Good-Guy
VIP Contributor
Production cost is the total price of manufacturing any kind of goods. Whenever you manufacture an item, you tend to look at various factors. Whatever products you look in the market were manufactured. They did not come into existence automatically. For example, if you buy a chocolate bar from the market, you must realized that it was manufactured by the company and company invested a good amount of money to make that single chocolate bar. One of the main aspects of manufacturing products is purchasing raw materials. In case of chocolate manufacturing, it takes capital to buy cocoa, sugar, preservatives, chemicals, etc to manufacture a single bar of chocolate.
Moreover, the manufacturing company also needs to separately buy more materials to produce the wrappers of chocolates. So sometimes the production cost of certain products could be higher and I think this is why many things are so expensive in market. These products are probably bought by wholesalers or middlemen and then they are delivered to retailers who buy them at wholesale price and sell those items at retail price to people. So, what steps do you think could be taken to reduce the production cost of many goods that are being manufactured by different companies?
Moreover, the manufacturing company also needs to separately buy more materials to produce the wrappers of chocolates. So sometimes the production cost of certain products could be higher and I think this is why many things are so expensive in market. These products are probably bought by wholesalers or middlemen and then they are delivered to retailers who buy them at wholesale price and sell those items at retail price to people. So, what steps do you think could be taken to reduce the production cost of many goods that are being manufactured by different companies?