Eric Simms wrote:

> By the way, you counter your arguments:  with
> the rising prices of fuel and other commodities, that is yet
> another good reason to have less bees to be more profitable when
> honey prices are up:  you'll use half as much fuel and all of your
> operating costs are lower as I stated.  *THINK*  then type.

Economy of scale comes into any business decision. Small is not 
necessarily good nor is big. There is a right point where production 
costs and demand meet.

When you get into the commodities arena, small generally does not work 
unless you can deliver a specialized product. The margins are just too 
small. Take fuel costs. You have a marginal increase in cost per unit 
added, compared to an empty rig. So more is actually better. You want 
to fully load the truck/semi whatever with a full load to get the best 
return. Same goes for shipping honey or any commodity with a small 
margin. You want to sell more to get the best return. Especially when 
demand is high and the margin is great.

Companies do not downsize when their product is in demand and margins 
are greater. They take advantage of the situation and produce more.

Since I have completed typing, I will now think.

Bill Truesdell
Bath, Maine

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