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Sustainable Modular Homes
Jamie Britto, Nicole DeJonghe, Max DuBuisson, Kelly Schmandt
www.bren.ucsb.edu/~modular
High End, Low Cost
Addressing Customer Needs
•Affordable–Continual savings
•“Green”•Rapid construction•Customization•Human Health
High End, Low Cost
How Our Product is Different
Compared to:
Initial Cost
Build Time Utility Costs
Human Health
Environmental Impact
Regular site-built Lower Faster Lower Better Lower
Sustainable site-built Lower Faster Similar Similar Lower
Regular modular Higher Similar Lower Better Lower
High End, Low Cost
Market Segmentation• Large developers and municipalities• Immediate demand in hurricane-
devastated areas
High End, Low Cost
Market AnalysisSize/Growth Rate
– Modular housing is the fastest growing segment of housing market(National Modular Housing Council)
– 10% of modular market
1%Green Modular
9%Regular Modular
The Housing Market
High End, Low Cost
PricingFor 1,500 ft2 single-family home
Costs Revenues
Manufacturing $75,000 $100,000
Transportation $10,000 $10,000
Installation/Finishing $25,000 $37,500
Totals $110,000 $147,500
Price per ft2 $98
(The additional on-site costs of contractors will increase the price for the customer)
High End, Low Cost
Projections/Milestones
($5)
($4)
($3)
($2)
($1)
$0
$1
$2
0 1 2 3 4 5
Millio
ns
5 Year Cash-Flow Estimate
High End, Low Cost
Financial AnalysisRevenue Estimates
Revenue
Sales (40 homes) $5,900,000 100%
COGS ($4,400,000) 75%
Gross Margin $1,500,000 25%
Expenses
Sales & Marketing ($175,000) 3%
Research & Development ($90,000) 1.5%
General Administration ($40,000) 0.7%
Total ($305,000) 5.2%
Operating Profits $1,195,000 19.8%
High End, Low Cost
Green Pieces: a partnershipWorkshop/apd• Architectural expertise
Bren School graduate students• Environmental expertise
High End, Low Cost
Green Pieces
Why is this a good opportunity?– Solves a real problem– Impending building regulations– Demand is growing– Strong team – Solid profitability– Technology exists and is evolving
High End, Low Cost
Entering the Market
• Target individual customers• Partnering with construction and
manufacturing firms• Initial revenue model based on semi-
customized designs
High End, Low Cost
Intellectual Property Strategy
• Automatic copyrighting of designs• Contractual agreements
– Establish ownership and liability– Client is only lawful user
High End, Low Cost
Technical Feasibility
• Established methods of construction• Innovative design and integration• Alternative materials and appliances
already exist
High End, Low Cost
Prototypes
• One project under construction– GreeN.O.LA in New Orleans
• New prototypes being designed– Single-family home
High End, Low Cost
Our customer is pained
I want to build my own home, but I have to:- rent- live in my parent’s home- have my parent’s buy me a house- move to a less ideal location- choose a less than ideal home
Time consuming to build a home on siteHomes negatively impact the environment &
human health