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So... meta thread on unit economics. In LA, pre-Covid average rates were like $3/sf so a 1000 sf space would be 3k. I’d guess many of these ideas would only start to get interesting if it drops below $2/sf. What the picture in your city? hughesmarino.com/los-angeles/bl
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If you had 1000 sq feet of cheap, well-located industrial workspace in a fairly dense urban area, what equipment would you put in and what would you do? Assume you can’t be in the food/dark-kitchen business and that supplies you need from China/Amazon continue to flow smoothly.
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Let’s assume $2000. Put in 3-4 slightly nicer 3d printers ($3000), a laser cutter ($3000), 2 electronics workbenches (decently kitted out at say 3k each... oscilloscope, bench supply, soldering iron...). A couple of supply storage cabinets, a good optical table... we’re at 50k.
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If you had say 40 members paying $100/mo (~ mid-range gym), you have 4k revenue. Variable costs: rent, utilities, insurance, cheaper supplies for free (solder, coffee). Assume 5% repair/maintenance/year so that’s another $200. Let’s say $1000. So $1k gross margin.
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You’d make your capex outlay back in 48 months, not counting amortization tax benefit. So that’s $1000 free cash flow. Maintaining 40 people membership at $100 would be quite hard though. But you could add 3 value-added services... coaching, simple outsourcing, and remote fab.
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Think of these as members who offer other members and external people help. Basically like gym trainers who turn a profit on their membership fees without being underwritten by the space manager. So I think small-scale makerspaces are a feasible use of converted retail below $2k
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Unlike first-gen maker spaces that were larger destination communities and max a handful in a city, this could be scaled down to one in every neighborhood. Starbucks or 24x7 fitness level proliferation.
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Hmm... this is a huge, well-equipped space at $150/mo membership. I wonder if this market naturally wants to aggregate or decentralize.
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Replying to @vgr
losangeles.craigslist.org/lgb/tls/d/cost Comprehensive rapid proto to light industrial capabilities.
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Replying to
I suspect median Main Street Covid-failed retail business would be that size. I suspect it would be feasible if a lot more people get into entry-level making/diy.
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