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by gbear605
2715 days ago
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Or there are significant fixed costs that have not been amortized - for example, R&D for an entirely new type of burger. It’s very possible that the materials cost (growing ingredients + manufacturing) of the impossible burger is less than the materials costs of a beef burger while still costing more in a store. |
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And to speak to your point specifically: if it were simply a matter of reducing per-unit R&D costs by achieving economies of scale, they should be selling below cost so that they can grow unit volume. It's hard to achieve economies of scale when your product is more expensive than the competition.