Economics of scale- why small projects can be relatively expensive

One cost factor central to both manufacturing and construction is the economics of scale. Although this sounds like a complex term, it's actually very simple. Whether manufacturing a product or building something, the larger in size or more numerous in quantity that something is, the less it will cost per unit to make. A 1200 square foot stamped concrete patio and a 200 square foot stamped patio will not cost the same amount per square foot. The smaller patio will cost considerably more per square foot. Let's look at the reason why.

We rent stamps for many of our projects. Let's just say that for this project we need to rent a set of stamps for $300. If we are stamping a 150 square foot patio, it will cost $2 per square foot just to rent those stamps. However, if we are stamping a 600 square foot patio, it will only cost $0.50 per square foot to rent the stamps.

This same concept applies for fuel and machinery.  It takes the same amount of fuel to get to 150 square foot job as it does to get to a 600 square foot job. It takes the same truck and excavation machinery to do both jobs.  Dividing the total cost of those things by the square footage of the concrete to be place means costs will be more per square foot on the smaller job.

Ready mix companies charge small load fees for loads of concrete under 5 cubic yards. This cost varies by company and load size but is normally somewhere in between $75 and $250. The 150 square foot patio requires two yards of concrete, which will incur the $250 small delivery charge.  That's an extra $1.66 per square foot for that patio not charged on the larger patio. For this reason, it’s hard to say what an “average” price is for stamped concrete.

If a homeowner is expecting their patio or sidewalk to cost what a friend’s project did, it's important to consider the size of that project in relation to the friend’s project.