Thursday, November 24, 2011

How much does a disposable razor blade cost to make?

I've looked and looked, but no one (except the razor companies) seems to know how much they cost to make. I know they cost a lot to buy!|||The variable direct cost is probably very low, maybe only a few cents per unit. The material cost is probably less than a nickel. but when you consider the equipment and factory required to do the work, the total cost is considerably higher. Of course the margin on the razors is also very high. That's typical for these kinds of products.





I once learned that it cost about 1/2 cent to make a pack of cigarettes. That was long ago, so now it probably costs a whole cent. Clearly there is little relationship between the manufacturing cost of razors and their selling price.

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