Ping Unka, Ed et al: The economics of Mom&Pop production....

Ping Unka, Ed et al: The economics of Mom&Pop production....

Post by Existential Angs » Tue, 05 Apr 2011 20:53:14



Awl --

Cable has a litany of how-it's-made/done type shows, of varying quality, and
I remember seeing a rough comparison between the KrispyKreme and a local
donut maker.

I wonder, ultimately, just how much cheaper a Krispy Kreme donut is, than
this local guy.  Roughly speaking, donuts cost about $1 a piece
(NYfuknCity), no matter where you go, what brand you buy, local or
otherwise.

It seems that altho KK can indeed make a pile of donuts that will reach the
moon in very short order, the mechanized expense for this capability is
fairly humongous -- which may explain the stupidly high sotck price of $50
in 2003, which fell to $1.15 in 2008, and is now about $5.  Pumped and
dumped DAT dough, eh??

Inyway, when you get done paying for all the fantastic pyooter controlled
mechanical equipment, all the effing investment bankers that brought dat hot
potato public, all the lawyers, accountants, logistics systems, etc etc,
instead of seeing a cheaper donut, we see a donut that is perhaps a fraction
of the *material* cost to produce, but with a huge top-heavy

--

--
Kristofer Hogg
http://www.CEEGYNY.ORG

 
 
 

Ping Unka, Ed et al: The economics of Mom&Pop production....

Post by Ed Huntres » Tue, 05 Apr 2011 22:51:32



Quote:
> Awl --

> Cable has a litany of how-it's-made/done type shows, of varying quality,
> and I remember seeing a rough comparison between the KrispyKreme and a
> local donut maker.

> I wonder, ultimately, just how much cheaper a Krispy Kreme donut is, than
> this local guy.  Roughly speaking, donuts cost about $1 a piece
> (NYfuknCity), no matter where you go, what brand you buy, local or
> otherwise.

> It seems that altho KK can indeed make a pile of donuts that will reach
> the moon in very short order, the mechanized expense for this capability
> is fairly humongous -- which may explain the stupidly high sotck price of
> $50 in 2003, which fell to $1.15 in 2008, and is now about $5.  Pumped and
> dumped DAT dough, eh??

> Inyway, when you get done paying for all the fantastic pyooter controlled
> mechanical equipment, all the effing investment bankers that brought dat
> hot potato public, all the lawyers, accountants, logistics systems, etc
> etc, instead of seeing a cheaper donut, we see a donut that is perhaps a
> fraction of the *material* cost to produce, but with a huge top-heavy

Convenience food items are better understood as services than as products.
It's not a matter of properly classifying them -- you can shoehorn them into
either category -- but the economics of delivering the thing, the fact that
it's consumed quickly, and that convenient delivery is the key to its
demand, make it easier to understand as a service. That also applies to
donut competition. Price competition only goes on at the margins.

P&L statements for donut makers probably look more like those for dry
cleaners than for typical manufacturers. Balance sheets, for the big donut
makers, may look more like those of manufacturing operations.

--
Ed Huntress

- Show quoted text -

Quote:

> --

> --
> Kristofer Hogg
> http://www.CEEGYNY.ORG


 
 
 

Ping Unka, Ed et al: The economics of Mom&Pop production....

Post by sjedgingN0S » Tue, 05 Apr 2011 23:23:44


Quote:

> Awl --

> Cable has a litany of how-it's-made/done type shows, of varying quality, and
> I remember seeing a rough comparison between the KrispyKreme and a local
> donut maker.

> I wonder, ultimately, just how much cheaper a Krispy Kreme donut is, than
> this local guy.  Roughly speaking, donuts cost about $1 a piece
> (NYfuknCity), no matter where you go, what brand you buy, local or
> otherwise.

> It seems that altho KK can indeed make a pile of donuts that will reach the
> moon in very short order, the mechanized expense for this capability is
> fairly humongous -- which may explain the stupidly high sotck price of $50
> in 2003, which fell to $1.15 in 2008, and is now about $5.  Pumped and
> dumped DAT dough, eh??

> Inyway, when you get done paying for all the fantastic pyooter controlled
> mechanical equipment, all the effing investment bankers that brought dat hot
> potato public, all the lawyers, accountants, logistics systems, etc etc,
> instead of seeing a cheaper donut, we see a donut that is perhaps a fraction
> of the *material* cost to produce, but with a huge top-heavy

Well it is hard to imagine a healthy donut, but there can be huge
differences in the production of food on a small scale compared to mass
production. People willingly pay 2 times as much for eggs that are from
chickens that are allowed to forage for themselves eating bugs and worms
and such (in addition to some fed grain). The problem is on the supply
side. You can make a good living with 100,000 layer hens in a factory
farm, but raising free range layers can never be much more than a
hobbyist endeavor unless you could get people to pay maybe 20 times the
cost of ordinary eggs.

-jim

- Show quoted text -

Quote:

> --

> --
> Kristofer Hogg
> http://www.CEEGYNY.ORG

 
 
 

Ping Unka, Ed et al: The economics of Mom&Pop production....

Post by Paul » Wed, 06 Apr 2011 02:05:57



Quote:
> Awl --

> Cable has a litany of how-it's-made/done type shows, of varying quality, and
> I remember seeing a rough comparison between the KrispyKreme and a local
> donut maker.

> I wonder, ultimately, just how much cheaper a Krispy Kreme donut is, than
> this local guy. ?Roughly speaking, donuts cost about $1 a piece
> (NYfuknCity), no matter where you go, what brand you buy, local or
> otherwise.

> It seems that altho KK can indeed make a pile of donuts that will reach the
> moon in very short order, the mechanized expense for this capability is
> fairly humongous -- which may explain the stupidly high sotck price of $50
> in 2003, which fell to $1.15 in 2008, and is now about $5. ?Pumped and
> dumped DAT dough, eh??

> Inyway, when you get done paying for all the fantastic pyooter controlled
> mechanical equipment, all the effing investment bankers that brought dat hot
> potato public, all the lawyers, accountants, logistics systems, etc etc,
> instead of seeing a cheaper donut, we see a donut that is perhaps a fraction
> of the *material* cost to produce, but with a huge top-heavy

> --

> --
> Kristofer Hogghttp://www.CEEGYNY.ORG

Hey Hogg,

Screw the donut-hole economics troll

Tell me more about that (presumably accidental) link to the intrepid
Ms Annabi, and her quest for QOL on the banks of the Hudson.
Most interesting thing you've posted this decade.

How goes the fight?  How will she ever survive the inevitable
Sharptonesque drive-by ratt-a-tat-tats of RACISM?

Have not our elites already blessed that boogie-woogie-beat as an
affirmative celebration of "their" Kultshur???

How can I get a similar CEEGYNY-inspired platform going in MY
hometown?

Here in bucolic Bell-Hampton we've just had an anonymous donor, no
doubt a member of our ever growing Head-of-Hedge-Fund Class, pony-up
for a new Shot-Spotter (?) System. Said system to be installed on our
wrong side of the tracks.

I'm sure it would be just a simple matter of programming to have it
also detect the sonorous soundings of Snoop Dawg.
The revenue opportunities seem unlimited

Seriously, I'm impressed by Sandy's Last Stand. Good luck to her and
the decent people of Van Cortlandt Crest.

Ur BFF,
PaulS