FenrirIII to Work [email protected] • 1 year agoRational Self Interestlemmy.worldimagemessage-square21fedilinkarrow-up1367cross-posted to: [email protected]
arrow-up1367imageRational Self Interestlemmy.worldFenrirIII to Work [email protected] • 1 year agomessage-square21fedilinkcross-posted to: [email protected]
minus-square@[email protected]linkfedilink4•1 year agoI mean you might be, depending upon what % of the total market you operate and what the exact inputs of the new method are.
minus-square@[email protected]linkfedilink1•1 year 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]linkfedilink1•1 year 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•1 year 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.
minus-square@[email protected]linkfedilink2•1 year 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•1 year 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. )
I mean you might be, depending upon what % of the total market you operate and what the exact inputs of the new method are.
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.
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.
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. )