also, curious where the cost of sales reduction will come from.
has insurance, energy, ingredients, labor costs (I hear $9 on the horizon maybe) or anything else gone down?
Where should the pizza biz trim the 2% fat?
2% is VERY easy..I have a little experience in that industry so that is why I used that example. I do know the cost of a pizza oven and lots of other costs too..lol
2% can be achieved easy by running tight operations..keeping waste down, portion control, proper ordering and watching labor accurately.
If a business owner grossing 1M is netting 150k then for sure they are watching costs closely.
The difference between a business grossing 1M and either break even net income or 150k is all about the above.
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Quote Originally Posted by lordspoint:
also, curious where the cost of sales reduction will come from.
has insurance, energy, ingredients, labor costs (I hear $9 on the horizon maybe) or anything else gone down?
Where should the pizza biz trim the 2% fat?
2% is VERY easy..I have a little experience in that industry so that is why I used that example. I do know the cost of a pizza oven and lots of other costs too..lol
2% can be achieved easy by running tight operations..keeping waste down, portion control, proper ordering and watching labor accurately.
If a business owner grossing 1M is netting 150k then for sure they are watching costs closely.
The difference between a business grossing 1M and either break even net income or 150k is all about the above.
A 2% cut in labor to Apple would equate to a savings of 3.1 B a year while a 10% cut in income taxes would save 1.4 B
Apple does not spend $122 billion in labor.
Your math is off. By a lot.
Check their income statement..it is likely you are right regarding labor since they pay 8 bucks a day for China labor..they have multiple cost centers and products so it would be tough to determine exactly what direct labor is. Its fine to also include non labor, it is all controllable to the corporation. Any item relative to Cost of Sales is applicable.
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Quote Originally Posted by 14daroad:
A 2% cut in labor to Apple would equate to a savings of 3.1 B a year while a 10% cut in income taxes would save 1.4 B
Apple does not spend $122 billion in labor.
Your math is off. By a lot.
Check their income statement..it is likely you are right regarding labor since they pay 8 bucks a day for China labor..they have multiple cost centers and products so it would be tough to determine exactly what direct labor is. Its fine to also include non labor, it is all controllable to the corporation. Any item relative to Cost of Sales is applicable.
2% is VERY easy..I have a little experience in that industry so that is why I used that example. I do know the cost of a pizza oven and lots of other costs too..lol
2% can be achieved easy by running tight operations..keeping waste down, portion control, proper ordering and watching labor accurately.
If a business owner grossing 1M is netting 150k then for sure they are watching costs closely.
The difference between a business grossing 1M and either break even net income or 150k is all about the above.
You make it sounds oh so easy on paper! Do you actually own a pizza place or did you work in once while maybe putting yourself through school or something?
By the way, your initial 2% is not good enough.....your costs have went up by 4% due to factors beyond your control (like fed taxes) squeeze another 2%.
Now squeeze another 2% and another and another.......let me know when you have a lean ship like you should have had in the 1st place. If you can EASILY find 2% then you were doing a crappy job of running your business from the get go
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Quote Originally Posted by wallstreetcappers:
2% is VERY easy..I have a little experience in that industry so that is why I used that example. I do know the cost of a pizza oven and lots of other costs too..lol
2% can be achieved easy by running tight operations..keeping waste down, portion control, proper ordering and watching labor accurately.
If a business owner grossing 1M is netting 150k then for sure they are watching costs closely.
The difference between a business grossing 1M and either break even net income or 150k is all about the above.
You make it sounds oh so easy on paper! Do you actually own a pizza place or did you work in once while maybe putting yourself through school or something?
By the way, your initial 2% is not good enough.....your costs have went up by 4% due to factors beyond your control (like fed taxes) squeeze another 2%.
Now squeeze another 2% and another and another.......let me know when you have a lean ship like you should have had in the 1st place. If you can EASILY find 2% then you were doing a crappy job of running your business from the get go
Check their income statement..it is likely you are right regarding labor since they pay 8 bucks a day for China labor..they have multiple cost centers and products so it would be tough to determine exactly what direct labor is. Its fine to also include non labor, it is all controllable to the corporation. Any item relative to Cost of Sales is applicable.
wait a sec? so the #'s you purported arent factual? WTF's up with that?
