7A- Testing the Hypothesis

The opportunity I would like to pursue is one that brings a way to have brokers for car buying, potentially through an app, this is because many people do not know the value of different cars and often have a hard time negotiating price.

The who: Anyone wanting to buy a car.
The what: Car buyers often over pay for a car, or do not understand car values.
The why: A knowledgeable car broker would be able to negotiate the price for buyers.

Hypothesis: I believe many car buyers will want this service available to them, so they understand the value of the car they are considering buying and have the means to get a fair price. Although not everyone will need this service I believe there are many people willing to pay a "car broker" to get a better price. Often people think that car salesmen lead to them overpaying for a car, but I see it as car buyers not being very shrewd negotiators.

Interviews: From the interviews I have found varying information, but all promising for the opportunity to exist. I must give notice that all the interviews were men, so some bias may exist. I first began each interview by asking a hypothetical that stated: if you were searching the market for an automobile would you be willing to pay a car broker to assist you in finding a good deal and negotiating price? The majority of the people I interviewed said they would be willing to pay for a car broker, although one individual that was an avid car enthusiast said he would consider the idea, but he believed he had enough knowledge to find good prices. I followed up the question by asking what a fair percentage of the cars cost would you be willing to pay the broker. Many of the people had different values, and one gave me an idea all together. The answers to this question consisted of 3%, 2.5%, 3.5%, and 5%. One person said that the percentage should be based on the cost of the car and how much money the broker saved the buyer. Next, I asked the participants in the interview what they believed would be the best way to deliver the service to the customer. Many of the participants said that the initial parts of the service should be via website, while the actual buying of the car should be an in person service where you meet with a broker. The final question I posed to the participants was if the service should be for the average consumer of automobiles, or if it should be for rare or exotic cars. Three people said that the service should be for rare and exotic cars, while two of them believed that the service should be available for the average consumer.

I learned much about the opportunity I posed from the interviews, and even gained some insight to good ideas on how the opportunity may be done. Through the process of the interviews I learned that the opportunity still exists and that many think the opportunity has potential. I now know that the cost should be based on multiple factors, and that the market is more or less considered niche due to the participants saying that the idea is better for rare or exotic cars.