carbon cultures lecture 4 channels

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Hypothesis: Our Hypothesis: Our initial initial Customers are Customers are Organic Gardeners and Landscape Organic Gardeners and Landscape Professionals Professionals 11 Face-to-Face (3 ear-to-ear) Interviews = 14 11 Face-to-Face (3 ear-to-ear) Interviews = 14 Customer Category Type Terry Lyngso, CA Garden Center Owner Influencer WSU Master Gardener Educational Influencer Mike at the Market Vender/Grower End User Lynda at Lowe’s Big Box Sales ? Influencer ? Home Depot 1 and 2 Big Box Sales ? Influencer ? Parents at Football (3) Home Gardener End User Alice Cummings Landscaper Influencer/end user Phyllis Warmarn Landscaper Influencer/end user Kurt Spokas, MN BioChar Researcher Influencer David Grant Regulatory - Smoke Influencer/end user* Don Swatling Clorox(Kingsford) Market Maker

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Page 1: Carbon Cultures Lecture 4 Channels

Hypothesis: Our Hypothesis: Our initialinitial Customers are Customers are Organic Gardeners and Landscape Organic Gardeners and Landscape

ProfessionalsProfessionals

11 Face-to-Face (3 ear-to-ear) Interviews = 1411 Face-to-Face (3 ear-to-ear) Interviews = 14

Customer Category TypeTerry Lyngso, CA Garden Center Owner Influencer

WSU Master Gardener Educational Influencer

Mike at the Market Vender/Grower End User

Lynda at Lowe’s Big Box Sales ? Influencer ?

Home Depot 1 and 2 Big Box Sales ? Influencer ?

Parents at Football (3) Home Gardener End User

Alice Cummings Landscaper Influencer/end user

Phyllis Warmarn Landscaper Influencer/end user

Kurt Spokas, MN BioChar Researcher Influencer

David Grant Regulatory - Smoke Influencer/end user*

Don Swatling Clorox(Kingsford) Market Maker

Page 2: Carbon Cultures Lecture 4 Channels

Who are the users and customers?Who are the users and customers?

Biochar, so far… this does not include big AgricultureBiochar, so far… this does not include big Agriculture

Landscaper

Garden SupplyCenter

Organic GrowerOrganic Farm

CSA

Non OrganicGrowerFlowers

Big Box Store Retail Nursery

Home Gardener

InstitutionalGrounds

Maint.

End User Blue = CustomerB2B Sales

Page 3: Carbon Cultures Lecture 4 Channels

Clorox CorpClorox CorpKingsford CharcoalKingsford Charcoal

• Kingsford is basically THE major US producer of industrial char from waste wood

• Char is in limited supply when they need to purchase outside the company

• Markets are mostly regional, some times make international purchases

• Procurement of C6 Char would go through/be influenced by the “New Tech” group instead of the standard procurement channels

Page 4: Carbon Cultures Lecture 4 Channels

LandownersLandowners Biochar ConsumersBiochar Consumers

What We Learned

Value Proposition: (confirmed)

clean/safe/cheap waste wood clean/safe/cheap waste wood removal (removal (fact - confirmedfact - confirmed))

Smoke Control!Smoke Control!

DNR would work to promote the technology in order to lower the yearly PM emissions that occur during forest health operations

They need to balance air quality with forest health initiative - usually at odds.

Very excited about the blanket’s potential!

Value Propositions: (Confirmed**)

Carbon sequestration (1 count)

Soil darkening Promotes rich biota

Odor control Not a chemical*

Cheap source of charcoal

Value Propositions unable to confirm:

Interviewees not as motivated by these or did not have enough knowledge

Maximizes fertilizer (lower input needed)

Improved root growth

Drainage/water capacity (less input)

pH, CEC, general soil health

Reduced run-off

Page 5: Carbon Cultures Lecture 4 Channels

LandownersLandowners Biochar ConsumersBiochar Consumers

What We LearnedWhat We Learned

Smoke Control

Plan to speak with loggers about franchising.

The loggers are under contract to dispose of the waste generated in operations - they have all the equipment and fire training. They are limited by days for burning, mostly due to the smoke or PM emissions and weather influencers like temperature inversions or “stale air”.

PRODUCT EDUCATION is KEY!

New product in a niche market

Few readily acknowledged Biochar or the benefits of char as a soil amendment.

Skeptical of the newest “snake oil” but willing to try or use if they could see how it worked.

Influencers also would recommend once they’ve tested.

Cost is always the biggest factor in product choice - ranges from $5 for 2L bags to $10 for a cubic ft (rare case)

No directly comparable product

Page 6: Carbon Cultures Lecture 4 Channels

Biochar UsersBiochar UsersAgriculture: Agriculture: Make contactMake contact What is the value of adding SOC?

What is the value of reducing fertilizer runoff? Nitrification?

How much per acre is spent on inputs?

What are biochar benefits worth?

Retail:Retail:What kind of soil amendments do your customers look for? Varied - some don’t seek advice

What benefit do you see from adding biochar to your product line? Could not answer this

What price range do you anticipate to sell biochar?

Advocates:Advocates:Describe what holds this market back? Education

Who are the early adopters? Organic gardeners

What defines biochar quality? Kurt Spokas

Market Makers:Market Makers:What is the supply availability and pricing trends?

Getting out of the Building - LoopGetting out of the Building - Loop

LandownerLandownerWhat are they paying now?

What is the value of risk mitigation? (fire)

What is improved air quality worth?

Can our technology lengthen the burn season? (policy change)

What is the annual burden of waste removal?

Page 7: Carbon Cultures Lecture 4 Channels

The Business Model Canvas

Distribution

C - SequestrationR.E.Credits

Landowners

Blanket sale/Franchise

Waste Removal

Air QualityImprovement

Landowners-Wood waste generators

IP &Know How

Distributors

Personal Assistance

Direct Sale

Sale of Biochar

Biochar user-Industrial

Biochar user -Retail Gardening

Landscape Designer

Biochar user -Agricultural

Wholesale

Retail

Franchise

Service For Waste Removal

Reliable Low CostChar source

Reduce Run Off

Increased SoilProductivity with

Lower inputs

Crew Training

Secure feedstock

EducationMarketing

RelationshipsWith

Landowners

Blanket Manufacturer

BiocharAdvocates

People

FieldOperation

CapitalFixed costs

Confirmed - no pivot, yet

WA DNR

Page 8: Carbon Cultures Lecture 4 Channels

Still don’t have enough facts…Still don’t have enough facts…(you’ve seen this before)(you’ve seen this before)

- - Retail and wholesale pricing, optimal packagingRetail and wholesale pricing, optimal packaging

Getting the sense that pre-mixed is for the home and casual gardenersGetting the sense that pre-mixed is for the home and casual gardeners

and unmixed is for the professional landscaper.and unmixed is for the professional landscaper.

Price point seems to depend on the performance Price point seems to depend on the performance

- product demo’s would be effective - product demo’s would be effective

- Economic case for reduced inputs- Economic case for reduced inputs

talked to talked to academic experts: (Kurt Spokas)academic experts: (Kurt Spokas), ,

talk to trade/advocacy associationstalk to trade/advocacy associations

- Reduced Run-off- Reduced Run-off

talk to regulators, vegetable pre-processors.talk to regulators, vegetable pre-processors.

- Optimal model for serving landowners- Optimal model for serving landowners

More customer input needed - Customers, Customers,….More customer input needed - Customers, Customers,….