This is the first of what I see as an ongoing, if irregular, series for those rare occasions--you probably ought to sit down--when something comes up and I have to admit some degree of ignorance on a currently hot topic.
Today's question is a bit technical and relates to economies of scale in paint ball manufacture. I'm curious about how it breaks down. Plainly the key elements are volume and efficiency in the economy of scale but it must be matched against materiel cost and cost of operation. [Which, I'm guessing, along with debt load is where the big boys are getting into trouble.] My question is this: How competitive can a small scale operation be in terms of cost per ball? (No, I'm not planning on buying the Encapsulator Jr. and starting a home business.) I'm just wondering if there is some middle ground that can be price competitive.
If you've got an answer or an idea I'm listening.
Wednesday, November 12, 2008
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