All of us who are volunteering for peer production activities, and do not get a direct income from it, are forced to contemplate another activity, especially if our ‘commons’ does not generate an actionable ecology of associated businesses generating employment or an income.

So how do we do it? I’m assuming that those of us faced with that decision, if we become active, try to find an activity compatible with our values. I think that indeed tens of thousands of peer producers are engaged in the creation of all kinds of new businesses which to some degree try to be faithfull to the partnership idea.

Here’s one attempt, by Chris Watkins of Appropedia, who is in the process of launching Daya Products and is trying to build a network of similar businesses as well.

(Chris adds that: “Daya is taken from the Indonesian word daya, meaning “power,” as in “empower,” and the Hindi word dayaa, meaning compassion. The business is based on the idea that providing access to markets is a good and ethical thing. This is ethical business – not quite the same as “Fair Trade,” but always learning from this and other practices.”)

Chris has jotted down a set of business principles he’d want to adhere to, and would welcome any comments:

Chris Watkins:

” * Pricing:

* Go to the place of manufacture and get a good bargain. The producer will get a better deal from me than from a (wealthy) middleman, and I’ll be likely to come back in future.
* Avoid buying from wholesalers. That’s another large margin and it makes you much less profitable and less competitive. They are probably paying much less to the producer than you would. You also miss out on a fun trip to the village.
* If I pay too much, either I need to be good at marketing, or work very hard at selling (which I don’t enjoy) or just not do business. I pass up a product rather than pay too much.

* Buy beautiful things. Then you don’t have to sell – people will beg to buy the products.
* Buy sustainable and healthy products as much as possible.
* Trust is important – but good intentions are not enough. People make mistakes and forget things.
* Keep records.
* Payment up front is important, unless you know it’s an efficient operation. (You may need to stretch this to make a sale, but ask yourself – are you willing to chase a customer for payment? Are you organized enough to remember to keep contacting them until they pay?)
* Don’t leave more on consignment than you can afford to lose.
* Who pays for losses on consignment? In practice it may be you, the supplier, so make sure you profit is so high.
* Your margin must cover all your costs, and leave enough profit to make it worth your while.
* Your selling price must be low enough that a retailer sees it as a good deal. You want repeat customers. Remember that retailers have very high overheads, and their landlord very likely makes more than they do. Common wisdom is that they need to put at least 100% on the price you charge. Usually it’s higher – allow for 150% and you’ll do better.
* No premises, other than perhaps a garage, or the premises of the customer. This drastically reduces overheads, prices, and stress. If something is bulky enough that it needs storage, the customer must pre-order – usually though, it’s best to just do something else.
* No great variety in prices between similar items. All the one price, or at most 2 or 3 categories of a product range, which can be easily distinguished. Having 6 different price codes for scarves, for example, will lead to a lot of headaches. If there are 2 codes for scarves that each have a very different texture – so you don’t have to unfold to see the difference – that is okay. If they are all the same price, that is by far the easiest.
* When the import duty is high, I reconsider. Adding 25% (as with clothes imported to Australia) makes it much harder to be sure of a profit. Look for exceptions – e.g. scarves, shawls and any used clothes are 0%, whereas shirts and sarongs both fit in the main clothing category, at 25%.
* Don’t rely on a customs agent to do your customs entry – they don’t have the same incentive to get it right. Find the right codes for your items, make sure you’re not paying too much, record the codes for future times. This takes work – allow time, and don’t wait till the goods have arrived.
* Surface freight where possible. In many cases, the post office offers an “EMS” ocean freight option, and this is the cheapest reliable option.
* I do not employ local people as agents (with some possible exceptions, e.g. where I already know the prices, and someone is offering better). There is generally a conflict of interests, as they take you to places where they will get a commission, rather than the places with the best prices, and their wages or tips (and the commission they might not tell you about) add to the price.

There’s more… I’m choosing not to make certain information public, but will share it with trusted partners that I’m working with actively. ”