SEH Revenue Model Development

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Revision as of 17:00, 15 September 2022 by Marcin (talk | contribs) (→‎Narrative)
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$33k apprentice carpenter, MO. [1]. Carpenter apprentice salaries in Missouri can vary between $17,500 to $60,500. Standard carpenter apprentice is paid up to $30/hr. That is tops. Paying $30/hr would be acceptable for OSE with high likelihood that we would be the preferred workplace in construction. Standard carpentry apprenticeships are 3-5 years. We offer 6 month training, with earning as soon as you qualify for all the tasks. We start in the middle, you rise immediately to the top as soon as you test out.

Narrative

We have a different type of operation, as we are a digital, Truly Replicable Enterprise. Thus, we compress the training period 3-10x, we 10x the top percentile. Ie, we _start at_ the top pay.

Digital design allows for efficiency.

A typical homebuilder hires out all the trades, and their efficiency is likely 2-4x lower in the build. Thus, the labor cost in the OSE model is likely 2-4x lower. By design, we have a simpler house, which is say 2x efficiency. Integrated design may be 2x efficiency. 4x efficiencies should be achievable on the build.

But everyone works with the same materials. Producing materials is a game changer - likely 2x in cost. Block, concrete, lumber, 3D prints from trash, and steel.

Once our 1000 sf model is stabilized - we expect to achieve a price point that will be a clear winner in most cases, for DMS.

What is a realistic cost of build? $30/hr is high end of carpenter apprentice pay.