Startup Funding Espresso Economies of Scale
Economies of Scale Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Economies of scale is an economic principle in which the costs of delivering a product go down as the volume goes up. Over the life of a product, the cost per unit should decrease. For startups, this means the cost to build your product should go down as you ramp up sales. Economies of scale can come from a reduced cost of materials as the startup purchases higher volumes.\xa0 It can also come from deploying technology tools and spreading that cost over more units or customers. There are also financial benefits.\xa0 As the startup grows larger it can raise funding or take on loans at a lower rate. Economies of scale can help the company grow to a larger size. It can also help increase profits.\xa0 Customers should see lower prices and better products. Employees should see higher wages. It\u2019s important to plan for economies of scale and build it into the business model.\xa0 \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .