Sustainable Modular Homes
Jamie Britto, Nicole DeJonghe, Max DuBuisson, Kelly Schmandt
www.bren.ucsb.edu/~modular
Our Product
sustainable – modular – home
High End, Low Cost
Addressing Customer Needs
•Affordable
–Continual savings
•“Green”
•Rapid construction
•Customization
•Human Health
High End, Low Cost
Customization
High End, Low Cost
Human Health
High End, Low Cost
Technical Concept
Green
Pieces
Sustainable
Affordable
Modular
High End, Low Cost
Floors and walls
built at stations
High End, Low Cost
Pieces are
assembled at
another station
High End, Low Cost
Wrapped and
High End, Low Cost
ready to go!
Solar
Panels
Green
Screen
Fly-ash
Concrete
High End, Low Cost
Passive
Sunlighting
Green
Roofing
Sustainable
High End, Low Cost
Wood
Mixed-use
development
How Our Product is Different
Initial
Cost
Build
Time
Regular
site-built
Lower
Sustainable
site-built
Regular
modular
Compared to:
Utility Costs
Human
Health
Environmental
Impact
Faster
Lower
Better
Lower
Lower
Faster
Similar
Similar
Lower
Higher
Similar
Lower
Better
Lower
High End, Low Cost
Regional Market Focus
High End, Low Cost
Market Segmentation
Customer focus
• Families, baby-boomers, LOHAS
High End, Low Cost
Market Segmentation
• Large developers and municipalities
• Immediate demand in hurricanedevastated areas
High End, Low Cost
Market Analysis
Size/Growth Rate
– Modular housing is the fastest growing segment
of housing market
(National Modular Housing Council)
– 10% of modular market
1%
Green Modular
The Housing
Market
9%
Regular Modular
High End, Low Cost
Pricing
For 1,500 ft2 single-family home
Manufacturing
Transportation
Installation/Finishing
Totals
Costs
$75,000
Revenues
$100,000
$10,000
$25,000
$10,000
$37,500
$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
$2
Projections/Milestones
Millions
$1
$0
($1)
0
1
2
3
4
($2)
($3)
($4)
($5)
5 Year Cash-Flow
Estimate
High End, Low Cost
5
Financial Analysis
Revenue Estimates
Revenue
Sales (40 homes)
$5,900,000
100%
($4,400,000)
75%
$1,500,000
25%
($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%
COGS
Gross Margin
Expenses
Sales & Marketing
High End, Low Cost
Green Pieces: a partnership
Workshop/apd
Bren School graduate students
• Architectural expertise
• 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
High End, Low Cost
Questions?
High End, Low Cost
Entering the Market
• Target individual customers
• Partnering with construction and
manufacturing firms
• Initial revenue model based on semicustomized 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
GreeN.O.LA
• Mixed-use residential community New Orleans’ Ninth Ward
High End, Low Cost
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 site
Homes negatively impact the environment &
human health
High End, Low Cost