Part 1. Cover Sheet with Elevator Pitch
Ms. Claudia A. Winslett, Ms. Maddy M. Hillard
10, 10
Temperature Specific Color Changing Stickers
Advanced Materials
Commercialization Plan
Elevator Pitch: Temperature specific color changing stickers are color-changing stickers that can be
permanently applied to any item, most notably kitchenware. This safety precaution changes color as the
object it is applied to surpasses a safe temperature. Because of the color change, consumers are warned
when an object becomes too hot to handle without the risk of burns.
Part 2. Executive Plan
The temperature specific color-changing sticker instantly provides a physical representation of
temperature to prevent burns. It is most notably applied to dishware, but is applicable to a myriad of
objects. OliKrom thermochromic pigment is used to induce a color change as the sticker surpasses a safe
handling temperature, over 45 degrees Celsius or 113 degrees Celsius. Humans can develop burns from
heat at this temperature. OliKrom thermochromic pigments have a memory effect; the ability to change
color at a specific set temperature, and then return to the original color. A strong dishwasher safe
adhesive, Aquatic GOOP, will be used to bond the product to any item. Constant variable costs include
adhesive, metal sheets, and OliKrom thermochromic pigments. Marketing, advertisements, and website
design will also be included in our initial cost projection. The total unit cost for one temperature specific
color-changing sticker is $2.30. However, our selling price will be $4.50. This innovation is a precaution
for any consumer handling hot objects.
Part 3. Problem Summary and Proposed Solution
Consumers often burn themselves while exposed to hot objects because touch is almost always the only
way to determine temperature, often leading to burns. However, the temperature specific color-changing
sticker eliminates risk of injury through a physical indication of unsafe temperature, color change.
Part 4. Summarize Stem Concepts and Principles Underlying the Overall Plan
The most important STEM concept is the use of color-changing thermochromic pigments.
Thermochromism is the ability of an object to change color due to temperature change. Temperature
specific color changing sticker use OliKrom thermochromic pigments. A unique aspect of this product is
the ability to change color at a specific temperature. Other paints do not have these features. Temperature
specific color-changing stickers are dependent upon the color change occurring at exactly 113 degrees
Fahrenheit, the temperature at which humans begin to feel pain. Humans experience pain to protect us
from doing damage to our bodies. For instance, when touching an extremely hot surface, you feel pain,
and move away from the object. Pain from heat is experienced through nerve receptors. When touching a
hot surface this receptor sends warning messages to the brain.
The last STEM concept is the memory effect in OliKrom pigments. OliKrom is a private company
primarily used for industrial research. OliKrom would not answer any questions about the manufacturing
process, specific color change, memory effect, or provide a sample because we were students. Therefore,
our team cannot explain the specific concepts involved in OliKrom pigment technology such as the
memory effect and the temperature specific color change.
Part 5. Commercialization Assessment of the Overall Plan
Problem, pain point or market opportunity:
We frequently handle hot objects during our lives. Accidental burns are extremely common while
handling hot objects, especially because there is no physical representation of temperature.
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Proposed solution:
The small, temperature specific color-changing sticker can be permanently adhered to any surface and
changes color when the object it is applied to surpasses a safe handling temperature.
Target consumers and intended users:
The target consumers for this product are middle class families because it is an affordable safety
precaution for family budgets’. However, this product is not limited to one specific consumer pool
because it can be used by anyone who desires an instant indication of temperature.
Competitors:
There is a lack of competition because this is a new concept. Similar pre-existing products consist of color
changing mugs.
Customer value proposition and competitive advantage:
The temperature specific color-changing sticker can be applied to any object as a safety precaution
without a large competing market. Customers will instantly know when an object is unsafe to handle
through color change.
