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Cutting costs is a way to increase profits
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Jan 29, 2019 03:17
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Captain Billy Pissboy posted:Cutting costs is a way to increase profits Cutting costs is also a way to decrease profits. For instance laying off salespeople will cut costs and highly likely also cut profit (assuming you're actually selling something someone wants). Same for decreasing inventory etc. Then again most businesses are selling something no-one actually wants or needs so 
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Jan 29, 2019 03:22
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yes, and it also has other effects. spending $10M to make $1M profit is different from spending $1M to make $1M profit. cost base matters.
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Jan 29, 2019 03:23
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"cutting costs" is good inasmuch as it reminds the worker that they only exist at the beneficence of the Job Creator and helps to prevent the worker from getting uppity and thinking the deserve a tiny sliver of the value they create
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Jan 29, 2019 03:31
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Subjunctive posted:yes, and it also has other effects. spending $10M to make $1M profit is different from spending $1M to make $1M profit. cost base matters. income is not the same as profit 
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Jan 29, 2019 03:37
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Tetracube posted:income is not the same as profit ...of course not? I use “make” to mean profit, like “I made $50 on that deal”.
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Jan 29, 2019 03:38
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Jerry Cotton posted:Cutting costs is also a way to decrease profits. For instance laying off salespeople will cut costs and highly likely also cut profit (assuming you're actually selling something someone wants). Same for decreasing inventory etc. Huh? If you lay off 20% of your sales staff, you get the remaining 80% will work twice as hard out of fear of losing their jobs. Layoffs actually increase sales. Less inventory means lower costs which mean that you can lower the price on your items. This means that you can outbid competitors on contracts and embed yourself into customer's businesses as a "preferred provider" and get guaranteed sales even as your service quality and delivery times go to poo poo. I'll take my consulting fee now.
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Jan 29, 2019 03:41
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Jerry Cotton posted:Cutting costs is also a way to decrease profits. For instance laying off salespeople will cut costs and highly likely also cut profit (assuming you're actually selling something someone wants). Same for decreasing inventory etc. like, you're right, but CEOs are perfect genius boys who cannot be wrong so when they want a bigger yacht than their hated neighbor they'll cut costs to the detriment of their own company they lose millions, have to get a smaller yacht, and get shuffled over to another board of directors for a lifetime of being bitter that they're stuck in the 2%
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Jan 29, 2019 03:47
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Peanut Butler posted:like, you're right, but CEOs are perfect genius boys who cannot be wrong so when they want a bigger yacht than their hated neighbor they'll cut costs to the detriment of their own company actually, the opposite of this is true
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Jan 29, 2019 04:15
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half of the private equity fund strats are slightly more complicated versions of "buy a company and burn it down for the insurance money"
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Jan 29, 2019 04:16
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Tastykake posted:half of the private equity fund strats are slightly more complicated versions of "buy a company and burn it down for the insurance money" its usually a debt clearance exercise ala toys r us
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Jan 29, 2019 04:20
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as i said, slightly more complicated
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Jan 29, 2019 04:37
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Chomp8645 posted:"Are profits up? What about costs down? I dunno, guess I'll ask my employees" the one realistic part of that picture
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Jan 29, 2019 04:55
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Plus companies are only interested in short term profits. Layoffs may bite you in the rear end eventually but as long as the next quarterly report looks good who cares. Even if the company starts going under just do what's happening to Sears. Borrow money from a finance firm you own with company property as collateral, set your firm as the primary debtor, then let the company crash and sell the remains.
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Jan 29, 2019 05:00
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Tastykake posted:actually, the opposite of this is true well I mean if they gently caress up reeeaaaally badly they might have to go from a finance CEO to the executive board of Casey's General Store or something, seething that they had to sell the smallest of their six houses
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Jan 29, 2019 05:12
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Cutting costs is easy, just get rid of the employees being paid the most to do the least essential work. Thankfully, they all seem to have tagged themselves by putting a 'C' at the beginning of their title.
