Page 370 - Value Proposition Design: How to Create Products and Services Customers Want - PDFDrive.com
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Variable production costs of $225/device
Fixed marketing expenses of $1 million
Costs Revenues
Device Production, 1.2M Device Sales, 5.5M
Sale & Marketing, 1M
Sales Commission, 2.8M
Profit 0.5M
Model 2: Recurring Revenues from Consumable Testing Strips
Each diagnosis requires a consumable testing strip
Recurring revenues from selling an average of 5 strips/month/device for
$75 each
Variable production costs of testing strips of $7/strip
Costs Revenues
Device Production, 1.2M Device Sales, 5.5M
Sale & Marketing, 1M Testing Strip Sales, 24.8M
Sales Commission, 2.8M
Testing Strips Prod., 2.3M
Profit, 23M
