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Marilee J. Layman

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04:51 pm: Bad Business Decisions
Circuit City is getting rid of "overpaid" workers" -- workers making about $11-12/hour. Not because they're bad workers, no, they're probably the best employees they have. They're getting rid of them so the store can hire cheaper, less-skilled new workers. This is not the way to make money.

Giant grocery store is cutting back on fish shop employees in 50 of their stores. They'll be leaving packaged fish in refrigerated cases. A lot of people don't want to buy fish from cases -- they want to be able to talk to the employee about it. Some stores are looking for too much profit.

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From:dsgood
Date:March 30th, 2007 09:16 pm (UTC)
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The fired workers can reapply for their old jobs -- at lower pay, of course.

What a wonderful way to build morale!
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From:green_knight
Date:March 30th, 2007 10:14 pm (UTC)
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Not 'too much profit' but equating outgoings with loss.

If you pay your employees badly, they will be unmotivated and feel they don't owe you anything. For instance, punctuality or care. If you neglect the 'service' side of business and merely try to compete on lowest price, you will attract the people for whom price is the main motivator. Those people will usually be only too happy to buy loss-leaders, shy away from the things with a larger margin, know no loyalty and switch as soon as someone else offers a lower price, and, and, and - in short, they're the worst customers to have in many respects.

It seems to me as if many 'businesses' have no idea of how to conduct business with a view to the long term. After all, most companies would show the most short-term profit if they shut down operations and sold all their assets. The problem with that approach is that you no longer have anything _creating_ wealth...
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