3D Printer Revenue Model

OSE builds 3D printers and tractors in one day, and 1400 square foot houses in 5 days - via its Extreme Manufacturing build events:

The revenue model involves charging people for a build experience, and people can take the product home with them.

For example, 12 people can sign up for a 3D printer workshop. Materials for the 3D printer cost $500. We charge $800 for the build experience - where people take their 3D printer home with them. Example of a workshop: [1]

Case Scenario

• Workshop with 12 builds of the 3D printer
• People register at $300 above the Bill of Materials cost of the 3D printer ($500)
• OSE generates $3600 of revenue in a single workshop (12*$300)

2 Revenue Streams

• The 3D printer can be build in the Extreme Manufacturing (XM) workshop scenario above - or we can sell kits
• OSE supports buyers with remote build guidance as needed.
• People who buy a kit prepare the main components (frame, 5 axes, heat bed, controller, and extruder
• We then support the people for about 2 hours that are needed to assemble the entire machine to first printing
• Both the Kits and the Extreme Manufacturing build cost the same.
• Advantage of kit is that people don't have to travel to a workshop

Operational

• OSE will test targeted FB ads to market the 3D printer
• We have an interest form to capture interest in our workshops - [2]
• Fulfillment happens in house, with 1-4 hours of preperation per kit, depending on who is doing it
• Distributed operation - OSE staff works as a distributed team

Growth Strategy

• OSE started its OSE Immersion Program in 2018, and now hired 2 full time staff as OSE Fellows.
• OSE intends to hire 2 more people every 6 months
• Production goal for OSE Fellows is 20 3D printers per month (kits + XM workshops)
• With each printer biuld valued at $300, revenue is $6k per OSE Fellow
• OSE Fellows receive a monthly stipend of $3k
• By end of 2019, OSE is expected to reach a stable revenue of $21k/month
• To support growth, we are adding other products (see all our workshops at [3]), developing OSE Clubs, training club mentors via professional development opportunities, and running quarterly Extreme Manufacturing Coopetitions with the OSE Clubs. We are also planning to leverage HeroX as an incentive challenge platform that works in tandem with the development work of OSE Clubs.