Evaluation!

Haven't done this for ages! loveitloveitloveit!!!

okok, what do we have here? oh, eco-consultants!

ok, nowadays more and more people want to live the so-called 'green life'. they want to save the enviroment for their children and grandchildren, they become vegans and vegeterians, they recycle things.. their enthusiasm is so enormous, that it has become very popular and those people, who don't actually care about the enviroment, do this only because it's popular.

I might say that all the house makeovers tend to be income elastic, as people are likely to do the refurnishing or a house makeover when their income increases and they want a better place to live in. Plus, the popularity of an 'eco-life' makes it almost price inelastic, therefore, it's a very profitable business in theory. BUT!

The price of this service makes me suspect something strange. Where have you seen a makeover PLUS 90 minute consultation for 99$? On 99$ in Russia a can buy a pair of jeans and a T-shirt, that's all! Maybe the entrereneur lowered the price to attract more customers? Maybe, but this means that his market research:

a) is primary and is totally inaccurate

b) is secondary and now it's useless as lot's of things have changed since it was carried out

c) is not done at all

Because he would knew that his product is highly demanded and even might be permanently price inelastic so he wouldn't put that funny psychological price - 99$!

Ok, maybe the materials are cheap or the amount of work is not so big (but it depends on each customer - some already have almost 'eco' houses, some have totally enviroment-unfriendly houses, therefore, different amounts of work should be done), but consultations.. uh, there is something wrong here. A consultation involving expectation of a house, looking through the bills etc cannot be effective if it's only an hour and a half long! A good consultation requires a good specialist, a good specialist requires a good wage.. therefore, either the company has 1-2 consultants or it has enormous costs! Price cannot be so low, otherwise the business will fail after a week or so. Even more, they are training consultants - more costs! uh!

To my opinion, the business idea is very good, but the business plan should be redone and something should be done to the price. Maybe some market research to find out the ideal price and to bring some improvements into a business, and some advertisement to attract more customers perhaps?