Snow is falling in the mountains and we're excited to go skiing and to test some new prototypes!
In This Update:
- A note for EU Customers
- Loop System Update
- Dragon's Den
For EU Customers
If you’re interested in purchasing a PL1, please contact us directly at info@zoaeng.com for a quote. We can ship units to Europe; however, please note that current shipping costs are quite high. We’re actively working to establish local distribution in Europe to make the process more efficient.
For now, PL1s may appear as sold out on our website for European customers until we can provide a more streamlined solution.
Loop System Updates
We’re making solid progress developing the loop system.
My current focus has been the transmitter and receiver to allow users to run the loop system independently.
We’ve set a requirement that this system will be backwards compatible with existing PL1s, by simply plugging the receiver into the throttle connector on the PL1. A built in solution could be a little less complex and a little more elegant, but this is ultimately a more flexible option for us and lets existing customers enjoy the loop system without having to buy a whole new unit.
Battery life and range are the key performance metrics for us. It’s important that the signal can remain persistent during the whole ride up in uneven and sub-alpine terrain and throughout the day.
We’re experimenting with a variety of designs to ensure the product feels good to use, looks good, and is practical for us to build and ship. We’ve 3D printed a number of very simple designs for the shell of the remote, to get a sense of the weight, fit and feel.
We’re looking forward to testing some crude prototypes in the field, now that the first snow has begun to fall in BC’s coastal mountains.
Dragon’s Den
We entered the Den back in May and we were excited and a bit nervous to finally watch it earlier this month. If you missed it and want to watch it is currently available to stream on CBC Gem.
Big thanks to the production team for going above and beyond to make an awesome set for us where we could actually show the product being used!
The editors had a pretty significant task to cut down what was roughly an hour long session down to less than 10 minutes. Ultimately, I’m happy with our segment. It turned out entertaining and did a good job showing the product. At the same time it feels quite different from my experience in the Den and I think it’s worth sharing some of the details that didn’t make the cut.
- The Team: No mention of Andrew made it into the cut and that was disappointing. We’re a small team and Andrew’s an important part of that. He has been crucial to getting Zoa where we are.
- Balance Sheet: $300k is brought up in the segment and is approximately our total losses from the very start of the project to now. It is not our debt, which is actually quite small. For me, this is a point of pride. Many companies spend far more than we have to develop a product like ours and get it to market.
- Unit Economics: None of our unit economics made the cut, and it’s at the core of our value and our confidence in the company. Our margins on the PL1 are not particularly high, but our B2C model allows our overall unit economics to be solid and highly scalable. Our cost to acquire customers, the biggest hurdle for most B2C brands, is very good. This was acknowledged by the Dragons but didn’t make the cut.
- Market: Only a brief mention of the market and opportunity made the final cut. Backcountry skiing and snowboarding are two of the fastest growing sports in the world. We have good visibility on past unit sales for other backcountry specific categories, and we’re confident there’s a huge opportunity for us even if we remain relatively niche.
Our biggest challenges are a lack of capital combined with seasonal cash flow. Balancing operating expenses, inventory purchases and marketing costs throughout the year is tough, but we’re actively working on ways to smooth that out. A modest capital float would give us the stability we need to keep innovating and growing.
When we pitched at the Den we had already started work on the loop system, but didn’t feel that we were far enough along to include it in our pitch. Now, as we head into winter, it’s exciting to see how much progress we’ve made and how much interest it’s already generating.
We are still looking for investors and partners to help us grow. If you’re curious about more business details don’t hesitate to reach out to me directly (rbutton@zoaeng.com)
Thanks for following along with our progress!
Let it snow,
Zoa Engineering Team