Friday, March 13, 2009

You call it ice cream, I call it a popsicle. Let's call the thing JuICE

Well today was the first day our micro-enterprise hit the streets. We don't have a name yet but the partnership is between myself and Alex Ambani. It all started with Alex pulling me out of the path of a wayward truck.  In return, I've helped him look for work - he's trying to put his sisters living in western Kenya through secondary school. Having no luck, I offered to help him start a business that we could do together until he could "buy me out" - which we've found works better than just gifting the money or giving a loan outside a membership in savings group.

With that background...Alex and his cousin went out this morning to test the market with 15 popsicles we made from juice. They returned with all sold. The only problem is they were forced to sell them barely above cost due to a competing product selling for one third our intended selling price. Our product was superior, but with cost conscious customers they preferred price over quality. This evening, we regrouped and decided to reduce the size of our popsicles to the competition's size but keep the orange flavor strong and sweet.  This way each unit is significantly less which will increase our margins at this lower selling price.  We hope to get the right product at the right price and then begin engaging others to sell the iced juice.  I'll keep you updated but feel free to give suggestions in the comments.  

1 comment:

Greg said...

Tyler, I love it man! I hope it goes well! Any updates? I think it was a good call to keep the quality and reduce the size. Pretty soon this thing will be all over Kenya and you'll never come back!