How did we accomplish this?
The answer is “Need Alignment”
Every Manufacturing Extension Partner (MEP) from each state verified that the #1 issue their clients (Manufacturers) face is a shortage of skilled labor. The MEPs receive funding according to the impact they have on manufacturers in terms of jobs created, client savings, client revenue growth, and client success surveys. When we presented our services, cost structure, and how we both can win from partnering together, the conversation immediately went to the onboarding process and how we start working together as soon as possible.
The structure of the agreement for most states will have the MEP holding the contract with the client and the MEP contracting us. The MEP will mark up our price to an agreed upon amount as their commission for leveraging their existing relationships. This incentives the MEP to sell as many video work instructions as possible therefore committing their entire sales team as stated by several of the MEP Directors themselves.
What does this mean for the bottom line?
The Florida Makes, the Florida MEP, has relationships or access to 18,000 Florida Manufacturers. There are 295,000 Manufacturers in the US. From our discussions with the 31 MEPs, they at a minimum represent 150,000 manufacturers. To be conservative, let’s assume that they are all small manufacturers ($50,000 average sale) and a 25% conversion rate (We anticipate a conversion rate of 40% as this the manufacturers #1 issue and our first mover advantage)
Conservative Projection on Bottom Line Increase
$50,000 x 37,500 manufacturers = $375,000,000
Potential Projection Bottom Line Increase
$128,000 (amount for average company) x 150,000 manufacturers = $19,200,000,000
We have the processes and plan in place to scale operations to meet the demand. Your investment with us will make this happen and fully utilize our first mover advantage!
For the remaining states, we were not able to engage during the conference due to time and accessibility constraints or they were not in attendance at the conference. However, we were able to meet several other MEP contractors who have relationships with those MEPs who we were not able to meet directly or were not in attendance.