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Jan 29, 2019 09:28
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Tetracube posted:
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Jan 29, 2019 09:37
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just lol if you would ever go to a dentist the only time I went in my adult life they made up something called literally "deep pockets" that they wanted at least $2k to fix
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Jan 29, 2019 09:51
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Dead Beef posted:I don't understand "The suggestion box is empty!" Because everything is literally the very best it could be, so there is no reason to suggest anything!
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Jan 29, 2019 13:32
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Jerry Cotton posted:A real business doesn't give a poo poo about costs as long as profits are up.
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Jan 29, 2019 13:45
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Jan 29, 2019 13:53
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comedyblissoption posted:business owners are in an adversarial position against the wages of the workers Business owners are an anathema to good business 
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Jan 29, 2019 13:56
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AnoHito posted:Cutting costs is easy, just get rid of the employees being paid the most to do the least essential work. everyone in management is expendable
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Jan 29, 2019 14:03
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Serf posted:everyone in management is expendable ehh, sometimes it's good to have someone look at the big picture and tell you what's up incidentally, it's best left to outsourced consultation people, because they'll be less biased 
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Jan 29, 2019 14:14
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outsource you are management fire you are boss
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Jan 29, 2019 14:15
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Truga posted:ehh, sometimes it's good to have someone look at the big picture and tell you what's up oh we need managers, they just should be elected from among the workers
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Jan 29, 2019 14:22
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Serf posted:oh we need managers, they just should be elected from among the workers Unelected management is indistinguishable from aristocracy.
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Jan 29, 2019 14:41
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Jerry Cotton posted:Business owners are an anathema to good business I keep going back to matt bruenig's comment that most small business owners are just capitalist cosplayers
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Jan 29, 2019 14:55
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Dead Beef posted:all the luxury of a 90s-era mall, in your yacht!  For those of us in Iowa, that's a aughts era mall.
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Jan 29, 2019 15:09
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go for a stroll posted:just lol if you would ever go to a dentist There's an American hygienist at my local private dentist and she cleaned out my deep pockets for £70 It was only £20 more than a standard clean but if she could be making $2k for it why is she in England
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Jan 29, 2019 15:14
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https://twitter.com/Josmar_Trujillo/status/1089980633047359488
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Jan 29, 2019 15:35
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Subjunctive posted:yes, and it also has other effects. spending $10M to make $1M profit is different from spending $1M to make $1M profit. cost base matters. Don't you literally work for a venture capital firm
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Jan 29, 2019 15:38
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Tastykake posted:actually, the opposite of this is true They get a smaller yacht that fits inside their larger yacht
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Jan 29, 2019 15:39
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That guy needs to be stoned.
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Jan 29, 2019 17:38
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mycomancy posted:That guy needs to be stoned. I'm no genius but isn't 3 days right up on that 72 hour threshold? I guess she probably had a bunch of water with her??? Or???
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Jan 29, 2019 17:42
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This guy would probably be a whiny pansy after three days stuck in an elevator. lol that he doesn't realize when to keep his mouth shut so his lack of empathy doesn't show.
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Jan 29, 2019 17:44
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Raldikuk posted:I'm no genius but isn't 3 days right up on that 72 hour threshold? I guess she probably had a bunch of water with her??? Or??? Stop complaining snowflake! It takes 72 hours to die from thirst, you were only trapped 68! And besides if you hadn't taken a piss on my dime, that'd give you at least 1 if not 2 spare cycles.
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Jan 29, 2019 17:58
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"Let me tell you about how people these days have lost touch with our primal strength, independence and resilience" I say as my rear end butler gently massages my rear end so I can have optimal sitting pleasure in my solid gold throne that my throne butler has just finished polishing
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Jan 29, 2019 18:39
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Lambert posted:This guy would probably be a whiny pansy after three
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Jan 29, 2019 18:48
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| # ? Jun 11, 2024 22:55 |
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guillotine
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Jan 29, 2019 19:11
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