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Quote Originally Posted by wallstreetcappers:
Check their income statement..it is likely you are right regarding labor since they pay 8 bucks a day for China labor..they have multiple cost centers and products so it would be tough to determine exactly what direct labor is. Its fine to also include non labor, it is all controllable to the corporation. Any item relative to Cost of Sales is applicable.
wait a sec? so the #'s you purported arent factual? WTF's up with that?
You make it sounds oh so easy on paper! Do you actually own a pizza place or did you work in once while maybe putting yourself through school or something?
By the way, your initial 2% is not good enough.....your costs have went up by 4% due to factors beyond your control (like fed taxes) squeeze another 2%.
Now squeeze another 2% and another and another.......let me know when you have a lean ship like you should have had in the 1st place. If you can EASILY find 2% then you were doing a crappy job of running your business from the get go
Ive worn many hats.
You are looking only at cost increases..companies raise prices and increase efficiencies all the time. Costs go up, they go down, there will always be a way to offset cost increases for a creative business owner.
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Quote Originally Posted by lordspoint:
You make it sounds oh so easy on paper! Do you actually own a pizza place or did you work in once while maybe putting yourself through school or something?
By the way, your initial 2% is not good enough.....your costs have went up by 4% due to factors beyond your control (like fed taxes) squeeze another 2%.
Now squeeze another 2% and another and another.......let me know when you have a lean ship like you should have had in the 1st place. If you can EASILY find 2% then you were doing a crappy job of running your business from the get go
Ive worn many hats.
You are looking only at cost increases..companies raise prices and increase efficiencies all the time. Costs go up, they go down, there will always be a way to offset cost increases for a creative business owner.
Wave the magic wand eh? Simply raise prices eh? Pull efficiencies outta their butts eh?
You make it sound so very simple. I think I should hire you to run my company for awhile. I get the feeling that you have many hats on the looks good on paper side of the equation but I question your time spent on the true appication side.
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Wave the magic wand eh? Simply raise prices eh? Pull efficiencies outta their butts eh?
You make it sound so very simple. I think I should hire you to run my company for awhile. I get the feeling that you have many hats on the looks good on paper side of the equation but I question your time spent on the true appication side.
I could step into most service based shops and make them better. Its a minority that run efficient operations. I can spend 15 minutes observing and find ways to increase efficiencies and sales/profits. I get the itch now and then to jump back in the fray, maybe sometime in the future. And yes to someone with the skill set it is easy to spot and fun to see operations and profits increase.
I stand by what I said, there are almost always ways to offset costs.
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Lords,
I could step into most service based shops and make them better. Its a minority that run efficient operations. I can spend 15 minutes observing and find ways to increase efficiencies and sales/profits. I get the itch now and then to jump back in the fray, maybe sometime in the future. And yes to someone with the skill set it is easy to spot and fun to see operations and profits increase.
I stand by what I said, there are almost always ways to offset costs.
Implement a bunch of great ideas that the shop floor doesnt buy into but then bc company X paid you a bunch of money they will force the ideas down everyones throats and in the end you have created pissed off employees, reduced moral and less productivity.
Seen it time and time again.
Remember for every action, there is an equal and opposite reaction. And some of those are unintended
You also most ALWAYS remember that you are dealing with people not machines...................................
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Ahhh a consultant.........................
Implement a bunch of great ideas that the shop floor doesnt buy into but then bc company X paid you a bunch of money they will force the ideas down everyones throats and in the end you have created pissed off employees, reduced moral and less productivity.
Seen it time and time again.
Remember for every action, there is an equal and opposite reaction. And some of those are unintended
You also most ALWAYS remember that you are dealing with people not machines...................................
Implement a bunch of great ideas that the shop floor doesnt buy into but then bc company X paid you a bunch of money they will force the ideas down everyones throats and in the end you have created pissed off employees, reduced moral and less productivity.
Seen it time and time again.