Principal revenue streams expected:
Marketing to families with children will increase demand, because temperature specific color-changing
stickers are a precautionary measure. Convenience of attaining and utilizing the product will also factor
into consumer demand. We will promote our product over a multitude of social networks, including
Facebook, Instagram, Twitter, and our own website. Marketing will also include advertisements on
popular websites, flyers, and commercials on local radio or television. We surveyed potential consumers
about product desirability. One hundred percent of the target market state they would buy more than one
sticker. One hundred percent of interviewees also said they did not have any product similar. This visual
indicator will easily warn consumers who burn themselves on stoves, pans, and other objects. Our team
also created a YouTube video that explained the problem and proposed solution. The link is:
https://www.youtube.com/watch?v=hkpPVq1BYIc
Projected one-year revenue statement: (Figure 1)
Year
Projected Unit Sales
Projected Revenue
Year 1 Quarter 1
100(units) *$4.50
$450.00
Year 1 Quarter 2
150(units) *$4.50
$675.00
Year 1 Quarter 3
200(units) *$4.50
$900.00
Year 1 Quarter 4
250(units) *$4.50
$1,125.00
Year 1 Annual Projection
700(units) *$4.50
$3,150.00
Our business will have no seasonality because the problem is constant. The units sold will start slow in
the first quarter because the product is new to the market. Throughout the year, the unit sales should
increase gradually because we will begin to market and advertise. Each unit is sold for $4.50 and the
annual sales projection is seven hundred units. The projected first year revenue is $3, 150.00.
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First Year Income Statement (Figure 2)
# Units
Revenue:
Unit Price/Cost
Total
700
$4.50
$3,150.00
700
$1.30
$910.00
700
$1.00
$700.00
Credit card Fee (3%)
700
$0.14
$98.00
Total Variable Costs:
700
$2.44
$1,708
Cost of Goods Sold:
Shipping and handling
Gross Profit:
$1442.00
Marketing:
$500.00
Legal Fees:
$500.00
Paint Brushes:
$10.00
Website Design:
$300.00
Total
Fixed Operating Costs:
Pre-Tax Profit:
Taxes
Net Profit:
$1,310.00
700
$2.20
$132.00
$132.00 * $0.25
$33.00
$132.00- $33.00
$99.00
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Three Year Income Statement (Figure 3)
# Units
Revenue:
Unit Price/Cost
Total
2,900
$4.50
$13,050.00
2,900
$1.30
$3,770.00
2,900
$1.00
$2,900.00
Credit card Fee (3%)
2,900
$0.14
$406.00
Total Variable Costs:
2,900
$2.44
$7,076.00
Cost of Goods Sold:
Shipping and handling
Gross Profit:
$5,974.00
Marketing:
$1,500.00
Legal Fees:
$500.00
Paint Brushes:
$30.00
Website Design:
$300.00
Total
Fixed Operating Costs:
Pre-Tax Profit:
Taxes
Net Profit:
$2,330.00
2,900
$2.20
$3,644.00
$3,644.00 * $0.25
$911.00
$3,644.00- $911.00
$2,733.00
These two income statements; the first and third year; show the growth of our profit over time. Even
though the temperature specific color-changing stickers have a low profit margin compared to other
products, the income statements show financial feasibility through positive net profit.
Principal startup and operating costs to be incurred:
The materials for our first year of production are included in figure 4. Legal fees are a one-time cost in
order to establish basic intellectual property rights. Marketing fees are a yearly cost to promote our idea.
Website design will be a one- time fee to promote the temperature specific color-changing stickers and
ensure easy access to product information.
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Initial Investment Needed to Start Business (Figure 4):
Item
Cost
Paint Brushes
$10.00
GOOP Super Glue
$12.80
Metal Sheets
$6.99
OliKrom Paint
$602.00
GOOP Adhesive Packet
$14.00
Website Design
$300.00
Legal Fees
$500.00
Marketing
$500.00
Total Startup Investment
$1,945.79
Economics of One Unit (Figure 5)
Selling Price per Unit:
Cost of Goods Sold per Unit:
Metal Sheets for one unit
GOOP Adhesive (sealant) for one unit
Packet with GOOP adhesive for one unit
OliKrom Thermochromic Pigment for one unit
Labor Cost for one unit (.03 hr.)
Total Cost of Goods Sold per Unit:
Other Variable Costs per Unit: Shipping and Handling
Total Other Variable Costs per Unit:
Total Variable Costs per Unit:
Gross Profit per Unit:
$4.50
$1.30
$0.01
$0.01
$0.02
$0.86
$0.40
$1.30
$1.00
$1.00
$2.30
$2.20
Constant variable costs include GOOP adhesive, metal sheets, OliKrom pigments, and GOOP packets.
