Eleven years ago, the Airbus A380 entered commercial service with Singapore Airlines. In the time since then it has become the queen of the skies. It’s a double-decker airliner, capable of flying 550 passengers eight thousand nautical miles. Some configurations of the A380 included private suites. Some had a shower. This is the epitome of luxury, a dream of flying with long-stemmed glasses, a movie, and a pleasant dream in mid-air.
Now, after the cancellation of A380 orders by Emirates, Airbus has announced it will end production of this massive, massive plane. No, it’s not the last flight of the Concorde, but it is the beginning of the end of an era. The biggest and most impressive planes just aren’t economical; it’s possible to fly three 787s across the globe for a single flight of an A380. The skies won’t fall silent, but soon the A380 will be no more.
Continue reading “Airbus To Halt Production Of The A380; Goodbye to an Engineering Triumph”
Here at Hackaday we are willing to bet that in a universe free of all monetary constraints, many of our readers would leave their day jobs in order to pursue their hardware hobbies full time. Obviously this is only practical for a lucky minority of people (for a wide variety of reasons) but we’re willing to bet that a significant stumbling block is figuring how to do it in the first place. You quit your job, but then what? If more information about starting and sustaining small hardware business’ was available more people would take the plunge to start one. There are software companies with salary transparency but this is only part of the picture and we can’t think of many hardware companies that offer the same. What we really want is to get an image of the entire business end to end; from suppliers to COGS to salary. And we want to see it for hardware.
Years ago the first and second Hackaday Prizes captured an entrant named FarmBot whose goal was to build open source robotic farming equipment to make it easier for anyone to grow their own food. A few successful Kickstarters and years later they’ve been shipped multiple versions of the Genesis and Genesis XL robotic farming system and have a sustainable business! And now they’ve decided to open source their business operations too. Suffice to say, this provides quite an uncommon view into the guts of what makes a small open source hardware business tick. Let’s take a closer look!
There is a wealth of information exposed in the company documentation; it’s as though they took their internal wiki and made it public, which we suppose is exactly what happened. The most interesting part for our readers might be the statistics page that tracks costs and quantities for their products. This is where the magic lives. You can use to it see that so far they’ve sold 124 Genesis XL machines at an average selling price of $3,834.34 for $475,458.30 of revenue (it cost $187,200 to build their run of 200 machines). You can also see that each machine has 1,415 parts and takes about 25 hours to assemble. This page is where the true guts of the business live.
Everything else is here too. Here’s where you can learn about what vendors FarmBot uses use logistics, or power, or web infrastructure monitoring. And this is the page with the infamous salary calculation formulas if you want to guess what you’d make as an employee. Then there’s a bunch of boring but important stuff. Fulfillment processes live here, and the consumables they use to support that fulfillment are listed here (with costs!).
One reason we enjoy open source so much is that it affords a wonderful opportunity for people to learn instead of keeping the important parts of a product or process perpetually under wraps. We’re hoping that documentation like this becomes more prevalent and foster an explosion of small hardware companies to follow it.
Just to be clear, the primary goal of the Papas Inventeurs (Inventor Dads) was to have the kids make something, have fun, and learn. In that light, they enjoyed a huge success. Four children designed, made, and sold laser-cut napkin rings from a booth at the Ottawa Maker Faire as a fun learning process (English translation, original link in French.) [pepelepoisson] documented the entire thing from beginning to end with plenty of photos. Things started at proof of concept, then design brainstorming, prototyping, manufacture, booth design, and finally sales. While adults were involved, every step was done by the kids themselves.
It all began when the kids were taken to a local fab lab at the École Polytechnique and made some laser-cut napkin holders from plywood for personal use. Later, they decided to design, manufacture, and sell them at the Ottawa Maker Faire. Money for the plywood came from piggy banks, 23 different designs made the cut, and a total of 103 rings were made. A display board and signs made from reclaimed materials rounded out the whole set.
