How to Start a Boutique Olive Oil Production Business?

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Thinking about launching a boutique olive oil production business? Ever wondered what it takes to craft premium artisanal olive oils that stand out in a crowded market? Discover the essential steps to turn your passion into a profitable venture.

Are you ready to master olive oil pressing techniques and explore innovative packaging ideas? Unlock expert insights and practical tools, including our Boutique Olive Oil Production Business Plan Template, to set your brand apart with quality and authenticity.

How to Start a Boutique Olive Oil Production Business?
# Step Name Description
1 Develop Your Boutique Olive Oil Production Concept and Business Plan Define your production model, select olive varieties, analyze competitors, and draft a detailed 3–5 year business plan with clear goals.
2 Secure Funding and Budget Your Costs Calculate startup and operating costs, explore financing options, and prepare financial documents with a contingency fund for risks.
3 Choose Location and Secure Permits Select optimal land, ensure zoning compliance, obtain necessary permits, and verify water and environmental approvals.
4 Design and Set Up Your Boutique Olive Oil Production Facility Plan grove layout, invest in milling and bottling equipment, set up quality control, and establish compliant packaging stations.
5 Hire and Train Your Team Recruit skilled staff, provide training on sustainable farming and food safety, and develop seasonal labor and performance plans.
6 Launch Marketing and Promotional Campaigns Create a professional website, engage on social media, organize launch events, and build partnerships with local retailers.
7 Open and Manage Daily Operations Oversee harvest and production, manage inventory and sales, maintain quality control, and continuously improve workflows.



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Key Takeaways

  • Thorough market research and a clear value proposition are essential to position your boutique olive oil brand successfully in a competitive $1.5 billion U.S. market.
  • Anticipate challenges like high startup costs, crop variability, and strict regulatory requirements to build a resilient and compliant operation.
  • Developing a detailed business plan with robust financial projections and a strategic marketing approach lays the foundation for sustainable growth and profitability.
  • Following a structured 7-step launch process—from concept development to daily operations—helps you manage risks and scale your boutique olive oil production effectively.



Key Factors To Consider Before Starting Boutique Olive Oil Production

Starting a boutique olive oil production business demands careful planning and market insight. Understanding the evolving U.S. olive oil market and consumer trends is crucial to position your brand effectively. Let’s focus on the essential factors that will shape your artisanal olive oil making venture, from costs to customer preferences.


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Essential Considerations for Boutique Olive Oil Production


  • Market Size & Growth

  • The U.S. olive oil market was valued at $1.5 billion in 2023, with premium and artisanal segments showing strong growth, signaling opportunity for small scale olive oil production.

  • Consumer Preferences

  • Over 60% of specialty food shoppers prioritize traceability, organic certification, and sustainability, making these key in your olive oil marketing strategies.

  • Target Audience & Value Proposition

  • Define your audience—gourmet food buyers, health-conscious consumers, chefs, specialty retailers—and differentiate with unique selling points like single-estate production, distinctive flavor profiles, or regenerative farming.

  • Startup Costs & Production Models

  • Expect startup costs between $250,000 and $500,000 for small-batch operations, covering land, olive groves management, equipment, and facilities. Choose between estate-grown or contract milling, and decide if you’ll sell direct-to-consumer or wholesale. For detailed financial planning, see What Is the Cost to Start a Boutique Olive Oil Production Business?

  • Regulatory & Operational Requirements

  • Understand agricultural zoning, water rights, and organic certification rules, especially in California, to ensure compliance and smooth operations in your organic olive oil production.


Biggest Challenges Of Running Boutique Olive Oil Production

Starting a boutique olive oil production business like Golden State Groves means facing unique challenges that can make or break your success. From managing costly upfront investments to navigating tough market competition, these hurdles require strategic planning and resilience. Understanding these challenges upfront will prepare you to build a sustainable artisanal olive oil making operation that stands out.


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Key Challenges in Boutique Olive Oil Production


  • High upfront costs: Land acquisition, planting olive groves that take 3-5 years to mature, plus investing in quality pressing equipment.
  • Unpredictable yields: Crop fluctuations can reach 30% year-over-year due to weather and disease impacts on olive groves management.
  • Maintaining consistent quality: Requires regular lab testing for acidity and polyphenol levels to meet extra virgin olive oil manufacturing standards.
  • Market competition: Over 95% of U.S. olive oil is imported, often priced lower, making effective marketing strategies and brand education essential.
  • Strict regulations: Compliance with labeling and traceability standards like those from the California Olive Oil Council is mandatory.
  • Distribution hurdles: Managing shelf life, choosing the right olive oil packaging ideas, and logistics for retail and direct-to-consumer sales.


