FenrirIII to Work [email protected] • 2 years agoRational Self Interestlemmy.worldimagemessage-square21arrow-up1376cross-posted to: [email protected]
arrow-up1363imageRational Self Interestlemmy.worldFenrirIII to Work [email protected] • 2 years agomessage-square21cross-posted to: [email protected]
minus-square@[email protected]linkfedilink1•2 years agoNo, you never will without increasing prices to cover the additional overhead of increased production. Remember, only the machine is doubling efficiency, but operations has to increase to handle the new output and resources required.
minus-square@[email protected]linkfedilink2•2 years agoBut some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.
minus-square@[email protected]linkfedilink1•2 years agoAgain this is a case of “it depends”. If you are not a market driver then yes it does. (‘mom & pop motor vehicles’ isn’t going to make a dent in the global car market. )
minus-square@[email protected]linkfedilink1•2 years agoNot if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.
minus-square@[email protected]linkfedilink1•2 years agoThe labor costs aren’t going away, just shifting. You have to increase employment in other areas to handle a 100% increase in product output. Besides the fact that labor costs are rarely a large enough portion of a manufacturer’s budget to make that big of a difference.
No, you never will without increasing prices to cover the additional overhead of increased production.
Remember, only the machine is doubling efficiency, but operations has to increase to handle the new output and resources required.
But some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.
Nor does demand for your product.
Again this is a case of “it depends”. If you are not a market driver then yes it does. (‘mom & pop motor vehicles’ isn’t going to make a dent in the global car market. )
Not if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.
The labor costs aren’t going away, just shifting. You have to increase employment in other areas to handle a 100% increase in product output.
Besides the fact that labor costs are rarely a large enough portion of a manufacturer’s budget to make that big of a difference.