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The problem is scale and safety. I can start a company tomorrow selling farm churned butter from the cows that operate at my farm. It is the best butter becaus
by Agustus 11y ago
The problem is scale and safety.
I can start a company tomorrow selling farm churned butter from the cows that operate at my farm. It is the best butter because every morning I go to the cows and tell them they are the best cows this side of the Mississippi. I churn the butter by hand and sell out a lot of product. However, when I max out the cows on my location, I need to buy more cows for my farm and increase the amount of land or I can ask Farmer Jed next door to talk to his cows in the morning and tell them that his cows are the best cows this side of the Mississippi. Farmer Jed churns the butter by hand, but he forgets to wash his hands after he goes to the bathroom, something I never did like about him, but he tells this great story about him and the milk maid over in Aberdeen.
Multiply my success more and more and finally I am needing thousands of gallons of milk, a centralized processing system to churn the butter and ensure quality control of my brand and then I have a knock on my door from a white glove butter churner. They have gone through the regulatory process with the FDA, have done butter churning for other companies successfully, and have a great track record. I will hand over that portion to them.
This is why the companies start out warm and fuzzy, but regulatory issues, meeting demand, and other fun things cause a drive to outsourced production.
- dougmany 11y agoI agree the real issue is the push to grow. there is an optimum size for everything and the irrational drive to make everything as big as possible has caused us to loose a lot of great things.
- e12e 11y agoMarx would say this is what happens when you push for increase in profit year to year, quarter to quarter.