[frgeek-michiana] Virtual Scavengers visit

  • From: Tom Brown <tbrown@xxxxxxxxxxxx>
  • To: FreeGeek Michiana <frgeek-michiana@xxxxxxxxxxxxx>
  • Date: Tue, 24 Jun 2003 09:01:39 -0500

VIRTUAL SCAVENGERS VISIT

The visit to VS confirms that the Free Geek Michiana business plan is
viable. FGM can replicate and  improve upon the VS recycling model. And we
can work with VS and other nonprofits to improve everyone's operations and
viability.

The stand-out piece of information was how VS used pallets, 2x4 lumber and
bolts to create three-tier shelving. Excellent idea! Particularly since
Mike C. has access to about 100 used pallets.

:: Recycling ops

FGM is several years behind VS in recycling but can catch up quickly if we
obtain donated warehouse space in South Bend. Due to cyclic commodity
markets VS holds their recyclables for long periods of time before
disposing of the scrap. Their current production facility utilizes 9000 sq.
ft., and VS is adding an additional 9000 sq. ft. for cold storage. VS plans
to convert space for class rooms and a computer lab in the fully heated and
cooled production facility. It took VS five years to find the initial 9000
sq. ft. donated space and another year to find the second 9000 sq. ft.

Mike and Goose estimate a 4000 sq. ft. minimum for FGM operations. FGM can
do with less space in South Bend if we find a way to get pallets of
demanufactured components in and out of the barn in Bremen. FGM can easily
implement the most elegant storage and workflow solutions that VS has
developed. Mike and Goose already have concrete ideas to improve VS's
demanufacturing and refurbing workflow and efficiency. 

Electronics recycling is barely profitable at best. Materials volume and
cold storage are the keys to adequate gross profit. VS is promoting a
federated cooperative of statewide nonprofit electronics recyclers who pool
material to obtain the best market price for commodities through combined
volume. VS would serve as the primary cold storage for demanufactured parts
or do the demanufacturing for the regional partners and bargain with the
vendors. If VS can obtain a truck, they will begin a statewide pickup route
on a routine basis. VS is also investigating obtaining centralized
chopping, grinding and smelting equipment -- although this is a long shot.
:: FGM Advantages

VS comes to recycling from religion. Their inspirations are the St. Vincent
de Paul Society and the Catholic Worker movement. Big hearts abound. VS
describes itself as Faith-Filled, rather than Faith-Based. 

In comparison FGM's principal strength is technical knowledge, which is not
to diminish religious or philosophic motives. FGM is years ahead of VS in
computer skills, and we have barely begun to apply and expand our skill
sets. FGM's most useful role statewide may be consulting and application
development. In addition our business model is innovative and appears to be
sound. Our business model, or its most successful components, may be an
important statewide contribution.

The FGM A+/LPI training plan appears to be on the money. VS intends to
provide A+ training to attract clients and generate revenue. They also plan
to do MS application training in a yet to be built classroom. VS is certain
Workforce Develpment, the Veterans Administration and other social welfare
agencies will refer paying clients to VS. 


VS has not found a good way to distribute their refurbed computers in
Indianapolis. According to VS the number of donated computers which are
candidates for remanufacture or refurb are small in comparison to the junk.
Individuals tend to donate better systems than corporations. VS sends a
truckload of refurbs every month to Appalachia and have sent 1000 computer
systems to Central and South America. VS gives systems to volunteers who
have completed 20 hours of service, and VS sells boxes at retail. But the
retail store just breaks even because of the depressed market in the inner
city and the store overhead. VS is closing their inner city retail store
and returning to warehouse sales. They are considering opening a store in
the suburbs where demand and disposable income are higher but may not
follow through. The FreeBox model, although not consistently successful, is
more successful than VS's distribution model.

VS could possibly distribute more refubs to local nonprofits if they
possessed Linux expertise. Npower and other MS product dependent vendors
are convincing nonprofits to buy new and buy Microsoft. This frustrates and
angers VS staff. If VS had LTSP skills, they would have a viable
alternative to offer nonprofits: GNU/Linux client/server networks using
remanufactued thin clients. Local tech associations have not, to date, been
helpful to VS. VS has apparently contacted professional associations rather
than Linux Users Groups.
:: Fund raising

VS doesn't do direct fund raising, and they don't have a fund raising
program. They receive no support from city, county or state governments.
They have not been successful at receiving foundation grants.

:: Volunteer recruiting

VS turns away volunteers as a rule and only recruits volunteers when they
need help. They contact social service agencies and temp agencies for
referrals. Volunteers work 20 hours for a computer (actually components to
build a computer). All volunteers work at demanufacturing initially. VS
doesn't need as many volunteers as you would think - there were a dozen
people or less working on the day of our visit.

:: VS software needs
   . legal licenses
   . training lab for clients and volunteers
   . LAN in both facilities
   . inventory system, barcode system, both as possible web applications
   . training for key staff
      > Linux
        - system admin
        - network admin
        - basically LPI training
      > LTSP/K12LTSP installation and maintence
      > applications
   . find Indy LUGs for support
   . provide alternative to Npower and other Wintel based solutions


:: Goose's notes

. VA Ch. 31 vets
. Take good candidate, add working parts = good system
. Hang onto dead stuff until demanufactured !!! :(
. Training 
        Step 1 - stripping area
                easy to learn
                empowering
                reduces fear of computers
. Distribution
        work 20 hours of volunteer time
        assemble own system
        training for own system
. Better systems from individuals
. Computer drop-off day
        churches
        announcements
        Townships?
. Shutdown to get ducks in order after move, 1-2 months
. Retail trade, fairly decent
        $100-150, P1

        $200-$300, P2
        $380+, P3
        solid base components, service
        no money in poor neighborhoods, no inner city computer stores in Indy
        money (retail) in affluent communities
. Big Hispanic market, need Spanish speaking volunteer or staff
. Distribution
        nfp orgs
        3rd world
        sends lots of systems out of area, Appalachia
. Sales
        newspaper ad
        social networking
        personal sales
                match VS price
                40% commission
. Volunteers
        social service agencies
        Manpower and temp agencies
. Theft is non-issue
. Recipients sign agreement to donate computer or return to VS when
finished with it.
. Person we should contact - Melinda Antell
. Faith-filled or Faith-based
. Bench area
        fold up tables
        monitor on monitor stands
        boxes to separate parts
        specific person does specific task (stations)
. Intake test bench
        good - repair, refurb, upgrade, ship out
        bad - goes straight to scrap line
. Pallet/2x4 rack storage system
        use bolts to assemble
        replace bad pallets




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