Comment by adrian_b

5 hours ago

> Actually you aren't "saving money" at all; you're spending money.

You are spending money, but you are spending far less money than the poor spend when paying for exactly the same products or services.

If I want to buy a few server CPUs or a few server computers or a few "datacenter" GPUs, I have to pay at least 2 or 3 times more than billionaires pay for them.

The same if I want to buy any other kinds of components that can be used to build things, e.g. power MOSFET transistors.

There is no "economy of scale" here, because those products are already fabricated in the high volumes that reduce their production costs.

For shipping, the costs are typically the same, regardless if the recipient is a big company or a small company or an individual, so they do not justify the price differences.

Even when the handling and shipping costs were bigger for small quantities, a small business or an individual could just pay the difference in handling and shipping prices, but that does not happen in reality, when the discounts given to the rich are many times higher than the shipping costs.

This policy of huge discounts is one of the main causes why all the markets end up in being dominated by monopolies or quasi-monopolies, because it is impossible for new entrants to compete with the incumbents, who pay much less than them for everything. Thus the biggest companies end up selling mostly between themselves, excluding any others.

Discounts on volume deals are yet another thing since a higher volume helps the business exceed the break-even threshold faster. Also, volume deals have a favorable management effort to income ratio compared to single transactions.

Huge numbers reduce manufacturing costs, but only because they justify investments that are uneconomical at lower volumes. The business would still go bankrupt if they don't read breakeven.

Economies of scale are a real thing and not just because of monopolies wanting to deny new incumbents.