Economies of scale

8 04 2025
The innards of a cheap clock mechanism. A VERY cheap one!

The clock mechanism above cost about £6 on Amazon UK. I bought several about 4 years ago and it seems that they have come to the end of their design life. That’s in contrast to the one I was given by Trevor some 15 years ago and is still going fine. He did tell me at the time that it was a good Swiss brand and just gave it to me so of course cost doesn’t come into the equation.

I have been looking on Amazon for some replacements and they all seem to be of much the same quality – cheap. In fact if I bought 30 I would pay £24. How can they possibly make them so cheaply ?Economies of scale I guess. If we look around us there are plenty of other examples. The one that immediately comes to mind are the Bic razors.

I admit to using a Bic razor once a week. On Sunday I take a step back from the tyranny of daily shaving and let my beard grow. I hate shaving. Of course as a teenager I couldn’t wait to start shaving and be a man. That all changed the first morning after being inducted into the Rhodesian army in 1978. We were made to stand to attention by our foot lockers the duty sergeant. “Shaved this morning Roberts?”, he demanded, poking his face to within a few centimetres of mine. “No sarge!” I replied. The question was repeated at the next man and the next. After a few more negatives he gave up. “Anyone who has not shaved go and do so now!” he bellowed. Most of the barrack room dashed out to the washroom, shaving kit in hand. Ever since it’s become a daily routine except for Sundays and no, there’s no truth to the common idea that the more one shaves the more one has to. I wish there were – I would apply it to my increasingly sparse head hair!

Bic has of course taken economies of scale to the limit. Razors are designed to work for two shaves, three if you can handle the pulling, then they are consigned to the bin. It would be easy enough to use harder steel that could hold an edge for longer like the old Gillette G2s of my youth but that’s no the point. You must buy more. The same with their ballpoint pens. They are so cheap that it doesn’t matter if you lose one – you’ve bought a box of them anyway. There are six fountain pens in my drawer and they all work. One was my mother’s and another I had at school nearly 50 years ago. But who uses a fountain pen now? Much as I like using them it’s easier to use a smartphone and just dictate the message. So they sit in the drawer, fond relics of an age when my right hand worked well and I won the Headmaster’s Prize for Handwriting (at junior school).

My business works on large numbers of plants, mostly seedlings, sold at a relatively small markup. Last year I sold 8,474,903 seedlings, for US$, which sounds like a lot but only gave me a profit before tax of $20,284 and there’s not a lot one can do with that in Zimbabwe’s economic climate. I have not included those sold for local currency which is too small a number to be of consequence. It doesn’t help that I’m charging the same as I was 10 years ago when we last had the US$ (there has been one local currency in between) and business was much more profitable. Now there’s a lot of competition around with people who probably evade tax and use family members for unpaid labour. So I’ve had to keep my prices down. I haven’t been able to keep the nursery full and costs have risen, labour especially. I need to fill up the nursery and, like in the Bic model, make a small profit per unit but really sell lots of them. Any ideas gratefully accepted.


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8 04 2025
Duncan Roberts's avatar Duncan Roberts

Sadly cheap disposable seems to be the way of the modern world!

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