Economics
Our home has been designed to accommodate a broad palette of target customer segments with diverse geographic locations, varying family sizes and a range of energy requirements. Here we describe the broad target markets for which this home was designed. In addition, we show how our home provides a customizeable, yet highly replicable design that enhances livability, buildability and flexibility for our potential buyers.
TARGET NICHE AND MARKET OPPORTUNITY
Our target niche is the affluent sector of a group commonly referred to as Cultural Creatives or Lohasians. (LOHAS=Lifestyles of Health and Sustainability) Lohasians appreciate green building supplies, socially responsible investing and "green stocks," alternative healthcare, organic clothing and food, personal development media, yoga and other fitness products, ecotourism and more. Specifically, we are targeting Lohasians who are either first-time homebuyers, approximately ages 25 to 34, and empty-nesters, ages 45 to 62. First-time homebuyers who have not started families and those whose children have moved on have lower spatial requirements.
DISTINCTIVE FEATURES
To increase our market reach, our house was designed to be easily and cost effectively scalable in size. To achieve the size flexibility desired by our target markets, we made a number of design and engineering decisions. First, we optimized the size of each expansion module, 195 sq ft, to allow home sizes and configurations that matched our customers' needs and space preferences. Each module is well sized for a typical single family room addition such as a new bedroom for a growing family or a suite for an elderly parent. Furthermore, these expansion modules are easily attached in a variety of configurations, thus allowing the basic home to be re-configured not only in space but also in shape. Finally, the relative mobility of our house modules make transportation to remote sites feasible and comparable to a simple mobile home move.
Our scalable design approach also makes home additions possible without costly re-engineering or redesign. The [re]FORM house embeds all the major electrical, HVAC and plumbing systems in the starter module. Subsequent expansion units are added with plug-in electrical and HVAC connections. For example, all of the electrical wiring in each module is self contained and easily connects to the power system (photovoltaic panels or grid) through a subfloor connection. The home's water and plumbing needs are also serviced by the first module. While the complexity of the starter module is somewhat higher; troubleshooting problems and maintenance is localized and minimized. Furthermore, since the expansion modules are quite simple from a construction and electrical systems standpoint, we minimize costs for these additions and enhance manufacturability. Moreover, a mirror type expansion of the basic home would allow sharing of plumbing and electrical control and battery systems and still offer significant size scalability.
Finally our technology choices also enhance size scalability as well. First, we are maximizing PV energy generation since each expansion module's roof is designed to accommodate full coverage by PV panels. As new modules are added, PV panel energy can be easily connected to our battery systems. Second, our choice of a 1.5 ton heat absorption (Rotartica) unit allows us to more than double the living space without adding another absorption unit. Thus, adding new living space can be added without more HVAC equipment and will better utilize our existing systems. Finally, our EVTs can be cost effectively added (or repaired) since they are mounted as privacy barriers and are not affixed to the structure itself.
This home was also envisioned to be scalable in terms of "green" technology. Given our target segment will have varying degrees of disposable income or different location constraints, we proposed to offer this home in four upgradeable configurations labeled as follows: the Simply Green, the Temperately Tubed, the Premium Panel and the Solar Supreme version. The Simply Green home would be the starter module with 3 expansion units built with sustainable construction techniques and energy efficient materials such as soy insulation, rain screen and radiant heating and cooling, This house would be priced at about $340 per sq ft and connected to the power grid. The Temperately Tubed version would be the Simply Green model adding thermal heating and cooling powered by the evacuated tubes. This price for this home would be about $443 sq ft. and it would be connected to the power grid. The Premium Panel system would be the Simply Green base with Solar PV panels for electrical and thermal power. Pricing for this version is estimated to be $439 per sq ft. Finally the Solar Supreme system would include the basic green home with solar electrical and thermal energy systems and would cost about $542 per sq ft. We believe this approach allows the target consumer to match their desire for an eco-friendly home with disposable resources and to create a home that meets their living space needs.
LIVABILITY, BUILDABILITY AND FLEXIBILITY
In summary, this home provides both open and private spaces which are adaptable to the needs of both traditional and 21st century families. Livability efficiencies are gained through the design of the starter module system with the highly economical expansion modules or by utilizing the solar technologies in a upgradeable manner. Buildability of the home is simplified by confining the control, electrical and plumbing systems in the technology sophisticated starter module.
Moreover, since 75% of the living space consists of expansion units that are simply constructed with a minimum of materials, we gain scale economies. Finally, our design approach offers tremendous flexibility in home size, configuration, site location and energy generation technology, all which are available in incremental segments that reduce waste and increase utilization of the basic unit. Indeed, we are confident this home will appeal to broad segments of the "green" consumer and be adaptable to their ever changing life needs.
