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VONMERCIER
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== Business model == === Built-on-order = high margin at low volume === [[File:38ebf5dc5e19bf7fdfe5808c0a405eb3b943aae.png]] VonMercier designs, manufactures and assembles vehicles for sale using a built-on-order model. An initial deposit secures a customer's build position, and a 50% progress payment is received at least 3 months prior to delivery, then parts are ordered. Final payment is due before delivery. === $25M revenue & $6M EBITDA === At a volume of 250 Arosa units in year 3 of production, VonMercier projects an EBITDA of '''24% with at least $6,000,000 in earnings.''' === 47% direct margin projection === VonMercier is manufacturing the Arosa at low volume and high margin. At a production scale of 50 units, the direct cost of each Arosa unit will be approximately $53,000. The margin dollars are used to run the business and re-investment in R&D and growth. === Options, accessories, add-ons and service packages === VonMercier expects additional revenues from options and customizations during the order process. Accessories and add-ons will also be made available including an enclosure kit (roof), software and sensor updates. Service packages will be offered beyond the 1yr manufacture’s warranty. VonMercier has begun talks with regional service providers for local options for customers. [[File:5d88afcc9fabb438af33975f7a2f0841896f780d.png]] === Agile manufacturing === Manufacturing and engineering overhead is curtailed by strong relationships with key suppliers, also allowing for easier expansion and rapid new product development. These suppliers can supplement the core engineering team when needed, so development can happen more rapidly. Assembly cells are re-configurable so the manufacturing efficiencies and design updates can be quickly applied to the assembly line. Automation is used for repetitive steps in the manufacturing process such as in the lower hull construction.
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