RE:RE:Economy of scale will help N to get profitablerandomtask]Reducing the price of legal cannabis will only hurt margins for Namaste. They are currently at 14-17% gross margin, reducing prices will essentially mean they have no income to apply to their expenses...
whisky11 wrote: Increased number of customers at no extra cost/investment will help Namaste achieve
profit. Last year was just beginning, economics of scale works all the time.
Half of cannabis trade is done by black market. Legal industry got to lower price of marijuana improve quality and availability. Only Cannmart can deliver.
whisky11: That 14%to17% gross margin was because they were clearing unwanted inventory. Would you like to have one thousand customers and make $14 on each or 5000 customers and make $10 on each?
Namaste started process of manufacturing and distribution of packaged goods,similar to pack of cigarettes or box of cookies it does two things first creates branding and differentiation. Branding creates increased sales
I'm sure it is much cheaper to make hundred thousand the same pieces, then make individual merchandise for one customer similar to Leonardo da Vinci or Stradivarius production style. Packaged goods tells consumers that this is the same product they got last time so the buyers know what they're buying . If you're in doubt get yourself movie from Henry Ford's T model line ,something with Charlie Chaplin would help you grasp the concept Economies of scope focuses on the average total cost of production of a variety of goods, whereas economies of scale focuses on the cost advantage that arises when there is a higher level of production of one good.
So,lower price but increased sale is beneficial to business I think that is the first cannon of capitalism .