 Aug 2013