ABSTRACT
Luna’s business model is designed for flexibility and scalability, catering to both the rental-heavy construction market and the sales-oriented events sector. This page details our revenue streams, pricing strategy, and unit economics.
Revenue Streams
We have identified three distinct revenue models to capture different market segments.
1. Local Rental (The “Cash Cow”)
Target: Construction Sites & Local Events (Liguria/Piedmont)
- Model: Direct rental of Luna units including setup and support.
- Price: €125 / day (Standard Rate).
- Cost: ~€50 (Helium + Transport + Technician Time).
- Margin: ~60% (€75/day).
- Advantage: High margin, builds direct customer relationships, validates product durability.
2. Manufacture & Ship (The “Scale Up”)
Target: Rental Companies & Large Construction Firms (Europe-wide)
- Model: B2B Sales of Luna units.
- Price: €1,250 (Unit Price).
- COGS: €650 - €750 (Materials + Assembly + Overhead).
- Margin: ~40-48% (€500 - €600/unit).
- Advantage: Rapid scaling without operational overhead. Shifts logistics burden to the customer.
3. Subscription / “Lighting-as-a-Service”
Target: Long-term Infrastructure Projects
- Model: Annual fee for guaranteed lighting availability + maintenance.
- Tiers:
- Basic (€200/year): Priority support, discounted spares.
- Pro (€1,500/year): Includes 2 replacement units/year + 24/7 support.
- Advantage: Recurring revenue, customer lock-in.
Unit Economics
Cost of Goods Sold (COGS) Breakdown
| Component | Cost Estimate |
|---|---|
| Envelope & Frame | €110 |
| LED & Electronics | €250 |
| Cable & Tether | €30 |
| Assembly Labor (2 hrs) | €60 |
| Packaging & Manuals | €50 |
| Total Production Cost | ~€500 |
| Buffer (15%) | €75 |
| Total COGS | €575 |
Profitability Analysis
| Metric | Rental Model | Sales Model |
|---|---|---|
| Revenue | €125 / day | €1,250 / unit |
| Direct Cost | €50 (Ops) | €575 (COGS) |
| Gross Profit | €75 | €675 |
| Margin | 60% | 54% |
| Break-Even | ~8 Rental Days | ~10 Units Sold (to cover R&D) |
SUCCESS
The low production cost allows us to break even on a unit after just 8 days of rental. This is an exceptionally fast ROI compared to traditional towers (ROI ~12-18 months).
Pricing Strategy
Why €1,250?
- Psychological Pricing: Significantly cheaper than the cheapest diesel tower (€5,000+).
- Authority: High enough to signal quality (not a “toy”).
- Competitiveness: Undercuts Airstar (€3,000+) by >50%.
Why €125/day?
- Market Standard: Aligns with typical generator/tower rental rates (€100-200).
- Value Add: Includes the “wow factor” and zero-emission benefits for free.
Financial Projections (Year 1 - Post Launch)
Assuming 10 active rental units and 50 unit sales.
- Rental Revenue:
- 10 units x 100 days utilization x €125 = €125,000
- Sales Revenue:
- 50 units x €1,250 = €62,500
- Total Gross Revenue: €187,500
- Total Costs (COGS + Ops): ~€80,000
- Gross Profit: ~€107,500
This projection confirms that Luna can be a sustainable, profitable business with modest initial volume.
See Growth Strategy for how we plan to scale from here.