Comment by bluGill
11 days ago
You are missing something: quantity. A toilet brush itself is low value, but the US needs 30 million per year (this is a guess, but it seems reasonable enough - every person buys one every 10 years, which seems right based on how long they last. I am likely off, but probably not by an order of magnitude so let us use that number for discussion unless/until someone really wants to find a better number). If you can make/sell a million brushes per year with a gross profit of $1 on each that is a million dollars, if labor and the machines are amortize to $.50 each you net profit is then $500k/year - many small company CEOs would be happy with that.
You can run the numbers many different ways, but the important point is low value production is always about volume.
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