Economies of scale and per unit pricing. Are we being ripped off?
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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…