The Kinkajou Bottle Cutter

  • Category:
    Management
  • Document type:
    Case Study
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    391

Title: The Kinkajou Bottle Cutter

Lehoux has educational background on electronics and telecommunication. He started to think on venturing into his own during his time at Sunwire Inc. and in 2012 discovered Kickstarter which crowd sourced financing. He came up on the idea after coming across a cut wine bottle being used as a drinking glass. This is where he began on the idea of cutting glass bottles. He started investigating designs used in bottle cutter tools and how he could improve them. He started looking for a name for his product and settled for Kinkajou. When he realised the name was owned, he registered the kinkajou for only $10 instead of $5,000 for Kinkajou. To succeed in Kickstarter, Lehoux had to prepare through prototype, video, goal and timeline.

The kinkajou gained positive evaluation and project was launched in 2012. Lehoux worked hard to raise awareness and looked for advice from other project owners. He was advised to consult his backers and gain help in getting noticed on websites and blogs.

Lehoux got enquiries and offers from Chinese manufacturers. The project was also able to reach the funding goal and surpassing it by $6,000 in Kickstarter. The firm used a website through an e commerce provider Shopify. US orders were being sent through Webgistix which took orders from China and took them to customers based on Shopify guide. For Canada, Lehoux carried out shipping himself.

The company faced several issues which included running out of stock and problems in alignment of scoring wheel. The bottle cutter was gaining a lot of interest. In Mexico and Central America, it was being used in recycling old bottles which acted as a source of income by selling products to tourists. This made the device to be promoted as environmental friendly. He also started contemplating on use of discarded tops.

While testing the revised Kinkajou, he was thinking whether he should sell the product with Wal-Mart. He knew Wal-Mart would want a 50% margin or more which would leave him with little compared to what he was making now. Despite this, Wal-Mart had a lot of outlets which gave compelling possibilities. Despite this, Lehoux was not sure of his manufacturer capacity as well as on whether to improve on his molds.

Reference

Fisher, R & Rixon, A 2014, contemporary issues in entreeprenuership, Ivey, pp. 5-41.