Only problem is when old yella develops diabetes, hip displasia, and heart disease and winds up costing you $8000+ in veterinarian bills.
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https://www.nzherald.co.nz/business/...ectid=12350355 Our resident cat opines.
In a good year AIR's profit was about 8% of sales so you're right, a 2.1% margin is only a quarter of what airlines with their notoriously skinny margins make !
Higher exchange rate will help but it obvious they really did need to push through these reforms as that net margin is wafer thin.
Yeah, that is certainly a bit too tight for comfort. Companies like this must really cringe when minimum wages go up, and in that respect, it's no surprise they've had to do a little culling. No wonder they were keen to let everyone know the doors would remain open during lockdown.
17% of revenue for staff wages and salaries.?
I take it your figures are correct.However,I find that figure well above what I would think it should be.
My best guess would be around 12% at the most.As per Ratkin's post,self service should be able to reduce these wage costs to under 10%.KMart seems to made self service work.
Although you have not quoted occupancy costs I would expect them to be also well under 12%,if fact possibly under 10%.
I would guess their [whs] average sale would be well over $30,which makes me think they have a lot of issues to resolve.
There also appears to be big savings to be made in their logistics,as we already know their online overheads are also too high.
Low margins on very high revenue can be profitable, as the likes of McDonalds and Pak 'n Save have proved.
Staff and logistics to meet varying demand.ie daily, even hourly.
Yes definitely does. Not only do the direct costs increase (salary and wages) but so does freight, wholesale purchase costs etc. It causes an avalanche of increases, and because of the timing of the minimum wage increases, means that some suppliers are increasing their costs multiple times per year on a continues basis since Labour's policy kicked in. Many entry level WHS staff are on the living wage which is currently $22.10. Obviously everyone above that also has their hand out,
The consumer is very unforgiving about these necessary price rises.