Archived posting to the Leica Users Group, 2011/06/14
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Frank Filippone wrote: >Doug... if you increase production by hiring more workers, and get more >large volume discounts, you make money for your more profitable lines as >well... Unit cost drops as you divide the overhead by more units, people >and volumes. > >Increasing production for the highest cost line is not necessarily the best >way to increase profits, even if temporarily, you are production limited. I'm aware of economies of scale. Economics for Engineers 101. Rangefinders are a niche market. You need scale to get economies of scale, you're not going to see enough scale to realize the economies. Not a lot of price elasticity, and no competition to canibalize sales from. Doug Herr Birdman of Sacramento http://www.wildlightphoto.com