Business Plan For The Sharing Economy: Consumer Driven Tender Platform For Services
Households and companies can ask for bids for smaller projects or seasonal services such as gardening, snow shovelling, car cleaning, house cleaning, inventory management, smaller house renovation or interior decoration projects or other non-frequent services.
The utilisation of spare work hours is most likely attractive for many persons that are not fully occupied – and there are many of those.
For the consumer it can be assumed that there will be an interest in buying services to complete projects that would otherwise not be completed and that present a clear benefit to the consumer.
The solution for the P-to-P services exchange will be, as in many other cases, an online market place.
The toughest nut to crack here is how to make the cost for the services low enough to generate demand, the rental income high enough to attract supply and the transaction cost so insufficient it doesn’t have a negative impact on the number of transactions while at the same time generate enough transactions so the very low fee per transaction will be multiplied into an income large enough to justify a business.
The transactions also have to be safe enough for buyers and sellers to disregard the risk of using the market place. Using an escrow service to keep the funds with the market place until a safe transaction is completed is an answer to the safety concerns.
The total investment needed is what it takes to develop the system and do the marketing needed to overcome the transaction hurdle defined as when transaction income surpass running maintenance and marketing costs.
Profit is generated from the percentage or fixed price charged for each transaction. The number of transaction must be high enough so that “no of transactions * income per transaction > than system maintenance + running marketing costs when the system is developed and supply and demand marketing has generated enough transactions to cover the continuous marketing and system development.
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