ONE PORTFOLIO PARTNER BRINGS ECONOMY OF SCALE
REDUCING LONG RUN AVERAGE COSTS
To help our clients reduce costs, we successfully leverage critical aspects of the utility spend. By wholesale and retail distribution and increasing the speed of operations, AGES lowers the cost of both fixed and working capital. Other common sources of economies of scale are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), and technological (taking advantage of returns to scale in the production function). Each of these factors reduces the long run average costs (LRAC) of production by shifting the short-run average total cost (SRATC) curve down and to the right.
ABILITY TO ELIMINATE SUPPLY CHAIN BURDENS
AGES’ purchasing process eliminates unnecessary markups from multiple levels. We investigate and qualify new sources – sourcing both domestically and abroad to find the best solution for the project. We are always negotiating with existing vendors for better deals and working on developing new technology with our R&D partners around the world. Unlike most of the market, AGES is not tied to any particular vendor – we are brand agnostic. Ultimately, we seek the best and most innovative technologies to pass along to our portfolio partners at the best price.