Quote:
Originally Posted by Kato
What economics did you fail? 
Its about achieving the right sales volume, market exclusivity and profit margin.
If you sell 1 unit at $500 profit, it's a lot better to sell 10 units at $100 profit. Esp given you have invested in the tooling to manufacture the 1 item. |
As far as selling 5units for the same price when your chosen market is prepared to buy in at the increased price are you crazy?
Your per unit cost is going to increase if you go along that route 'repairs and maintenance, increased cost in staffing to cope with production increases, capital asset replacement, possibly spoilage as well as you could safely say that product quality would decrease, increased warehousing costs as you may need to upgrade your facilities the list goes on.
Flooding the market also decreases the exclusivity of your product which is a key variable in the luxury car market.
The tooling is already there, you've paid for it, why increase capital expenditure, why exhaust it?