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Re: see above- almost right


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Posted by Germ on October 18, 2008 at 05:08:21 from (205.188.117.74):

In Reply to: see above- almost right posted by jose bagge on October 17, 2008 at 19:47:31:

DickL and I know both own businesses and understand how things work. If you can cut labor without affecting sales and service, then you have inefficient labor.

Labor is more in line with volume. If you have 100 widgets sold this week and need 100 employees working a full week to deliver the widgets, you can not cut labor without affecting sales (you have to deliver 100 the widgets). If you can produce those 100 widgets with 80 employees, you have 20 dead beats on your payroll that need to find more suitable employement.

Same goes with reduced sales, if sales are dropping, either the sales force needs to work harder and make more sales at a profit, or the work force needs to be reduced to the appropriate level.

From what I recall, you have auto repair shops. I would toss out an educated guess that your volume is dropping during this slow down.


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