Hi. I have a question sir, I am working on my first skincare product pricing. And my Confusion is that current fixed cost is not very high as I am not advertising anywhere. Just planning to sell on Amazon for now. But once I priced my product in future when I have more fixed cost , hiring someone for my business, insurance etc, how I would cover that cost ?
That's a great question and something you seriously need to consider. You can either try and sell enough products to generate enough profit which can then be used to cover the increased fixed costs in the future or you could look at other sources of finance, we have a video on sources of finance, just have a watch of that it may give you some inspiration.
Hello sir I have a question I would like to ask you about it. Do small businesses have higher fixed costs than large businesses due to diseconomies of scale like higher interest rates charged by the bank?
Great question, but it's more likely to be the other way around as big businesses will have more employees on salaries and bigger buildings to pay for etc. So their fixed costs are likely to be bigger on average!
Hello, Two plants with different fixed cost, Plant A $5000 fixed cost and Plant B $7000, plant A produces 3000 jackets per day with an average cost of $3 per Jacket and Plant B produces 2500 Jackets per day with an average cost of $3.5 per jacket. If the owners of Plants want to increase the production from 5500 to 6000, in which plant should the owner increase the production? in which plant is more economical?
According to a good friend of mine (Chat GPT) the answer is as follows: Plant A becomes more economical at the higher production level, and the owner should increase production in Plant A to achieve the desired output.
wow this video helped alot thank you
Glad to hear it!
Thanks for sharing your knowledge very helpful
No problem. Glad you found it helpful 👍
Hi. I have a question sir, I am working on my first skincare product pricing. And my
Confusion is that current fixed cost is not very high as I am not advertising anywhere. Just planning to sell on Amazon for now. But once I priced my product in future when I have more fixed cost , hiring someone for my business, insurance etc, how I would cover that cost ?
That's a great question and something you seriously need to consider. You can either try and sell enough products to generate enough profit which can then be used to cover the increased fixed costs in the future or you could look at other sources of finance, we have a video on sources of finance, just have a watch of that it may give you some inspiration.
Hello sir I have a question I would like to ask you about it. Do small businesses have higher fixed costs than large businesses due to diseconomies of scale like higher interest rates charged by the bank?
Great question, but it's more likely to be the other way around as big businesses will have more employees on salaries and bigger buildings to pay for etc. So their fixed costs are likely to be bigger on average!
@@TwoTeachers makes so much sense thank you👍
Thank You
🙏👌👌
You're welcome 👍
Hello,
Two plants with different fixed cost, Plant A $5000 fixed cost and Plant B $7000, plant A produces 3000 jackets per day with an average cost of $3 per Jacket and Plant B produces 2500 Jackets per day with an average cost of $3.5 per jacket. If the owners of Plants want to increase the production from 5500 to 6000, in which plant should the owner increase the production? in which plant is more economical?
According to a good friend of mine (Chat GPT) the answer is as follows:
Plant A becomes more economical at the higher production level, and the owner should increase production in Plant A to achieve the desired output.
Very helpful
Really happy we could help! 👍
hi your videos are amazing
Thank you, really appreciate you saying that 👍
Thank you
Thanks for watching!