A few weeks ago we proposed a small batch manufacturing business to one of the struggling areas in Japan. We passed the first stage of the competition and a few days we went in to present to a panel of judges about the merits of the business plan.
The basic concept of the business plan was based on two concepts. 1) What Voodoo Manufacturing is doing 2) The Japanese concept of giving small gifts. The small manufacturing center would be able to turn out around 5000 small plastic objects in a week. We believe this would be a valuable service to venues in Japan that could then offer these customized and branded gifts to their guests for special events. Think, a wedding hall or a sports stadium as the main clients of this business.
Doing the economic calculus of a project like this, I estimated that, on objects like these, transaction costs, on the margin, are reduced by around 300%. I don’t know if this applies to expensive products but I suspect that if it doesn’t yet, it will at some point in the future.
The other interesting thing I learned is that the sweet spot for this business is somewhere between 500-5000 parts. Oddly, doing a single object is a terrible way to make money. Which tends to indicate that a B2C business based around 3D printing has to have a radically different business model. This may also explain why a lot of B2C 3D printing businesses are performing poorly or at very least under expectations.
This whole project seems to be a baby step on a much larger path towards advanced manufacturing. Advanced manufacturing is going to look radically different than traditional economy of scale manufacturing.