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by gbear605 2715 days ago
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.
1 comments

Not the person you're responding to, but their grand parent. If you look at food costs at the grocery store, it's pretty clear that a plant based burger which is cheaper than a beef based burger is possible in theory. And I actually believe that this will happen eventually, but I was responding to somebody who was stating categorically that these burgers were more environmentally friendly than beef burgers. My point was simply that that's probably not the case today.

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.