Not all products fit into a simple box that can be packaged and sold for a tidy profit. Customers may find value but in a different way where a razor-and-razor-blade model or a services model makes more sense. In other the customer value is from offsetting an existing cost which could vary over time – and is further complicated by a high initial cost that requires financing. This is particularly true of renewable energy with low or no marginal costs but can be true for other sectors. For a start up in a nascent business being able to peer into the future and develop a sustainable product product or product roadmap can be an issue of basic survival.
We use as the basis of our models, the framework of Robert Merton and in particular his 6 functions model which allows us to design detailed, holistic business models. Years of experience in corporate finance, equity markets, financial engineering/securitization, leasing/secured financing and tax-advantaged structures allow us to further build out customer financing and services solutions.
Blogs on the Solar Market and New the economics of business models
- Solar Economics: An Introduction
- A Methodology to Design Economic Products and Build Sustainable Markets
- Economics and SolarCity’s New Roof