You are viewing a single comment's thread.

view the rest of the comments →

5
3

[–] trumpetjock 5 points 3 points (+8|-5) ago  (edited ago)

That doesn't make any sense. If your business can survive you laying off 10 people, want wouldn't you just do that now? Second, your business is really on such a tight margin that you can't offset 2000 a month (see edit) in wages with a small price per unit increase, but you're moving enough product to employ 10 ftes?

Edit -- 2000 a week, not month. My original points still stand.

3
9

[–] yergi 3 points 9 points (+12|-3) ago 

WHOOSH!

He's saying that the business will close.

2
5

[–] dv1155 2 points 5 points (+7|-2) ago 

A 50% increase is way more than $2k. It doesnt seem like you have even a basic grasp of business or economics. A small price increase means a huge decline in sales when your competitors can pay pennies an hour for labor in China.

1
-1

[–] trumpetjock 1 points -1 points (+0|-1) ago  (edited ago)

I don't need an understanding of business or economics... Just basic algebra.

10 people working 40 hours a week at 10/hour totals a payroll of 40 * 10 * 10 = $4000. A 50% increase to that is exactly $2000 a week.

For what it's worth, I actually do have a pretty good understanding of business, seeing as my two sources of income are as a small business owner and an independent contractor. And I do quite well at both.

-- edit: Ah, I see where the confusion lies. I looked back at my original comment and was mixing month/week math. You're right, it is much more than 2000 a month, as indicated in my initial reply... 4x more in fact! My comment and questions still stand. A business moving enough product or service to employ 10 ftes really should have more wiggle room in their budget than $2000 a week. As a business owner, I wouldn't DREAM of hiring a person unless my business model were successful enough that each individual hire made me a very significant profit. It seems like you're in a sector where margins are extremely tiny and production is very labor intensive, which is the exact type of business we want to see exported. Either that, or you're a pretty terrible businessman and have hired way too many people, your process is inefficient, or a million other things that could be wrong.

2
-1

[–] Hand-Banana 2 points -1 points (+1|-2) ago 

I guess your business doesn't scale. You just hired 10 people 1 day and had enough clients to cover it