tree tran 2.009 orange team final presentation december 12, 2005

Tree TranTree Tran 2.009 Orange Team 2.009 Orange Team

Final Presentation December 12, 2005

Outline

• Customer Needs

• Solution

• Competition

• Customer Feedback

• Market

• Financials

Customer Needs

• Saplings weigh 50-450 lbs

• Difficult to transport, plant, and position in hole

• Cannot handle tree by trunk

Solution: TreeTran

Product ComparisonDolly Toad Tran

Load capacity 700 lbs 450 lbs 450 lbs

Device portability

High Low High

Foldable No No Yes

Lowers tree into hole

No Yes Yes

Affordability $450 $2520 $1200

Video & Feedback

“I can’t believe I just planted a tree with your device! This is awesome… it is exactly what [CityRoots] is looking for!

– Trina Hofreiter, CityRoots

“It’s so easy to move around, even with a heavy tree on it.”– East Campus resident

Market

Industry size:• $33.5 billion spent in Do-It-Yourself

gardening and landscaping• 3 million trees planted privately each year

by individuals

Market

Target customers: • landscapers

• 1.1 million workers

• equipment rental companies• 4000+ nationwide

• non-profit organizations that plant trees• 47 major organizations

Business Model

Tree Tran

distributor

landscapers

equipment rental

companies

non-profit organizatio

ns

Financials

Total cost: $400/unit

Manufacturing Cost Market Penetration

Price: $1200/unit1500 units/year sold

Financials

• IRR=25% with $500,000 initial investment

• 2nd year break even

• 3rd year steady-state: 1500 units/yr sold (2% market)

• $270,000 net profit by end of 3rd year

Profit Growth

Year Year Year Year

AcknowledgementsCourse instructor: David Wallace

Lab instructors: David Gossard, Doug Vincent

Pappalardo staff: Dick Fenner, Joe Cronin, Bob Gertsen, Steve Haberek, Bob Nuttal

Team mentors: Ethan Crumlin (MIT), Ben Linder (Olin)

2.009 instructors, TAs, and Maureen Lynch

Urban Ecology Institute: Trina Hofreiter (CityRoots)

MIT Libraries

References“Community Forest Partnership.” Urban Ecology Institute.

http://www.bc.edu/bc_org/research/urbaneco/program/default.html

“Community Tree Planting Guide - Time for Trees.” Tree Trust. http://www.na.fs.fed.us/spfo/pubs/uf/treeguidehtm/chapter1.htm#Chapter%201

“How to Plant Trees.” The National Arbor Day Foundation. http://www.arborday.org/trees/video/howtoplant.cfm

“Organizations that Plant Trees.” Marshall House. http://www.mhmail.com/Trees.html

“Volunteering and Tree Planting.” The National Arbor Day Foundation. http://www.arborday.org/programs/volunteers/textstates.cfm

Tree Planted Too Deep

Tree Tran Load Rating

Tree Tran in Truck Bed