In the end, about 20% of people who visited and showed interest made a purchase, and 60 of the 103 pieces were sold for a profit of $126. Of course, the whole process also involved about 100 hours of combined work between the kids and parents and use of a laser cutter, so it’s not exactly a recipe for easy wealth. But it was an incredibly enriching experience, at least figuratively, for everyone involved.
Possibly the biggest takeaway was the way manufacturing involved much more than just pressing “GO” on a laser cutter. Some pieces needed sanding after laser cutting, and each piece got two coats of varnish. If you missed it, [Bob Baddeley] showed how labor, and not materials, ends up being the most expensive part of a product.
“The prototype was $12 in parts, so I’ll sell it for $15.” That is your recipe for disaster, and why so many Kickstarter projects fail. The Bill of Materials (BOM) is just a subset of the Cost of Goods Sold (COGS), and if you aren’t selling your product for more than your COGS, you will lose money and go out of business.
We’ve all been there; we throw together a project using parts we have laying around, and in our writeup we list the major components and their price. We ignore all the little bits of wire and screws and hot glue and time, and we aren’t shipping it, so there’s no packaging to consider. Someone asks how much it cost, and you throw out a ballpark number. They say “hey, that’s pretty reasonable” and now you’re imagining making it in volume and selling it for slightly higher than your BOM. Stop right there. Here’s how pricing really works, and how to avoid sinking time into an untenable business.
Continue reading “Your BOM is not your COGS”
You’ve no doubt been exposed to the ads for various inventor services; you have an idea, and they want to help you commercialize it and get the money you deserve. Whether it’s helping you file legal paperwork, defending your idea, developing it into a product, or selling it, there’s a company out there that wants to help. So which ones are legit, which ones are scams, and what do you really need to make your millions?
Continue reading “Inventor Services – Maybe Right For You – Maybe”
The future is upon us and the robots will soon take over. Automated cars will put Uber drivers and cabbies alike out of work. Low-wage workers, like the people working behind the counter at McDonalds, will be replaced by burger-flipping robots. The entire operation of Spacely Space Sprockets, Inc. is run by a single man, pressing a single button, for four hours a day. This cartoon future is so fully automated that most people are unemployed, and all productive work is done by robots.
The first jobs to be replaced will be the first jobs teenagers get. These are low skill jobs, and when you think about low skill jobs (certainly not low-effort jobs, by the way), you think of flipping burgers. That’s where Creator comes in. They’re a culinary robotics company with a restaurant in San Francisco. They’ve been profiled by NPR, by Business Insider, and by CNBC. TechCrunch got a sneak preview proclaiming this as the future of the six dollar burger. It is a marvel of engineering prowess with a business model that I don’t think checks out. This is not the robot that will take your job, and I’m proud to say I ate a robot hamburger before the restaurant went out of business.
Continue reading “I Ate a Robot Hamburger Before the Restaurant Went Out of Business”
Today I don’t have a hack for you. I have a story, one that I hope will prove useful to a few of you who are considering a move to Asia to chase opportunities here.
Seven years ago, I was a pretty stereotypical starving hacker. I had five jobs: A full-time dead-end job in biotech, and four part-time or contract gigs that were either electronic hardware design or programming. I worked perhaps 50 hours a week, and was barely past the poverty line – I was starting to wonder why I spent so much time in school. I saw the economic growth in Asia as an attractive but risky opportunity.
Check out that image above…France? No, this is Shenzhen and let’s face it: many exciting things are made there (even the copies). After a short visit to the region, I decided to take that risk but not in Shenzhen. I sold everything I owned and moved from Canada to Vietnam and started a company. Over the last seven years things have worked out well, although I certainly wish I had known more about the process before I got on a plane. This article is about the general path I took to get where I am. Obviously I don’t know the legal framework of every country in Asia, but speaking in generalities I hope that I can cover some interesting points for the curious and adventurous.
Continue reading “Selling Everything, Moving to Asia, and Setting Up a Company”