• Ummdustry@sh.itjust.works
    41·
    10 months ago

    I mean you might be, depending upon what % of the total market you operate and what the exact inputs of the new method are.

    • pearsaltchocolatebar@discuss.online
      1·
      10 months ago

      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.

      • Ummdustry@sh.itjust.works
        2·
        10 months ago

        But some operational costs (I.e. Ground Rent, Marketing, Legal Fees, IP Costs etc…) do not scale with increased output.

          • Ummdustry@sh.itjust.works
            1·
            10 months ago

            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. )

      • trolololol@lemmy.world
        1·
        10 months ago

        Not if most of you cost is labor, you’ll be approaching marginal increase in costs but still certainly of double income.

        • pearsaltchocolatebar@discuss.online
          1·
          10 months ago

          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.