This is a great example of a line of thought which I think is addressed in concept by this classic.
With manufacturing we have up front costs like the cost to design the product itself and the tools needed to make that product. These upfront costs are eventually going to be neutralized if revenues are greater than expenses. Once that’s established there are the various ongoing expenses such as materials, energy, and labor. From what little I know of manufacturing bicycle or motorcycle parts, 1/3000 of someone’s hour at let’s say $30/hr, a little piece of what I assume to be steel, the energy cost, and more abstract costs like the maintenance the system will also need, the cost to make a single one of these is going to be well below $2.42 which is about a third of minimum possible wage in the US.
All of the above factors into the price of a product far less than the economics of perceived value which the largest companies can have massive influence in defining for the market. When a CEO is being paid about 400 times more than the average worker on the line which isn’t even to speak of what happens to the actual profit of the business, that’s when the disparity being pointed out in the picture becomes relevant. This is especially given that unsold inventory is dumped rather than distributed because they don’t want to undermine the dollar value of their product by reducing it or giving it away for free.
And who’s paying for the materials, and who made the machines that make these, etc etc.
This is a great example of a line of thought which I think is addressed in concept by this classic.
With manufacturing we have up front costs like the cost to design the product itself and the tools needed to make that product. These upfront costs are eventually going to be neutralized if revenues are greater than expenses. Once that’s established there are the various ongoing expenses such as materials, energy, and labor. From what little I know of manufacturing bicycle or motorcycle parts, 1/3000 of someone’s hour at let’s say $30/hr, a little piece of what I assume to be steel, the energy cost, and more abstract costs like the maintenance the system will also need, the cost to make a single one of these is going to be well below $2.42 which is about a third of minimum possible wage in the US.
All of the above factors into the price of a product far less than the economics of perceived value which the largest companies can have massive influence in defining for the market. When a CEO is being paid about 400 times more than the average worker on the line which isn’t even to speak of what happens to the actual profit of the business, that’s when the disparity being pointed out in the picture becomes relevant. This is especially given that unsold inventory is dumped rather than distributed because they don’t want to undermine the dollar value of their product by reducing it or giving it away for free.