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Economies of scale and per unit pricing. Are we being ripped off?
Economies of scale and per unit pricing. Are we being ripped off? Hi guys, We're in the process of launching a handbag business. We were relying on economies of scale to grow. Our supplier just informed us that there will only be a 7.5% difference in per unit cost between ordering 500 and ordering 10,000. Equivalent to 10 dollars per unit for 500, and 9.25 dollars per unit for 10,000. Does this seem reasonab...
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