Diaper FlushPresented by: Anders Brownworth, Andrew

Campbell & Phil Marchese

Fundamental ProblemCloth diapers are very popular right now because they are “greener” and better for a baby’s skin. However, cleaning them is not an easy or sanitary task. Our vision is for a device that you place dirty diapers in that removes all water and waste from the diapers and sanitizes it. This is environmentally friendly because it will not use all the water that is involved currently (spraying the diaper, flushing, and using a washing machine with detergent). It is also way more convenient. Some people we know who currently battle this issue are disgusted by what they have to do. Two markets are ripe for this: residential and day care centers. Day care centers in Texas, for example, don’t currently allow cloth diapers.

We have found that the majority of customers do not believe there is an issue that needs to be solved. We understand this is the case because most respondents would not be using cloth diapers or just don't find cloth diapers convenient enough...yet. However we think that the case is that customers would buy cloth diapers and the proposed device if it was available. We think this because of the “iPod Theory". Steve Jobs referred to this theory in his biography when he said: “People don’t know what they want until you show it to them" (Steve Jobs). Before the iPod many people were more than happy with their Sony Walkman. Then the Apple iPod came out. People were so stunned by the advancement in technology that soon the Sony Walkman, CDs, and cassettes became obsolete. We hope to do the same with cleaning cloth diapers.

● Diaper Flush

Product

Team● How did you find each other? How did you get here? Try to tell an

appealing personal story.● Phil, Andrew and Anders all signed up for the Venture Lab course hosted

by Stanford University in the summer of 2012. We all were assigned to the same group in May 2012. Phil and Andrew signed up for the course together as they had met at Stonehill College in Easton, MA.

●● The idea of Diaper Flush started when Andrew told us about parents'

increasing use of cloth diapers on their babies. He was also going to use cloth diapers on his soon to be born child. Andrew also had friends who currently use cloth diapers on their babies. He told us about the troubles they go through to ensure the cloth diapers are clean. He suggested a cleaning device like a washing machine that cleaned the diaper, but was smaller in size and could connect directly to an existing toilet. With that idea we imagined a diaper cleaning device that would be more portable and be able to clean and dry cloth diapers by the touch of a button.

Sales and Marketing● The decision makers will be the vendor selling the diaper cleaner service. Working with them

will be very important in the whole process. The decision makers will be the CEO, CFO and sales territory director. We will need to sell them on the product and incorporate the product into their sales model.

● The sales process will require a the customer to notify us our company via website, telephone or contacting a vendor.This is how to process will look from start to finish:1) Contacting us or vendor2) Taking order and sending it to warehouse/purchasing.3) Purchasing validates credit card4) Warehouse ships product to vendor5)Vendor’s diaper delivery service brings it to customer on next visit6) Vendor employee installs device and demonstrates how to use it.7) Rent cost is added to the customer’s bill

● These are some sales strategies from cheapest to most expensive:1) Emailing our social network of friends with babies or athletes.2) Working with the diaper delivery service company to use their contacts3) Flyers in the mail4) Online marketing on baby websites

Partnerships and distribution

● Partner will be the primary distributor○ Diaper service (e.g. http://www.idiaperservice.com/)

● We will train partner to install device and make basic repairs● We will sell directly to partner, who then will market device

as an alternative service● Costs involved include creation and maintenance of a

website and fulfillment systems. They are minimal as we will ship a relatively high number of devices to a relatively low number of distribution partners.

● There will be incentive payments for partners to push sales of our device among their services

Costs and revenues ● Minimize expenses

○ partnering early on - line item on vendor bill○ Kickstarter will either help us raise development funds and identify market

interest or prove our hypothesis incorrect.○ Modify an existing product rather than creating a new one from scratch.○ Customer support - call center and service - keep parts universal and

accessible to partners for easy service

● Actual cost estimated at $250● Rental price: $19/month

○ Break-even at 1 year○ Years 2-3 are profit○ A device is expected to last ~5 years

● Rent-to-own option for those who find the device more useful long-term

Funding

● Our plan can be funded with a seed investment for product development. Other activities can be bootstrapped.

● Kickstarter will be employed to raise a seed round.○ Marketed via social networking○ Offer devices to the high-bidding supporters

● Partners may be approached to provide additional funding as needed

● We expect to be profitable in year 2.