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Discussion / Re: Production for profit
« on: June 14, 2010, 01:11:01 am »If you have a highly customizable, easily retooled facility that you can configure to produce whatever, there is a downside: It's absolutely going to only be able to produce small unit volume, which is going to drive the manufacturing cost per unit through the roof, because the facility itself and the workers there represent significant fixed costs.OK, fine. Very high costs.
The Phalanx manufacturing facilities are precisely of this type.
Still, since we are the only supplier of these things, we can set the price. Might not get a buyer, but there's no reason to set the price low.
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If we are unable to sell at a higher price, because someone else is making stuff and selling at that price, why can't we buy from them?
If we can't buy at that price, no one else can buy at that price. So, raise the price we sell at.