Price Point Lowering


#1

How much do you think bulk ordering and manufacturing will lower the cost of Soylent? Is their a “magic” price to make it more attractive to people to try it out? Thoughts.


#2

I’m not going to be a regular customer at the current price. To get me to buy it has to be on par with what I spend on groceries. That would mean about $166 per 28 days.

DIY Soylent is substantially cheaper, (Something like $114 for me currently) but I’d be willing to pay more than that for the convenience and reliability of Corporate Soylent. However, I’m not willing to go over what I spend for regular groceries.


#3

Agreed, I find that a lot of the D.I.Y Soylents come in around $30-50 a week. I see no reason why they couldn’t get the price down to $39.99/week or $149.99/month


#4

It all depends for me. I ordered a month worth. If it does everything I hoep it does. Satisfies my hunger, provides weight loss, provides me with more energy, makes me healthier, tasty enough for long term use, makes me feel good. Im willing to pay what I originally paid.


#5

As a US resident, and being over the average height and weight (in which the US government says an average male spends about 400 a month on groceries, without coupon use), I personally find the price cheaper. However the ‘magic’ price point would depend on the opinions of those looking to buy it. It seems many non-US countries spend less on food, but more of their income than most people in the US (i.e. 200USD/month and 15% of total income). The cost of Soylent may lower with bulk orders/manufacturing, but what price reduction is good?

My issues with lowering the price are:
1)research: if they make money, they can afford to make different blends and afford nutritional studies without a new crowd funding campaign.
2)stockpile: If they lower the price they can’t afford to have some sitting waiting to be shipped/ordered, which may make reorders take longer to fulfill.
3)growth: if they lower the price, will they be able to expand their business to new countries and new people.
4)shipping: if I recall, part of the cost is shipping expenses, and if they lower cost, they may end up making the consumer pay shipping fees.

The issue I find with the DIY method is lack of control/safety. If someone doesn’t really know what they are doing or measures wrong, they could make themselves sick, or consume contaminated products. While that may not happen, I am paranoid and don’t like leaving such things to user-error. A manufacturing process like Soylent has so many checks, balances, and tests that anything wrong with it will be fixed before its shipped.


#6

Those are issues with lowered profits, not lowered price. If their manufacturing costs come down, then they can lower their price without lowering their per-unit profits, and the lower cost should expand their user base allowing them to increase profits.


#7

By lowering their price they risk lowering their profits. There is no guarantee that lowering the price will bring in more customers. It should bring in more customers, but you should also always plan for worst-case scenarios.


#8

You don’t risk lowering profits if you lower your production costs. your per-unit profits will stay the same in that case. Your concerns are only valid if you lower your per-unit profits.


#9

There is also no guarantee that the production costs will lower. One could argue that researching different blends and studies are a part of their manufacturing costs.


#10

Doesn’t it make sense that DIY soylent is cheaper? No money spent on warehouses, other facilities and renting buildings, paying employees, etc… Anyways, Soylent does cost more than I would spend on groceries currently. However, I am willing to try it anyways due to the convenience and the possible health benefits.


#11

They also have a ton of startup costs they have to make up. That alone means long-term production costs less. Plus, ; there are economies of scale; for things like the oat flour, for instance, they put a huge demand on the supplier, which is why there were delays. The more unusual it is, the more it costs, and by creating a regular demand for it, the supplier can ramp up production and take advantage of economies of scale as well.


#12

When I signed up with my $'s I assumed a reasonable percentage was going to development. I think that cheap, nutritious food will make the world a better place. It’s possible we are doing more good “giving” money for Soylent than we would giving money to charities. A couple weeks ago I read something about how giving malnourished children healthy food in 3rd world countries would actual raise IQ’s by 10 to 20 points. Obviously the increase in developed countries wouldn’t be as much, but think about what would happen if a percentage of the humans on the planet were measurably smarter than they are now. Would there be less wars in Africa?

In any case, I bought Soylent. I will probably split between Soylent and DIY while it is more expensive. I’ve enjoyed fiddling with the recipes. Also as long as I think the company is trying to make the world a better place. It could all be crap but I think they are doing something that will make the world measurably better. I know I can’t say that at my job.

Of course you could have the other side which is that making people smarter just means somebody comes up with the genetically engineered virus that kills the whole human race. I’m hoping that doesn’t happen though. :smile:


#13

I suppose you mean the rice protein isolate with the finest mesh size available, in which Rosa Labs is, currently, its only buyer? They got about 1.5million USD from companies that give money to start ups, which begs the question, whose really funding their manufacturing startup? If its not us backers, then how much are their manufacturing/sourcing costs? I don’t know how they calculated the current price of Soylent, but maybe they made a mistake and all we know, the price may go up. Yes it may reduce with scale, but even that only has a limited effect.

My point is, don’t hope that they lower their prices then get upset when they don’t. Will it be nice if they do? Yes, but I for one am not holding my breath.


#14

By their own goals, if they are unable to lower the prices they have failed. making it cheap and easily accessible is one of their top priorities.


#15

Well we now have an answer to this question. Fail.


#16

DIY FOREVER

character limit


#17

Who ever claimed the initial price would be lower? The long-term goal is to lower prices, that doesn’t mean it can be done immediately.


#18

I have DIY with 3000Kcal for around 150$ a month
, so this is quite expensive for me at least in the beginning :confused:


#19

Boy what in the world are people eating to spend under $200/month on groceries? Maybe for a single person who lives on very simple things and definitely does not drink alcohol or consume meat (neither of which do I, for that matter) but for the average person living in places like Silicon Valley or Manhattan etc.?? Not to mention how much time are you spending shopping for those groceries, preparing them, cooking them, cleaning up after them…

So many people seem to value their time at zero.


#20

Whenever someone makes this comment, the only way I can understand it is to imagine you eat about 2 meals a day from a restaurant and grocery shop for your third meal. Does that sound about right to you?

If you actually make all your meals (and it’s not that time-consuming) using grocery store ingredients, it is difficult to spend over $200 a month. I guess the exception would be if you were on the paleo diet and subsisting on meat and fresh vegetables alone, something like that.