For a deeper dive into measuring your boutique olive oil production success, check out What Are the 5 Key Metrics for Boutique Olive Oil Production?



What Legal And Regulatory Steps Are Required To Open Boutique Olive Oil Production?

Starting your boutique olive oil production means navigating a clear set of legal and regulatory steps to operate smoothly and avoid costly delays. These requirements ensure your artisanal olive oil making complies with state and federal laws, protecting your brand and customers. Understanding these steps upfront is crucial for your small scale olive oil production success.


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Key Legal and Regulatory Steps


  • Register your agricultural business with the state and obtain a federal EIN to handle taxes and hiring.
  • Secure agricultural permits including water use rights and confirm land use zoning compliance for your olive groves management.
  • Obtain food processing licenses from state and local health departments; for example, California requires a Processed Food Registration (PFR) for olive oil packaging.
  • Meet FDA labeling and nutritional disclosure standards to ensure your extra virgin olive oil manufacturing is consumer-ready and compliant.
  • Apply for organic certification through USDA-accredited agencies if marketing organic olive oil production, with costs averaging $700–$1,200 annually.
  • Comply with labor laws for seasonal and full-time workers, including minimum wage and mandatory safety training.
  • Obtain product liability insurance and coverage for crop loss, equipment, and general business operations to protect your investment.


For a deeper dive into the financial side of boutique olive oil production, check out How Much Does an Owner Make from Boutique Olive Oil Production? This insight can help you align your olive oil business plan with realistic revenue expectations.



How Do You Create Strong Boutique Olive Oil Production Business Plan?

Building a solid olive oil business plan is your foundation for success in boutique olive oil production. This plan must cover every critical aspect—from market analysis to operational efficiency—to ensure your artisanal olive oil making stands out. Keep reading to discover the essential components that will shape your premium small scale olive oil production venture.


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Key Steps to Craft Your Boutique Olive Oil Business Plan


  • Conduct Detailed Market Analysis

    Identify target segments and competitors—top U.S. boutique brands typically sell 10,000–50,000 liters annually. Understand customer preferences and niche demands.

  • Outline Your Production Model

    Decide between estate-grown, cooperative, or contract milling. Specify acreage, olive varieties, and expected yield per acre, which averages 1–2 tons/acre in California.

  • Build Robust Financial Projections

    Include capital expenditures, operating costs, and 3–5 year revenue forecasts. Factor in costs for extra virgin olive oil manufacturing equipment and packaging.

  • Define Your Marketing and Value Proposition

    Choose channels like DTC e-commerce, farmers’ markets, specialty retailers, or foodservice partnerships. Highlight sustainability certifications, unique flavor profiles, and farm-to-table transparency.

  • Plan for Operational Efficiency

    Schedule harvest and processing timelines carefully, considering olive oil’s shelf life of 18–24 months. Implement inventory management to maintain quality and freshness.

  • Outline Growth Strategies

    Explore product line extensions like infused oils or gift sets, agritourism, and private label opportunities to scale your boutique olive oil production sustainably.





How Do You Ensure Profitability In Boutique Olive Oil Production Business?

Profitability in boutique olive oil production hinges on premium quality and smart business strategies. You can charge a premium price by emphasizing quality, traceability, and elegant packaging. Controlling costs and boosting operational efficiency will protect your margins while smart marketing and diversified revenue streams build lasting customer loyalty.


