Seed Eco-Home Ratios
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- Minimum value created from individual effort, accounted per individuals working as a team, or individuals in solitary work - 50% worker revenue, 50% OSE revenue
- 'Revenue' refers to 'net revenue', which is the most important from an enterprise perspective.
- OSE covers training and all operating costs.
- Projections - 500 hours with AR assist. It may be that AR assist is required to achieve 500 hr.
- Each person can build 4 houses in one year according to this model. Under this secenario, net revenue per house must be $16.4k with $32.80 starting pay for graduates. $66k starting. The Revenue Model Scanarios call for $25k, so AR-assist share generated per builder is $100k. Incentive structure can be set up where an individual captures value under a 50/50 ratio, as soon as they achieve productivity milestones. If it is 4 houses, they get $66k, + 50% of new value created. New value created is half the $34k (excess value above) - so a bonus of $17k, or $83k. It may be interesting to condition this upon risk-share. What if business isn't good? Worker should share both upside and downside - as long as general trend is good pay. The downside is well-mitigated - as model is robust. B
Land Development
- Intent - inject life-work and land use integration into any development. Efficiency and profit position OSE exceptionally well in this role, even to the point of adding Network State integration
- All improvements are shared 50% between the 2 parties involved based on a fair algorithm.
- Ex - Negotiation of project pay for a whole development with a Collaborator - basic 50/50 means: We create a baseline upon what the next competitor would cost. That is our starting pay potential. We divide the benefit of cost reduction 50/50. For example: OSE can do it for $100k. Another guy can do it for $200k (developer still charges their usual profit). Working with OSE 50/50 upside agreement - we charge less than the $200k developer (so that we can get the business). Our starting premise is a lower cost home with ecological features (and potential reinvestment into agrihood enterprise, local waste water, etc), and 36x speed improvement per house. Irresistible offer. End point looks like $150k for OSE. This looks like a suboptimal deal principles-wise. OSE is making $50k, and Collaborator made an extra $50k. But the Collaborator is making a profit upon this - say a standard 25% or $50k. OSE should get half that profit in a true 50/50 scenario - for a total of $75k for the developer, $75k for OSE. This sounds fair in principle: we shared 50% of our upside, which is our lower build cost. They shared 50% of their upside. They made 50% more, we made 50% more. Regarding costs - such as if they got the land and did grading - this would have to be shared.
- Ideal future scenario - OSE does the site work etc.
- Above is mostly 50/50, but does not address land cost or grading.
- Is there a better way? How about if hard cost of land and earthworks is passed onto the customer?