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Re: Chunky Munky post# 6137

Wednesday, 12/23/2009 1:19:11 PM

Wednesday, December 23, 2009 1:19:11 PM

Post# of 16707
I actually had the same question humpday did, but he beat me to it. It seems to me they have set theirselves up for a strong variable cost operation. They keep their fixed costs low and pay as they need too. This is good. I'd rather see them do this than bring in their own employees, train them, then pay for the staffing regardless of how many products they sell. This is really the best way to operate though: surround yourself with people who do things better than you.

However, it would be to all of our benefit to re-evaluate the math. A lot of people will be getting a portion of the revenues. This has to cut into the profit margin. Does anyone else know how many people were involved in past successful products? Like the Foreman Grill, Magic Bullet, Sham-wow, etc. Is there any way we can accurately reassess the PPS based on the revenue?