Remember for every action, there is an equal and opposite reaction. And some of those are unintended
You also most ALWAYS remember that you are dealing with people not machines...................................
Consultant NO, perceptive owner/manager yes.
And if you are implementing ideas that employees are considering it "forcing down the employees throat" then you are failing at establishing proper buy-in and helping the workers understand that an efficient, profitable work place means more money for all involved and more opportunity for advancement.
You are looking at everything from an extremely negative vantage point..why is that exactly?
0
Quote Originally Posted by lordspoint:
Ahhh a consultant.........................
Implement a bunch of great ideas that the shop floor doesnt buy into but then bc company X paid you a bunch of money they will force the ideas down everyones throats and in the end you have created pissed off employees, reduced moral and less productivity.
Seen it time and time again.
Remember for every action, there is an equal and opposite reaction. And some of those are unintended
You also most ALWAYS remember that you are dealing with people not machines...................................
Consultant NO, perceptive owner/manager yes.
And if you are implementing ideas that employees are considering it "forcing down the employees throat" then you are failing at establishing proper buy-in and helping the workers understand that an efficient, profitable work place means more money for all involved and more opportunity for advancement.
You are looking at everything from an extremely negative vantage point..why is that exactly?
That and I enjoy debating with you and sometimes I give you sh*t bc I know you are quite intelligent and always have a fairly decent reply - even if I dont aways agree....which is how it should be if there is to be any debate.
I like that you mention buy in.....its certianly key
Carry on my good man.
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just playing devils advocate today :)
That and I enjoy debating with you and sometimes I give you sh*t bc I know you are quite intelligent and always have a fairly decent reply - even if I dont aways agree....which is how it should be if there is to be any debate.
I like that you mention buy in.....its certianly key
Also, you are replying with very basic and simple solutions about an issue that is a bit more complex than you are making them sound. But I realize its to keep things simple on here as its hard to get waaay into too many detailed specifics and I understand.
I sometimes confuse you with others who don;t have a clue and and just beat the drum of a party....
Anyways, all is good.
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Also, you are replying with very basic and simple solutions about an issue that is a bit more complex than you are making them sound. But I realize its to keep things simple on here as its hard to get waaay into too many detailed specifics and I understand.
I sometimes confuse you with others who don;t have a clue and and just beat the drum of a party....
Also, you are replying with very basic and simple solutions about an issue that is a bit more complex than you are making them sound. But I realize its to keep things simple on here as its hard to get waaay into too many detailed specifics and I understand.
I sometimes confuse you with others who don;t have a clue and and just beat the drum of a party....
Anyways, all is good.
I think the principals behind a successful business are simple..now the types of business vary and the complexities to executing vary but the principals behind running a solid business are pretty simple.
What I've found is when I am too involved in tasks which are not focused on moving the business forward, the complexities of execution get greater and greater..
Translation you get stuck in the weeds and arent able to move forward because the focus is on things which are not the most valuable use of your time and assets.
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Quote Originally Posted by lordspoint:
Also, you are replying with very basic and simple solutions about an issue that is a bit more complex than you are making them sound. But I realize its to keep things simple on here as its hard to get waaay into too many detailed specifics and I understand.
I sometimes confuse you with others who don;t have a clue and and just beat the drum of a party....
Anyways, all is good.
I think the principals behind a successful business are simple..now the types of business vary and the complexities to executing vary but the principals behind running a solid business are pretty simple.
What I've found is when I am too involved in tasks which are not focused on moving the business forward, the complexities of execution get greater and greater..
Translation you get stuck in the weeds and arent able to move forward because the focus is on things which are not the most valuable use of your time and assets.
I agree the basics behind running a biz are fairly straight forward and yes it's easy for some to be up to their ass and alligators only to remember what they wanted to do was drain the swamp. If you're a one man biz it's one thing but if you have employees then you need to delegate responsibility and some authority to people make decisions.
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I agree the basics behind running a biz are fairly straight forward and yes it's easy for some to be up to their ass and alligators only to remember what they wanted to do was drain the swamp. If you're a one man biz it's one thing but if you have employees then you need to delegate responsibility and some authority to people make decisions.
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