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half the cost, would allow me to cut my price 20%? Question Existing example ? Southwest Airlines ? PC clones ? Personal shopper ? Mail order ? Premium ice cream ? PetSmart ? Baby Superstore ? Zinc in batteries ? Lowrate credit cards for high credit rating Potential idea ? 6 packs of singleuse, lightweight, disposable umbrellas ? Discount realtors ? A bank with home cash delivery ? Home decorator superstore ? Industrial pawn shop for small business lending Product idea tree 5 ATCZG002120239CoyneMSTR 1. What is the biggest hassle about this product? ? For what subgroup of users . . . ? For what subgroup of usages . . . ? Etc. 2. What do the Batman movie, roller blades, and Ben and Jerry’s have in mon? 3. How would I do things differently if I had perfect information? 4. Where are the search, order entry, and tracking costs a large percentage of total costs? 4 killer questions 6 ATCZG002120239CoyneMSTR Raw material suppliers Volume Costs Concentrate surplus from suppliers 2 Costs Compete for surplus 1 Client OEM Costs Concentrate surplus from channels 2 Retailer Capture surplus from customers 3 Price Cooperate to capture surplus 5 Create new demand 4 The 5Cs model 7 ATCZG002120239CoyneMSTR Today ? Developing an idea ? Assessing your idea – How p