Can someone explain how an industrial business makes its prophet and budgets?

tens of thousands of equipment
lighting
plumbing
heating
PPE and other provided goods
employees
fuel for the equipment
investing in product


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Most Helpful Guy

  • It makes its budget based on expected expenses and projected income. It makes a profit by creating and selling its products for more than it pays for cost of goods, payroll, overhead, advertising, taxes, and other expenses. This is high school economics stuff. Did you have specific questions about a specific company or industry?

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    • why are others not buying companies product? the product is lumber.

    • Is this specific to a company? Because the lumber market is fairly strong right now. New housing starts are up a bit. Retail lumber prices have been steadily increasing for a number of years, and not by small amounts. And I live right behind a 600+ acre timber farm that is about to be harvested. The only downward pressure I see in the industry at present is imported products from China, and their economy is faltering. So I do see some potential price undercutting possible, although I think they'd be better off transportation-wise selling to emerging markets in India. The day I see retail lumber prices starting to fall is when I'll believe there is an issue with the US wholesale lumber market.

    • thanks, your get the mho!

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