Economy of Scale

A business principle that basically states that as the volume increases, the contribution margin or profit increases at a faster rate per unit of measurement. Normally affiliated with processes, especially manufacturing, this theory is not pure and therefore, application must be well conceived.  For a more in-depth analysis, read:  Economies of Scale.

Economies of Scale

Economies of Scale

Of the basic business principles, economies of scale has the greatest impact on profitability over any other business principle.  As an enterprise’s investment is spread over higher volume the cost per unit of production decreases.  The differential between sales price and cost changes add to the overall profitability for the company.

Real Estate Agent – Drawbacks and Delusions

Real Estate Agent

The highest prized benefit of owning your own business is independence.  You rely on your skills and have to report to no one but yourself.  This is the allure of becoming a real estate agent.  Imagine, making a lot of money and working when you want to work.  Very appealing to just about anyone, wouldn’t you say?  Well, it is all hogwash! 

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