company news about Low Per-Unit Cost in Mass Production: The Path to Affordability

For a company producing disposable razors, which are sold in billions of units globally, every cent of cost matters. The razor handle is a small plastic part, but when multiplied by millions, the cost becomes significant. By using a highly efficient injection molding process, the company was able to produce each handle for less than $0.01. This low per-unit cost was the foundation of their business model, allowing them to offer a high-quality product at a price point that was accessible to a massive global market. The sheer volume of production amortizes the initial mold cost, making each subsequent part incredibly cheap to produce.

The toy industry is another excellent example. A company manufacturing a popular plastic toy with millions of units sold annually relies on the low per-unit cost of injection molding to remain profitable. The initial investment in the molds was high, but with a production run of over 50 million units, the mold cost per unit was negligible. This allowed the company to sell the toy at a competitive price while maintaining a healthy profit margin. The inverse relationship between production volume and per-unit cost makes plastic injection molding a powerful engine for profitability in a high-volume market.