Once a company grows to a certain level it's hard (at least physiologically) for them to scale down. I recall that when we ordered up our new Ranger 20 in early '76, from a local dealer doing demo's off the back porch of his floating home, part of the sales agreement was that he could display it in a small shopping mall boat show after it arrived. It was fun to see it displayed there, tilted a bit to allow for limited overhead clearance.
When a business grows to the point that they have far-away dealers and banks charging big $ for flooring, things get both riskier and sometimes more profitable.
Increasing Size of operation can be like a treadmill that keeps increasing its speed all the time...