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Key Profit Drivers for Your Boutique Olive Oil Business


  • Set Premium Pricing

    Charge between $25–$40 per 500ml bottle by highlighting artisanal quality, traceability, and standout olive oil packaging ideas.
  • Control Costs

    Optimize harvest timing to maximize yield, minimize waste, and negotiate supplier deals for bottles and packaging to keep expenses lean.
  • Boost Operational Efficiency

    Invest in modern milling equipment to hit the industry benchmark of 15–20% oil yield by weight through improved olive oil pressing techniques.
  • Build Customer Loyalty & Diversify

    Use subscription models, seasonal releases, and direct-to-consumer sales to gain 30–50% higher margins than wholesale. Add agritourism, branded merchandise, and co-packing as extra revenue streams.
  • Leverage Digital Marketing & Storytelling

    Capitalize on the fact that over 70% of specialty food purchases are influenced by brand story to stand out in the artisanal olive oil market.
  • Manage Cash Flow

    Closely monitor finances during off-season months and maintain a reserve fund to handle crop variability and unexpected costs. For a detailed breakdown, see What Is the Cost to Start a Boutique Olive Oil Production Business?.




What Are 7 Steps To Open Boutique Olive Oil Production?



KPI 1: Develop Your Boutique Olive Oil Production Concept and Business Plan


Have you clearly defined how your boutique olive oil business will stand out in a crowded market? This foundational step is critical because it shapes your entire operation, from sourcing olives to marketing your artisanal olive oil. Without a well-thought-out concept and business plan, you risk misaligned goals, inefficient resource use, and missed opportunities for growth.

To execute this step effectively, focus on selecting the right production model and olive varieties that align with your climate and flavor vision. Conduct a thorough competitive analysis to understand your market position, and develop detailed financial projections covering at least 3 to 5 years. Setting measurable goals for sustainability and certifications will also help you gain credibility and attract discerning customers.

Concept Development & Planning

Defining your production model—whether estate-grown, cooperative, or custom milling—is the first strategic decision impacting your supply chain and product quality. Selecting olive varieties suited to your climate and desired flavor profile ensures your oil meets high standards and appeals to your target market.

Competitive analysis of local and imported boutique olive oils reveals market gaps and pricing benchmarks. Drafting a comprehensive business plan with 3–5 year financial projections, including break-even analysis, helps forecast profitability and guides funding needs. Establish clear, measurable goals for sustainability certifications and market entry to strengthen your brand’s authenticity and appeal.

Breaking Down the Step


  • Define your production model: estate-grown, cooperative, or custom milling
  • Identify olive varieties best suited to your climate and flavor goals
  • Conduct a competitive analysis of local and imported boutique olive oil brands
  • Draft a business plan with 3–5 year financial projections, including break-even analysis
  • Set measurable goals for sustainability, certifications, and market entry
  • Outline your marketing and distribution channels: DTC, retail, wholesale, or agritourism
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Key Performance Indicators for Boutique Olive Oil Business Planning


Step Name Description
Develop Your Boutique Olive Oil Production Concept and Business Plan Define your production model, select olive varieties, analyze competitors, and draft a detailed 3–5 year business plan with clear goals.


KPI 2: Secure Funding and Budget Your Costs


How do you determine the financial foundation for your boutique olive oil production business? Securing funding and budgeting your costs is critical because it directly influences your ability to launch and sustain operations through the early years when olive groves are maturing and revenues are limited. Without a clear financial plan, you risk running out of capital before reaching full production, which can stall or end your venture.

To execute this step effectively, start by calculating comprehensive startup costs and ongoing expenses. Then explore multiple funding sources like SBA loans, USDA grants, or private investors. Prepare detailed financial documents such as cash flow statements and capital expenditure plans, and always include a contingency fund to manage risks like crop loss or equipment failure.

Budgeting and Funding Essentials

Begin by estimating your initial investments: land acquisition or lease costs in California range from $10,000 to $50,000 per acre, while planting olive trees costs approximately $10 to $25 per tree. Equipment expenses for milling and bottling can vary between $50,000 and $150,000. Operating costs such as labor, water, packaging, marketing, and certifications should be budgeted annually. This financial groundwork ensures you cover all bases before starting production.

Next, identify funding options tailored to small scale agricultural ventures. SBA loans and USDA grants offer favorable terms, but private investors may provide quicker access to capital. Prepare robust financial documents—cash flow forecasts, capital expenditure plans, and loan applications—to build credibility. Allocate a contingency fund of 10–15% of your total budget to mitigate unforeseen challenges, and plan working capital to sustain operations for 3 to 5 years until your grove reaches full yield.

