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Joined: Sep 2006
Posts: 43,088
Legend
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Legend
Joined: Sep 2006
Posts: 43,088 |
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Daman I'm not saying your guy did the right thing or anything but I've worked for companies before that had tremendous perks like big bonuses and trips etc... then times get tough and those things go away and people became upset because they had come to feel entitled... they weren't bonuses anymore, they were a "normal" part of their compensation...
Plus, it is fiscally impossible to run a bigger company with the same perks as a smaller company
While I was there, times never got tough. we were solid with growing production each and every year.
the thing was, he equated adding to staff with adding to revenue at the same consistent level. that didn't happen. the production per staff person went down. Not because the original guys didn't produce.. we did, it was because the new guys didn't produce quick enough. So he pulled the trigger of firing them very quickly not allowing them to develop their own book of business as he did with the original crew.
Had he added slowly, allowed a person to grow into the production level, then added another.. that probably would have worked out pretty good.
but he added like 10 guys in a matter of a month.. costs skyrocketed and production didn't keep pace. Turnover was insane,. moral dropped, profits bottomed out. Eventually, the original crew all left (me first) then he weened it down to about 4 people, retrained them again and again, finally got them producing then he was fine.
But later, he did the same thing,, a little more cautiously I'll admit, but the resutls were the same,, just not as bad so he keep right on truckin.
Until about 2008.. lots of agencies went under or shrunk to almost nothing.
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.”
Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe."
Damanshot
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Joined: Sep 2006
Posts: 15,015
Legend
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Legend
Joined: Sep 2006
Posts: 15,015 |
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Google makes phones now (Motorola Mobility acquisition) along with their Nexus tablets. They didn't start in manufacturing, so I can see where you are coming from though.
And while software is not a "physical" product, it is still a product that is created and purchased or has some other channel of revenue generation (advertising, etc).
Correct, my point was just that those companies (at least for the most part) don't make a physical products and therefore don't have the same cost of goods, storage, transportation, etc fees that typical manufacturing companies have.
We don't have to agree with each other, to respect each others opinion.
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Joined: Sep 2006
Posts: 4,480
Hall of Famer
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Hall of Famer
Joined: Sep 2006
Posts: 4,480 |
Absolutely. My accountant, every year, says "that is all of the expenses you have?" There isn't a lot of cost for running a software company as opposed to a manufacturing company or a retailer/supplier that has to have inventory! Inventory, after employees, is the biggest cost by far. A lot of technology companies don't need to worry about that at all.
#gmstrong
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Joined: Nov 2006
Posts: 5,521
Hall of Famer
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Hall of Famer
Joined: Nov 2006
Posts: 5,521 |
Quote:
Correct, my point was just that those companies (at least for the most part) don't make a physical products and therefore don't have the same cost of goods, storage, transportation, etc fees that typical manufacturing companies have.
On the other hand, most manufacturing companies don't have hundreds of millions of dollars in secure data centers and other such infrastructure.
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Joined: Feb 2007
Posts: 13,358
Legend
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Legend
Joined: Feb 2007
Posts: 13,358 |
My manufacturing company has more than one tool that cost $45 million two years ago.
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Joined: Nov 2006
Posts: 5,521
Hall of Famer
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Hall of Famer
Joined: Nov 2006
Posts: 5,521 |
That's still a far cry from $5 billion or so.
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Joined: Sep 2006
Posts: 40,399
Legend
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Legend
Joined: Sep 2006
Posts: 40,399 |
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My manufacturing company has more than one tool that cost $45 million two years ago.
There are some real tools at my company too but none of them make that much. 
yebat' Putin
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Joined: Sep 2006
Posts: 40,399
Legend
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Legend
Joined: Sep 2006
Posts: 40,399 |
Quote:
There isn't a lot of cost for running a software company as opposed to a manufacturing company or a retailer/supplier that has to have inventory!
Correct, the biggest expense to most service companies is its employees... i.e. the salaries and overhead of the people hired to think and create and manage....
Sadly a lot of blue collar folks don't view that as "real work"... 
yebat' Putin
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DawgTalkers.net
Forums DawgTalk Everything Else... Company pays it's employees to go
on vacation
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