The only fixed costs are the paint brushes used to apply the superglue and paint mixture. The temperature
specific color-changing sticker dimensions are one square inch with a thin sheet metal as the medium.
The cost per unit of sheet metal is less than $0.01. The labor per unit cost is $0.40 assuming assembly
time would average around 3 minutes. Workers are paid current Ohio minimum wage, $8.10. The
pigment mixture per unit is approximately $0.86. OliKrom would not disclose their product cost because
they only cater to industrial and research companies. Therefore, our assumed price is that of preexisting thermochromic paint found on Amazon. GOOP superglue will be used to mix the thermochromic
pigments and seal the sticker, making it waterproof and dishwasher safe. The added cost of GOOP super
glue was less than $0.01 per unit. The total unit cost for one safety square is $2.30, and the selling price of
the Safety Square will be $4.50.
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Part 6. Science and Technology Proof of Concept
Review and assessment of the scientific literature:
There is no physical representation of temperature and often times the only way to determine temperature
is through touch. Heat is, “the flow of energy from a warm object to a cooler object” (“Heat Energy”).
Humans feel heat because of the difference in temperature between the two objects.
OliKrom would not release specific information about their thermochromic pigments. Therefore, our team
does not know if the science behind the color changing pigments is with thermochromic liquid crystals or
leucodyes. Assuming OliKrom uses liquid crystals because of their temperature specific properties. The
molecules of liquid crystals constantly rearrange themselves depending on temperature. Different colors
are produced as light passes through the crystal with different molecule arrangements.
Superglue is also an important material within the product design. The temperature specific colorchanging sticker needs to adhere to any object. Superglue forms strong bonds with acrylic resin, a type of
plastic. This plastic exists in liquid form, but when reacted with water, it forms a sticky substance, known
as superglue.
Figure 6 (Design and materials necessary for production)
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Figure 7 (Depiction of color change)
Figure 7 illustrates the specific temperature change at 113 degrees Fahrenheit. This depiction shows the
stickers base color, T1, and change in color, T2. After the object returns to a safe handling temperature,
the sticker returns to its’ base color, T1. This illustrates the memory effect. OliKrom is the only known
thermochromic pigment technology with memory effect and specific color changing characteristics.
Part 7. Acknowledgements
We would like to thank all those who aided us during the process of creating the concept idea, especially
Doctor Deanne Nowak and Alenka Winslett. Alenka Winslett is an accountant, auditor, and chief
operating officer at a non-profit organization that advised us with cost calculations and yearly financial
reports. In addition, Doctor Deanne Nowak, a specialist in teaching business, entrepreneurship, and a
small business owner herself mentored us throughout the process of writing our business plan. Finally, we
would especially like to thank Believe in Ohio for hosting this competition to encourage creative thinking.
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Part 8. References Cited
Weir, Kirsten. "Owww! The Science of Pain." Student Science. Science News for Students, 25 June 2014.
Web. 29 Feb. 2016. <https://student.societyforscience.org/article/owww-science-pain>.
Woodford, Chris. "Thermochromic Color-changing Materials." How Do Thermochromic Materials
Work? Explain That Stuff!, 17 Sept. 2014. Web. 29 Feb. 2016.
<http://www.explainthatstuff.com/thermochromic-materials.html>.
"Olikrom." OliKrom. N.p., 2012. Web. 29 Feb. 2016. <http://olikrom.com/>.
"Heat Energy." Science Learning Hub RSS. The University of Waikato, 20 Nov. 2009. Web. 01 Mar.
2016. <http://sciencelearn.org.nz/Contexts/Fire/Science-Ideas-and-Concepts/Heat-energy>.
"How Do Mood Pencils and Pens Actually Work?" Quality Logo Products. Quality Logo Products, Inc.,
n.d. Web. 3 May 2016. <https://www.qualitylogoproducts.com/lib/howdo-mood-pencils-work.htm>.
Stoye, Emma. "Cyanoacrylate." RSC RSS. Chemistry World, 12 June 2013. Web. 03 Mar. 2016.
<http://www.rsc.org/chemistryworld/2013/06/cyanoacrylate-superglue-adhesive-glue-podcast>.
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