In our latest podcast episode, the owners talk about why they charge what they charge, how they manage employee reviews, and the challenges of outsourcing manufacturing to China.
Big objection to the layoff article. It’s completely uninformed and typical of our press. The largest expense for every company is labor by far. For my company it’s 60-70% of all expenses. Then there’s 10-20% in other non-labor expenses and profit. There isn’t anywhere else to cut when you lose business that moves the needle. You can’t cut snacks in the break room to get to profitability. Move to a cheaper data center? What? First that’s most likely a small expense and you have a contract so you can’t cut it. If you ask everyone to take cuts, then you lose your best people who have options to go to other places. Silly article.
Big objection to the layoff article. It’s completely uninformed and typical of our press. The largest expense for every company is labor by far. For my company it’s 60-70% of all expenses. Then there’s 10-20% in other non-labor expenses and profit. There isn’t anywhere else to cut when you lose business that moves the needle. You can’t cut snacks in the break room to get to profitability. Move to a cheaper data center? What? First that’s most likely a small expense and you have a contract so you can’t cut it. If you ask everyone to take cuts, then you lose your best people who have options to go to other places. Silly article.