Posted on 12/01/2012 12:14:56 PM PST by george76
In reality in a competitive marketplace without government enforced fixed pricing you don't really know which dollar of income or expense went where, or from who to who and when.
Management stays in business by cleverly plotting how to get market share. Any management that imagines the only thing keeping it in business is low wages is doomed to end up with nothing but illegal mexicans ~ and on and on and on. There are endless aphorisms concerning the issue and no one thing is the be all end all of how to survive in business.
That is incorrect. Management stays in business by making a PROFIT. Market share is not the same as profit. Any Management that does not recover all of it's costs (including labor costs) will be replaced by the owners or will go out of business.
Management often can not or has very little influence over the cost of the product. They do have control over the cost of the operations, their labor costs and the final price to the customer. When the target market (customers) base their buying decision primarily on price (high volume box stores), the management is targeting a slim margin to make profit. That means every single cost that they can avoid they MUST in order to compete in that market space.
Again, under that condition share is highly important ~ since having no share at all means you done been put outta' business ~ no matter how well you controlled your costs.
Manufacturing economics can be different ~ transportation and communications are even more different ~ and all boloxed up in mindless government meddling.
Everyone prays for profit ~
In retail, if you do not buy product, you have nothing to sell. You can’t make a profit or even recover your costs if you don’t sell something.
Lawyers cost more than your average working stiff.
On the way out the gate one of the cars hits the gate post, and a section of fence falls, and a couple of carpools get raked by the concertina wire.
What to do, what to do?
No, the gub'mnt is a self-insurer so no liability insurance. There are a half dozen people bleeding in the lot ~ they need help ~ who pays?
If you wait around for federal tort claims act actions they'll bleed out long before the case comes to conclusion. If, instead, you rely on workman's comp ~ they can get immediate treatment and be back at work probably next week ~
So, how do you imagine USPS actually handles these situations?
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