Breaking Down the Step


  • Calculate startup costs: land ($10,000–$50,000/acre), tree planting ($10–$25/tree), equipment ($50,000–$150,000), and facility setup
  • Build a detailed budget for annual operating expenses including labor, water, packaging, marketing, and certifications
  • Explore funding avenues: SBA loans, USDA grants, agricultural loans, and private investors
  • Prepare financial documents such as cash flow statements, capital expenditure plans, and loan applications
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Key Financial Planning Metrics for Boutique Olive Oil Production


Cost Category Estimated Range Notes
Land Acquisition/Lease $10,000 – $50,000 per acre Varies by location; California prices reflect premium agricultural land
Tree Planting $10 – $25 per tree Depends on olive variety and planting density
Equipment $50,000 – $150,000 Milling, pressing, bottling, and quality control machinery
Annual Operating Expenses Variable Labor, water, packaging, marketing, certifications
Contingency Fund 10–15% of total budget For crop loss, equipment repair, and unforeseen costs
Working Capital 3–5 years of operating expenses To cover pre-yield period until full production


KPI 3: Choose Location and Secure Permits


How do you ensure your boutique olive oil production thrives from the very start? Selecting the right location and securing all necessary permits is a critical foundation that can make or break your olive oil business. This step directly influences your operational efficiency, product quality, and legal compliance, while missteps here can lead to costly delays or regulatory issues.

To navigate this crucial phase effectively, focus on evaluating land based on soil quality, sunlight, and water access, while consulting local agricultural experts. Simultaneously, align your plans with zoning laws and obtain all required permits—from water rights to food processing licenses—to set your boutique olive oil production on a solid, compliant footing.

Location Selection and Compliance

Choosing land with optimal soil, sun exposure, and water access is essential for high-quality olive groves management. Engage with agricultural extension offices to assess site suitability and ensure your location supports sustainable, small scale olive oil production. Verify zoning compliance early to avoid legal conflicts between agricultural and processing operations.

Securing permits involves multiple layers—business registration, agricultural permits, water rights, and environmental approvals. For example, in California, obtaining a PFR (Processor Food Registration) license is mandatory for food processing businesses. If pursuing organic olive oil production, organic certification adds another regulatory step. Accessibility for harvest equipment and delivery logistics must also be factored into your site choice to streamline operations.

Breaking Down the Step


  • Select land with optimal soil quality, full sun exposure, and reliable water access; consult agricultural extension offices for expert guidance.
  • Verify zoning compliance for both agricultural cultivation and olive oil processing activities to prevent legal issues.
  • Secure water rights and environmental permits, especially critical in drought-prone regions like California where over 75% of olive groves require regulated water use.
  • Obtain business registration, agricultural permits, and food processing licenses (e.g., California PFR); apply for organic certification if applicable.
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Key Requirements for Boutique Olive Oil Production Location and Permits


Requirement Details Importance
Soil Quality & Sun Exposure Loamy, well-drained soil with full sun enhances olive tree growth and oil quality. Directly impacts yield and flavor profile of extra virgin olive oil.
Zoning Compliance Local agricultural zoning must permit both grove cultivation and processing facilities. Prevents operational shutdowns due to legal conflicts.
Water Rights & Environmental Permits Legal access to water and compliance with environmental regulations, crucial in drought-affected areas. Ensures sustainable water use and regulatory compliance.
Business & Food Processing Licenses State and county permits, including food safety licenses like California’s PFR. Mandatory for legal operation and market entry.
Organic Certification (Optional) Certification process to market olive oil as organic. Adds market value and appeals to health-conscious consumers.
Accessibility for Equipment Road access and space for harvest and delivery vehicles. Facilitates efficient harvest and distribution logistics.


KPI 4: Design and Set Up Your Boutique Olive Oil Production Facility


How do you ensure your boutique olive oil production business delivers exceptional quality from grove to bottle? Designing and setting up your production facility is a critical step that directly influences product quality, operational efficiency, and compliance with industry standards. Neglecting this phase can lead to costly inefficiencies and compromised olive oil purity, which are difficult to reverse.

To execute this step effectively, focus on planning an optimal grove layout, investing in modern milling and bottling equipment, and establishing rigorous quality control systems. Attention to storage conditions and packaging compliance will safeguard your oil’s premium status and brand reputation.

