Business Opportunity

A few weeks ago when my future was looking grim, I was asking people I knew what they thought a good business opportunity would be.

I stumbled around in my thinking and finally landed on the idea that ‘green energy’ was the future but I was still stumped as to what niche could be filled that would fulfill that idea.

I found the answer to my question:  LED light bulbs.

The problem with LED’s right now is that they are cost prohibitive.  However, I don’t know why this is the case since single, white led’s are pretty damn cheap in bulk.  I have to believe that there is something else that’s keeping the cost high.

So the task is, find out why the cost is so high, and then find out what it will take to cut it so that it is comparable to at least the low wattage florescent bulbs that have taken over.

Now I know that the logic behind the higher costs is the ROI due to the longevity of the bulbs (10 years at least).  From a business standpoint it makes sense to keep the cost to lifespan ratio equal to incandescent BUT from a marketing standpoint, cheap bulbs sell.  When I’m in a store and holding a 40 dollar LED and compare it to a 10 dollar florescent – there’s no contest, I’m buying the cheaper option.  So, in order to really penetrate the market, LED makers will have to bite the bullet and drop the cost to lifespan ratio massively.

Just to note, those florescent bulbs are a huge cost savings overall at the moment.  The real problem with them is that they are toxic and so disposal is a major problem.  Mercury is very poisonous to humans and once the body ingests it, it remains forever in the body.  Over time, a person can ingest enough (even through skin contact) to cause real damage to the body.

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~ by aeroslin on December 2, 2008.

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