why is it as a company cheaper to buy things than produce them yourself before refining them?

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If i produce bottled water i buy water bottles and fill them with water. Why do i not buy plastic and make my own bottles? Why does it not actually save on costs from paying another company and taxes from buying/selling, and also possibly transportation?

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Anonymous 0 Comments

To answer your question exactly. My company does make its own bottles however in the area there is another company that just makes bottles and ships them to other bottling companies.

When investing in your company the higher ups tend to look at how long it would take to start seeing a return on their investment. A machine that turns resin into a preform and a blow mold that turns preforms into bottles can be incredibly costly. On top of the fact that you need to typically hire higher paid technicians to operate them, and keep up with the maintenance on machines. A low bottle producing company may decide the return on the investment is just to far out to make it

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