Facility Design and Equipment Setup

Planning your grove layout with a density of 200–300 trees per acre maximizes yield while maintaining tree health, which is vital for small scale olive oil production. Incorporating state-of-the-art milling equipment ensures efficient extraction of extra virgin olive oil with minimal oxidation and contamination.

Design your storage with temperature control between 57°F and 70°F and low light exposure to preserve oil freshness. Packaging stations must comply with FDA and California regulations to maintain food safety and accurate labeling, enhancing your brand’s credibility.

Breaking Down the Step


  • Plan grove layout for optimal tree density of 200–300 trees per acre, balancing production and quality.
  • Invest in modern milling and bottling equipment designed for artisanal olive oil making to ensure high-quality extraction and packaging.
  • Set up storage facilities with strict temperature and light controls to preserve oil quality and extend shelf life.
  • Implement quality control systems including lab testing for acidity (below 0.8% for extra virgin), polyphenols, and contaminants to guarantee purity.
  • Develop waste management plans to recycle byproducts into compost or animal feed, supporting sustainable practices.
  • Install security and monitoring systems to protect your grove and inventory from theft and environmental risks.
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Essential Elements of Boutique Olive Oil Facility Setup


Facility Element Key Considerations Benchmarks/Standards
Grove Layout Tree density, irrigation access, soil quality 200–300 trees/acre typical for boutique operations
Milling Equipment Cold-press extraction, stainless steel machinery, throughput capacity Maintain oil temperature below 80°F during pressing
Storage Conditions Temperature control, light protection, airtight containers 57–70°F, dark environment to prevent oxidation
Packaging & Labeling Compliance with FDA, California food laws, branding Accurate nutritional info, batch traceability
Quality Control Lab testing for acidity, polyphenols, contaminants Acidity ≤0.8% for extra virgin classification
Waste Management Byproduct recycling, environmental compliance Composting, animal feed utilization
Security Systems Surveillance, access control, inventory monitoring 24/7 monitoring recommended for crop protection


KPI 5: Hire and Train Your Team


How do you ensure your boutique olive oil production business thrives with a skilled and motivated workforce? Building a team with the right expertise and training is critical to maintaining consistent quality and operational efficiency. Without this foundation, you risk production delays, quality issues, and missed market opportunities that can derail your brand’s reputation.

To execute this step effectively, focus on identifying essential roles like grove management and quality assurance, then recruit candidates with relevant experience. Implement comprehensive training programs that cover sustainable farming, food safety, and customer engagement to align your team with your artisanal olive oil making standards and brand values.

Assemble and Educate Your Workforce

Hiring for boutique olive oil production involves selecting skilled individuals for key roles such as grove manager, harvest crew, mill operator, quality assurance, and sales/marketing. Each role plays a vital part in ensuring smooth operations from olive grove management to delivering premium extra virgin olive oil.

Training should emphasize sustainable farming techniques, safe equipment handling, and food safety protocols, which are essential for maintaining organic olive oil production standards. Additionally, educating your team on brand storytelling and customer service enhances direct-to-consumer (DTC) sales and agritourism experiences, boosting your market presence.

Breaking Down the Step


  • Identify key roles: grove manager, harvest crew, mill operator, quality assurance, and sales/marketing
  • Recruit workers with agricultural or food processing experience to ensure expertise
  • Provide training on sustainable farming, safe equipment operation, and food safety protocols
  • Develop a seasonal labor plan to manage peak harvest and bottling periods efficiently
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Team Development and Performance Management


Key Activity Description
Establish Clear Job Descriptions Define responsibilities and expectations for each role to streamline operations and accountability.
Set Performance Metrics Implement measurable goals related to quality control, efficiency, and customer satisfaction.
Ongoing Education Regularly update staff on quality standards, regulatory compliance, and new olive oil pressing techniques.
Customer Service Training Equip sales and marketing teams with brand storytelling skills to enhance DTC and agritourism engagement.


KPI 6: Launch Marketing and Promotional Campaigns


How do you ensure your boutique olive oil production business captures attention in a crowded market? Launch marketing and promotional campaigns are critical to establishing your brand presence, attracting early customers, and setting the foundation for sustainable growth. Without a strategic marketing launch, even the highest quality artisanal olive oil can remain unnoticed, limiting your business’s long-term success.

Executing this step effectively means combining digital tools with community engagement to tell the story behind your product. From building a professional e-commerce website to organizing local events and partnerships, your goal is to create authentic connections and generate buzz that drives sales and loyalty.

