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Economies of scale

  • 06-08-2008 12:05am
    #1
    Registered Users, Registered Users 2 Posts: 849 ✭✭✭


    I've been working on some back of a cigarette packet sums re cost per sq foot of self build and I'm wondering about what adding square footage does to the total cost.

    My reasoning is along these lines.

    Basic fixed costs are the same regardless such as planning fees, esb connection etc

    Things like your kitchen still use one cooker, one fridge etc.

    So basically if a 1000 square foot house costs 130 euro per square foot to get to a standard finish it doesn't stand to reason that a 4000 square foot will cost the same per square foot.

    Ok so you could argue that a 4000 square foot house might be finished to a higher standard but I don't think anyone deliberately finishes a house to a lower standard.

    JWT


Comments

  • Closed Accounts Posts: 457 ✭✭Leadership


    I guess if you have 400k to build a 4000 sq/ft house then you would have some spare cash to add some luxury items to the finish. That is of course unless you have 12 kids to fill the space.

    Take the kitchen, in a big house chances are that you would put in a double size cooker, island, american fridge freezer etc etc. In a small house where space is a premium then you dont have the choice of a big cooker etc.

    Space = Fill it with expensive add on's


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