it is quite expensive to achieve cost cuts
Is it only me who finds this ridiculous?
"Oh yes, we expended $6.8million on cutting costs, it was money well spent in my opinion"
"How much did you save?"
"Oh, about $1.4Million"
Getronics' CEO has opened up on its recent and "very, very embarrassing" winding-up petition from HMRC over non-payment of VAT, claiming it was an unintended by-product of corporate expansionism. As revealed by The Register late last month, the services integrator claimed multiple acquisitions and subsequent restructuring led …
How did it possibly get to this stage? If you don't have the money upfront then you just agree a "time to pay" deal with HMRC and pay in installments and... that's it. We did that at work during the recession when the money set aside for paying the VAT in one lump sum had basically been raided to pay wages and other expenses and we didn't have the money to pay everything for the year in a lump sum. Hence, broken down into a payment plan and everybody moves on with life.
We haven't had HMRC try to wind us up, at least not in any other way than the business owners yearly exclamation of "HOW F****** MUCH?!" when the yearly tax bill arrives.
One would expect that winding up petitions are somewhat more difficult to arrive at than missing a letter or a single payment.
... don't pay their sales droids on gross margin instead of revenue.
i have been with sales that essentially give the product away at cost or less to the company, but still made the commission on the revenue.
selling at a loss and then expecting full commission is just wrong. I have had this discussion before, but they usually say "well that is how everyone does it". Just because everyone is jumping off the building does not mean we should as well.
If you gave them 33 % of the GM the corp makes money and the droids will do quite well.
Probably the biggest reason is that the salespeople will not agree they should be paid less if the delivery team screw up and trash the margin.
The second reason is that they won't wait -- they want to get the cash as soon as the deal is signed. That is how you incentivise them to close (especially when you need them to close by a deadline).
And the third is that management decide whether they will accept the price. If they choose to buy market share, or enter a new market at a loss, that isn't the sales person's fault. You incentivise the sales person to get the highest price they can get and management decide if it is good enough. If so, they pay the commission.
You can argue that sales commission is a bad thing, but the bottom line is that is what motivates the sort of people you need doing that job. Just like providing your engineers toys and time for personal projects motivates them.
Sales commission isn't a bonus: it is a contracted part of their pay.
I have never worked on commission but I have worked very closely with those who have, and have even been offered to swap (note the word) some of my salary for commission instead. I have always declined.
I’ll tell you what’s not fair Nana
Not paying your suppliers
Not paying your contractors
Not paying your staff
Not communicating to your creditors
And all this goes on whilst people in the business are employing family members and claiming expenses for dog walkers
Anyone supplying this shambolic outfit with goods, time or emotion should run as far as they can from them at the first opportunity, It’s seriously in trouble.
Well really.... how can Getronics pay to HMRC or for that matter staff salaries.... after all some exes need need rent paid and Getronics pay landlords directly. Some exes... even get expenses twards dog walking. Trust me I know.
Some great people at Getronics but the guys in charge have not a clue about running a business.
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