Timbuk2 is a San Francisco company that makes a variety of messenger, cyclist, and laptop bags. The company’s Web site (Timbuk2.com) allows customers to design their own size, color, and fabric bags with specific features and accessories; then the company sews the bags to the customers’ specifications.
a Why would Timbuk2 be able to produce custom-made messenger bags for almost the same cost as mass-produced ones?
b. Would you expect the quality of the custom-produced messenger bags to be higher or lower than the mass-produced ones? Discuss the rationale for your answer.
c. Why would the custom-made messenger bags show a high profit margin?