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Tag: manufacturing

Understanding Margin in Product Manufacturing

There is a cost associated with every product ever made. The coffee cup you are drinking out of. The chair you are sitting in. The screen you are looking at. Every item around you was produced at some point from some sort of human labor and can have some sort of value placed on the generation of that object. The way that companies make money is to then sell products for a higher value than that cost and therefore make some money on that object. Welcome to the wonderful world of profit margin.