Build Brand Awareness and Drive Sales

Launching marketing campaigns for boutique olive oil production focuses on creating visibility and trust. Key processes include developing a user-friendly website with e-commerce capabilities, leveraging social media to share behind-the-scenes content, and organizing engaging local events such as tastings and farm tours. These initiatives establish your brand’s authenticity and appeal to discerning consumers who value quality and traceability.

Partnering with local retailers and specialty shops expands your market reach, while PR campaigns highlight your awards and sustainability efforts. Offering pre-orders or subscriptions generates early revenue and customer commitment. Collecting testimonials and media coverage further builds credibility and encourages repeat business.

Breaking Down the Step


  • Build a professional website featuring detailed product info and secure e-commerce options.
  • Establish a social media presence, sharing authentic content from olive groves to bottling.
  • Organize launch events like tastings, farm tours, and collaborations with local chefs.
  • Partner with local retailers, farmers’ markets, and specialty food shops to widen distribution.
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Key Marketing Metrics for Boutique Olive Oil Launch


Metric Description Target/Benchmark
Website Conversion Rate Percentage of visitors who make a purchase or sign up for subscriptions. 2-5% is typical for e-commerce food products.
Social Media Engagement Likes, shares, comments on posts showcasing your olive oil production story. 3-6% engagement rate indicates strong audience connection.
Event Attendance Number of participants in tastings, tours, and launch events. 50-100 attendees per event builds local buzz.
Pre-Order/Subscribers Early customers committing to purchase or subscribe before official launch. 10-20% of initial production volume secured pre-launch is ideal.
Media Mentions & Reviews Number of press features, awards, or positive testimonials published. 5-10 quality mentions within first 6 months boosts credibility.


KPI 7: Open and Manage Daily Operations


How do you ensure your boutique olive oil production runs smoothly every single day? Managing daily operations is the backbone of your business’s success, directly impacting product quality, customer satisfaction, and profitability. Without efficient oversight, issues like inventory shortages, quality lapses, or delayed order fulfillment can quickly erode your brand’s reputation and margins.

To master daily operations, you need a hands-on approach that balances production flow, quality control, and customer interaction. Implementing robust scheduling, inventory management, and performance tracking systems will keep your artisanal olive oil making on track and scalable. This proactive management helps you identify bottlenecks and continuously improve processes for long-term growth.

Daily Operations Management

Running your boutique olive oil production involves coordinating harvest, milling, bottling, and packaging with precision to maintain premium quality. Overseeing these processes ensures your small scale olive oil production meets customer expectations and regulatory standards. Efficient inventory tracking and order fulfillment are critical to avoid stockouts or overproduction, which can tie up cash flow.

Quality assurance through lab testing and batch traceability safeguards your brand’s reputation for purity and flavor. Additionally, managing customer service—handling inquiries, reviews, and returns—builds trust and loyalty. Continuous workflow assessment helps reduce costs and boost product consistency, setting the stage for expanding acreage or introducing new olive oil packaging ideas and products.

Breaking Down the Step


  • Schedule and oversee harvest, milling, bottling, and packaging processes to maintain smooth production flow and product quality.
  • Monitor inventory levels closely and manage order fulfillment efficiently to balance supply with demand.
  • Use accounting software to track sales, expenses, and key performance indicators such as yield per olive grove acre and cost per bottle.
  • Maintain quality assurance with regular lab testing and batch traceability to ensure extra virgin olive oil standards and purity.
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Key Operational Metrics for Boutique Olive Oil Production


Metric Description Target / Benchmark
Harvest-to-Milling Turnaround Time Time from olive harvest to pressing to preserve freshness and flavor Within 24 hours is ideal for premium quality
Inventory Turnover Ratio Frequency of inventory replacement to minimize storage costs and maintain freshness 4-6 times per year recommended for boutique producers
Batch Traceability Rate Percentage of production batches fully traceable through lab testing and records 100% for regulatory compliance and brand trust
Customer Response Time Average time to respond to inquiries and resolve complaints Within 24 hours to maintain customer satisfaction
Operational Cost per Bottle Total production and fulfillment cost divided by number of bottles produced Varies by scale; aim for cost reduction of 5-10% annually through process improvements