Question
Raven Carbon Fiber is a composite manufacture aimed to support the automotive and aerospace industries. My struggle is that we are not focused on a particular product line, but rather a contract base. This means we build multiple products for multiple clients.
For the SAM, do I calculate (estimated # of contracts x avg unit volume x avg price per unit = SAM)?
I am struggling to come up with an appropriate TAM. The market is pretty well established already, however there is one key element that we are bring to the U.S. to support the need for lighter and more efficient vehicle manufacturing. If I focus on that aspect, how do I add in the other parts of the company's manufacturing. Or do I somehow try to add that feature into the SAM and calculate for a realistic larger cliental base.
Example SAM = 10 contract x 250 avg unit volume x $1850 avg price per unit = $4,625,000
Example TAM adjusting for new capabilities = 20 contracts x 300 avg unit volume x $30,000 (adjusted avg price to incorporate new manufacturing market feature) = $180 million.
Or say the current U.S. market requirement for this manufacturing feature is roughly 50 companies needing avg volume of 200 unit annually with estimated price point at $60,000 per unit for annual market of $600 million. And drop the other side of manufacturing that we started with.
I am pretty sure that I am making this way more complicated than it needs to be or missed the mark completely.
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