DEFINING OUR CHANNEL

Team AutonomowENGR-245 – Week 6 Presentation

THE WEEK IN REVIEWDealer/Dist. Interviews• Gonzales Machine and Forge, Inc., California• Integrated Crop Pest Management, California• Coastal Tractor, California• Ag West Supply, Oregon• Burks Tractor, Idaho• FISCHER Landtechnik, Germany• GARTNER, Land, Forst-und Kommunaltechnik, Germany\• Fisher Equipment Supply (John Deere Dealer),

McMinville, OR• Cascade Farm Machinery, Silverton, OR• More in Tulare tomorrow

Built the Data Collection Prototype – “Carrotbot”• Recruited Computer Vision Engineer• Interviewed Ken Giles from UC Davis• Headed to Bolthouse farms in Avenal, CA tomorrow

KEY CHANNEL INSIGHTS

From The Dealer/Distributer Interviews• Demonstration is necessary – “build it and they will

come”• Farmers expect personal and timely service/support.

Relationships and trust are important• Dealers have exclusive non-competes with

manufacturers – but not a problem for Autonomow• THEREFORE … use Dealers and Distributers

From Our Mentors• The Autonomow channel is inextricably linked with

equipment/technological maturity

ANOTHER PIVOT … THIS TIME THE CHANNEL

Initial product will be complex• Beyond traditional tractor operator experience• Need feedback for algorithm training and product

refinement• High-touch service to ensure good customer experience,

gain credibility and market share

Dealers

Direct Servic

e

GROWTH FOR ORGANIC FARMS

• Technology is being refined• Needs direct company

support• No competitors, blue ocean

disruptive technology• Highest margins, recurring

revenue

Direct Weeding service rental • Technology is robust

enough to sell to a network of trained service providers

Partner with Service

Providers• Technology sufficiently

simple to be maintained by farms and dealers

Sell Equipment Via Dealers

Technology Matures

COST OF THE CHANNEL – PHASE I

Yearly Revenue per unit $180K • Rental: $1,500/day ASP (List $1,600)

Productivity assumed 10 ac/day @ $200 saving/ac • Expected utilization: 120 days per year (46% of weekdays)

30 weeks per year, 4 days per week

Yearly Costs per unit ($57K) • Equipment Expense: $15K (5-year amortized)• 1/4 trainer/operator: $20K • 1/4 Transport/Maintenance: $10K • 1/4 Overhead: $12K

Cost of Goods(32%)

Profit + SG&A + R&D(68%)

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RevenueList

Price

Source: Mark Leslie, Stanford GSB / Jon Feiber

THE BUSINESS PLAN CANVAS UPDATED

•Research Labs•Equipment Manufacturers•Distribution Network•Service Providers

•Technology Design•Marketing•Demo and customer feedback

•Cost Reduction•Remove labor force pains•Eliminate bio-waste hazards•IP – Patents

•Video Classifier Files•Robust Technology

•Farming conventions.•Demo, demo, and demo!!•Proximity is paramount

•Organic Farmers•Weeding Service Providers•Conventional Farmers

•Dealers•Direct Service•Indirect Service• … then Dealers

•Asset Sale•Direct Service with equipment rental•… then Asset Sale

Value-Driven

Organic FarmsLow Density Vegetables (lettuce, tomatoes)

Organic FarmsHigh Density Vegetables (carrots, spinach)

Conventional Vegetable Farms ~ $2B

GROWTH PATH FOR AUTONOMOW

Simple Crops 2011TAM $ 445.28 SM $ 95.17 TM $ 92.07

All Veggies 2015TAM $ 796.87 SM $ 356.70 TM $ 351.82

WHAT’S NEXT?

Technological Proof of Concept• Focus on weed identification – harder than

elimination

?

BACKUP SLIDES