D3D Workshop Marketing
We have so far produced 2 versions of products based on the Universal Axis - the 3D printer and the CNC Circuit Mill:
These are implementations of the same Universal Axis system but with different toolheads, and other toolheads will be added to this ecosystem. These are ready for production in OSE's Extreme Manufacturing Workshops. They are 2 tools of the 50-tool Global Village Construction Set (GVCS). Other release candidates for Extreme Manufacturing Workshops include the Microtractor, CEB Press, Seed Eco-Home, Aquaponic Greenhouse, and CNC Torch Table.
The 3D Printer + CNC Circuit Mill are chosen as the first 2 products because they are small tools with large markets, and are the easiest of all the GVCS machines to replicate. As such, they are the initial products, to which we will add other GVCS machines as they are developed.
The goal for the 2018 1 Month Immersion Training is to hire 6 full time developers/OSE Fellows who spend about 1/4 of their time running workshops. The workshops provide revenue such that 75% of the Fellows' time can be committed to further product R&D. The global 3D Printer Market Size in 2016 was $6B. OSE's product line involves the Global Village Construction Set - key infrastructure building technologies of at least $1B market size each. Our claim is that by combining immersion production education for entrepreneurs with production in the Extreme Manufacturing model, we can capture a significant market share. The inention of OSE is to scale its effort to $940B by 2041, or 1.4% of the global economy (the Tipping Point for the open source economy).
The general financial model for the 3D printer (or CNC Circuit Mill) build workshop is to charge $300 over the workshop cost per participant (primarily cost of materials). As such, we have shown that we can generate $3600 revenue for a 1 day build. This revenue must be sufficient to pay for the OSE Fellow's full time effort.
We are currently streamlining the build process so that it takes 5 hours of build time for one person to build a 3D printer. We are also streamlining the organizational process so that it takes 1 person day to source and prepare materials, and one person day to organize/post an event.
The OSE Fellow sources the materials and runs the workshop. OSE support staff provide organizational/marketing support.
Costs Per Event
Per-event organizational time for local events is:
- Revenue: $3600, 1 day
- Cost: OSE support staff - 1 day. That is $200 at $25/hr.
- Cost: OSE Fellow - 2 days of time.
- Cost: $100 gas money for travel, OSE Fellow covers it
If a workshop does not attract 12 participants - multiple events may be organized as needed.
Ideal Revenue Projections per Fellow
Revenue is based on the number of participants that attend workshops. Ideally, each Fellow serves 24 participants per month, for $7200 revenue, but breakeven occurs at 12 participants. Starting payment per month for the OSE Fellow - as an independent contractor working from their location - would be $3000 per month and they would be eligible for a raise every 2 months.
- 12 participants - $3600 - 3000 - $200 support staff = $400 net for OSE.
- 24 participants - $7200 - 3000 - $200 support staff = $4000 net for OSE
Year 1 Projections - 6 Fellows - $2.4k-$24k/month
- If 6 Fellows succeed in training for Year 1 - then OSE receives between $2400-$24k net revenue per month. At this rate, OSE succeeds in $28.8-$288k revenue per year, meeting its revenue goal of $100k/year.
- Marketing - $200 per day of support staff - $4k/month.
- Ideally, the marketing person is one of the OSE Fellows, not an outside support staff person. This person will be more effective when they are more familiar with the worskhops themselves.
- This goes against the specialization trend in society - but OSE's hallmark is training generalists - who can then lead open source marketing education. We open-source every element of operations as part of our platform of radical transparency.
Year 2 Projections - 12 Fellows
- Marketing channels are perfected.
- Another 6 Fellows succeed in training.
- Marketing Fellow can handle 12-24 events - which at 12 events would be a full time job.
- OSE focuses on automation of systems - so we automate and any tasks that can't be automated are outsourced.
- At 12 events/month we work on creating an automated system for this - and spinning this automation off as an open source enterprise that generates revenue from training courses. This could be in the form of enterprise training to new 3d printing entrepreneurs, as part of an enterprise track. The question here is
Kits: The Open Source Everything Store
- OSE can offer both workshops as above, or kits as follows.
- OSE Fellows are motivated to develop products, and their effort is zero once products are developed, because physical products are turned into Information Products. This is because official products are
- Kits are information products if structured as Instructional Books + automated fulfillment including OSE Print Cluster.
- Instructional Books are high quality learning materials - relevant for individual study and schools. These can become high quality when we develop these strategically and effectively as a team.
- OSE sets standards for quality for its products, such that quality control is assured
- Official book version follows best practice standards
- 3D printed parts follow D3D 3D Printer Quality Control and Certification Procedures
- Outsourced/drop shipped parts lists are curated by OSE Fellows, and meet certain standards.
- Reviews exist like on Amazon, so that quality feedback is received and addressed as a positive dialogue.
- Products are certified as official products for their Distributive Enterprise qualities. These are Open Source Everything Store certified.
- Producers are certified as OSE Certified - a label for products that meet OSE criteria of transparency and distributive economic significance.
- It is desirable for OSE collaborators produce parts but only if they are certified. Certification occurs for every product to carry the OSE Certified label. Verification procedure must be simple: such as submitting a sample.
- Eventually - OSE develops a Showroom for displaying all its products as a curated storefront. It is an automated store where people purchase the goods based on a QR code and OSE shopping app. Computer vision recognizes products if their label is not visible.
- Kits are produced using the OSE Fellow's 3D print cluster, and would consist of the 3D printed parts + build instructions. We also plan on drop-shipping parts that would constitute completed kits. The kit cost should be something like $150 over the costs. Here the fulfillment needs to be organized. There are services such as Kit.com for one-click ordering of parts lists.
- Kits are intended to be scalable via outsourcing. We do not keep inventory so we can focus on education, not fulfillment. As such, we provide an ordering service, without keeping inventory.
- Kits can also serve as a means for ordering parts for workshops.
- There can be a kit option that focuses on easy sourcing - while workshops may work with a different version that is less expensive to source if purchased in bulk or if more work is required (while keeping build time to 5 hrs)
- We all collaborate on best practices for producing kits, such that the kits are a scalable enterprise that builds upon a wide range of products. The product line is a product ecology that is designed to be manufactured with the least effort using a minimum amount of unique parts.
- OSE Fellows are selected for their respective geographical area, and operate in that area, such as a state or region of several states
Marketing must allow for 6 workshops to be held in different geographic regions, and should be scalable up to about 50 workshops per month in the USA before moving to other countries. Market segments include:
- Public events - marketed with various collaborators. Schedule
- Elementary schools - private events at schools, during the school day (5 hours).
- Publi libraries - public events at public libraries. Possible model - free workshop to the public - anyone who wants to take a 3D printer home pays the kit price.