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Actually, in much of the third-world, this is not true. Hand made is cheaper than manufactured . I know it seems ass backwards, but the best examples I know are
by jorgem 17y ago
Actually, in much of the third-world, this is not true. Hand made is cheaper than manufactured . I know it seems ass backwards, but the best examples I know are in Mexico:
1) Guy selling handmade pots (or any handmade product) -- his product is worthless. Imported electronics -- very expensive.
2) It's cheaper to have 30-50 guys using hammers and handsaws on a home construction site, than to pay for power tools.
So to the third-worlders: Hand made is cheaper.
- mattmaroon 17y agoSo let me get this straight, you're comparing pottery to iPods and from that drawing a conclusion? Hand made goods are almost never cheaper, even in Mexico. A handmade pot would cost more than a machine produced one. It's just that the cheap labor makes the production equipment an unjustifiable investment because the ROI is less. It's less cheaper, but still cheaper. In general of course.
- bsaunder 17y agocheap labor makes the production equipment an unjustifiable investment because the ROI is less I think that's his/her point. The manufactured pot would need to be priced higher (to pay for the production equipment over a reasonable depreciation period) in comparison to the hand produced pot that incurs no such overhead to produce, just cheap labor. So in effect, yes, a manufactured pot would be more than a hand produced pot. I do think the commenter confused the matter by including imported items in the argument. Given unlimited future earnings, you are right that a manufactured product may be cheaper to produce since there's much less labor cost, but in all practicality I'm not sure it applies.