This post was republished with permission from the BDEC, Irvine. For the first post please read The CrashRespond Challenge – Build an App that Sells while in School and Working Full-Time (Part 1).

The app that they are in the process of developing would alert up to three predetermined contacts whenever the person who owns the app is involved in a car accident.

Progress Report
Since our last report, we’ve met with Mr. Robert Stahl, current President of the Driving School Association of California (DSAC) and owner of Dollar Driving School, to discuss potential marketing opportunities with his organizations.

Mr. Stahl loves the CrashRespond concept, and we discussed various ways by which his company and other driving schools could act as a marketing channel for our app. We also learned some encouraging facts about the driving school industry:

• There are approx. 500 driving schools in California, in sizes that range from sole proprietorship and one car, to national corporation with a fleet of cars.
• There are 250,000 new drivers per year in California.
• There are approximately 3 million new drivers per year in the United States.

This means that among our target audience, CrashRespond has a yearly revenue potential of between $112,500 – $187,500 in California, and between $1,350,000 – $2,250,000 nationwide. Here’s how we calculated these projections:

• Selling price of between $3-$5
• 30% smartphone adoption rate among teens * 250,000 * 50% Android market share = 35,000 potential customers (based on the smartphone adoption research we discussed in our previous post)

By creating marketing partnerships with Mr. Stahl and the driving schools, we’ll gain a marketing channel that extends directly to the consumers we need to reach: parents of new drivers. We plan to use this channel by launching a sales competition among the driving schools and instructors, with prizes going to the individual or group with the most sales in a 3-6 month period. The details of this competition will be worked out as we get closer to launch.

The only cost to CrashRespond for this marketing opportunity is the $3-5 thousand in contest prizes and the approximately $0.25 per sale cut that the driving school association would earn for their cooperation.

What do you think about this opportunity? Do you believe it is as exciting as we do? Would you do something differently? Let us know in the comments, we’d love to get your feedback!