The situation The shortage of qualifi employees and the growth of salary expectations force either to hire insufficiently competent workers, train them on the spot, or to raise the salaries of already experienc craftsmen – all this leads to an increase in payroll costs and, accordingly, the cost price.
Geopolitical situation . In some cases, the cost of production is also affect by sanctions or the prices of the necessary materials/consumables/equipment, which are inflat due to difficulties with purchasing within the country.
New laws . If the state introduces concessions for business or, on the contrary, new taxes, fees, the cost price changes along with this, either up or down.
Geographical location of production
If the workshop is inconveniently locat, more money will ne to be spent on transporting first the raw materials, and then the finish goods.
The situation Market conditions : The behavior of competitors in a niche or an increase/decrease in demand for goods or services may force a business to reconsider costs.
Climate and calendar conditions
At different times of the year, the demand for goods and chinese overseas europe database services changes, which forces changes in production workload. In addition, in cold weather, heating costs increase, and in hot weather, electricity costs increase.
Development of science and technology . Progress can make some materials and consumables cheaper, making equipment more accessible. At the same time, outdat technologies can become more expensive over time – there are fewer specialists capable of servicing them, as well as fewer parts and consumables.
Internal reasons
Implementation of new technologies . Timely and reasonable many of our readers have complained modernization of production will ruce costs in the long term if new equipment will save effort, materials and time. But if you implement it just for the sake of the fact of implementation, there is a high risk of increasing the cost price – new machines ne to be paid off.
Increasing production capacity . The more units of goods saudi phone number the production can produce in a period of time, the lower their cost price will be. Therefore, if there is demand, it makes sense to load the line to the fullest. But if you buy new machines without the corresponding demand for the products, they will be idle.
