Nexus Energy Services Inc (IBGR)

[redwagon]

I think it could be as much as $100k. Seems like manpower wise it is absurd, even at $250/hr, there is no way it would take 400 man hours to complete. I think the auditors know how much it means financially to a company so they gouge them.

My old boss used to price repairs on expensive electronics for our customers. He never went by how many hours it took multiplied by labor rate, he looked up how much replacement cost was and charged 25% of that. It was almost always much more than time and materials. But the customer needed it and figured they saved 75% from buying a new one and were happy.

It is like the auto mechanic that says he can fix the starter on a car that won’t start for $300. The owner thinks that is cheap and say okay. He proceeds to slide under the car and smack the starter motor. He slides back out, and says try to start the car. Vroom!! It starts. He asks for the money and the owner says how can he charge $300 for one stroke of a hammer. The mechanic says the hammer stroke was free, the $300 is for knowing where to hit it.

We need the audit, the auditor knows it, in fact all the auditing firms know it, so the gouge and price fix in the industry.