Let's talk politics.

[Pirate]

Is the point made that it is stupid to cut costs?

That depends on how you plan to do the cutting.

[corageon]

[Party]

Being in the retail business the cost of goods are pretty the same to my competitors. Location is important, as is service and pricing, but all things being equal, the only way to cut costs is to cut employees. Ten years ago I had a manager and an asst manager. Six years ago I had a manager. Four years ago I had an Asst Manager. Now, my wife and I are all of the above. Soon we'll be cutting staff or spouses.

[corageon]

CUSP - I bet you can't wait to weigh in on the above video there.

[namsokiek]

Is the point made that it is stupid to cut costs?

Its a circular argument without a beginning or end;

- Businesses are in business to provide something to their customers
- Customers want the highest value:cost ratio for everything they purchase; i.e. high value, low cost
- Theoretically the customer is always right; while an arguable assertion, customers' spending reflects their priorities and if they don't spend on your goods; by default you are wrong
- Customers' desire for low costs compels business to cut costs while maintaining the value the customers desire; this requires cutting out the cost drivers that do not increase value to the customers

Take clothes; unless you are talking about work clothes, few people buy clothes to last more than on year; some not even that long. Think about kids clothes; they grow quickly, fashion changes quickly, you only need "nice" clothes that will last the school year; 'cause you'll need to buy more next year (regardless of the fact they could be worn for three years).

So if you're assigned to buying a new wardrobe per child per year, why buy clothes that will last 2 years when the child can't wear them the next year? The answer is: we don't. We don't value children's clothes that last two years so we don't spend more for them; we buy cheaper clothes, take the money, and buy something else.

The business making durable children's clothes cannot sell the clothes for the cost of materials; let alone labor, rent, insurance, taxes, and profit; so they either close shop, fire all their employees, and go into another line of work or they adjust their product to meet the demand; probably outsource their manufacturing and buy cheaper materials to provide only what the customer values.

So, it is only stupid to cut costs if the cost driver you are cutting provides the value the client desires. It is equally stupid to entertain qualities the increase costs without increasing the customers' value.

[Pegasus]

I would suggest that aussies may not want to pay the cost for food that would allow other aussies to do the work. I know it is that way in the US. Even if we could find Americans willing to work as hard as it takes to work in the field, the farmer couldn't find buyers willing to compensate for his costs. Every conversation that I've read that complains about cheap labor is totally void of numeracy.

Everyone should consider this question the next time they walk into the store, "Am I willing to pay 3x for this head of lettuce? Am I willing to pay 5x more for these clothes?" We all know the answer; "No!" You have to do this to everything you see in the store.

And if you're not willing to pay the price, who is? ---- very few; not enough to keep the company viable.

Overseas workers has resulted in higher profit margins more than lower prices for food products in the Australian context .

[m3232]

Steohen Hawking has talked about what he thinks will be the demise of our planet. Artificial intelligence, Human aggresion and aliens come before climate change.

This is true we are all fucked when we create a super intelligent indestructible warrior Army.
Type in Android on google and all you see is Samsung android phones.
Samsung has some freaky intense artificial intelligence android shit going on.
Due to the Android operating I system its virtually impossible to google Android technology in the old sense
(As in robots who will suck out our brains an drink them as an artificial imagination smoothie

[Tamora]

So much for open borders in the EU! It doesn't work!

[CUSP82]

Did you think it would?

[Tamora]

Did you think it would?

Never Cusp...it's a silly Utopian ideal made by politicians that are out of touch with reality.