McKeesports largest employer calls it quits! (buy, price, moving)

[WILWRadio]

More than likely its a lack of demand due to declining sales. LL Bean recently closed a Call Center in Waterville, Maine for this very reason.

[TechieTransplant]

Originally Posted by WILWRadio

More than likely its a lack of demand due to declining sales. LL Bean recently closed a Call Center in Waterville, Maine for this very reason.

That's big, any idea how LL Bean is doing as a company?

[WILWRadio]

Originally Posted by scottrpriester

That's big, any idea how LL Bean is doing as a company?

The two other call centers that LL Bean has are OK. This one was closed because sales have declined and the Waterville office was apparently very expensive to maintain. In a strong economy with high sales volume the higher cost of doing business at that facility were justified. But in this economy apparently it was not.

WATERVILLE L.L. BEAN TO CLOSE CALL CENTER

My guess is that the Dish Network center was faced with a similar situation. I suspect though that the cost of doing business in McKeesport is a little lower than Waterville, Maine.

[fleetiebelle]

Originally Posted by scottrpriester

That's big, any idea how LL Bean is doing as a company?

They are expanding their retail market, though, since they now have stores outside of Maine. When my parents were last visiting they happily dropped over $300 up at the Ross Park store.

[Wingfoot]

Originally Posted by PeeAye Native

If Pittsburgh is too expensive, then those same corporations have already ruled out all of NJ, all of NY except the Adirondacks, almost all every county in the Lehigh Valley and all of southeastern PA. All of eastern MD, northern VA and the entire DC area.

The point is, Pittsburgh is pretty inexpensive compared to other metro areas of the country. If companies are saying they are relocating because of that factor, dig deeper, because there are other reasons hidden somewhere.

Exactly, the whole US is shutting down as the dollar goes into its death spiral.

Be sure and donate whatever you have to Wall Street so they can buy Euros and Swiss Franks in the meantime.

[Wingfoot]

Originally Posted by BrianTH

Even in normal times, particular jobs and particular employers come and go. That is the nature of a competitive capitalist economy.

Would be if we had one, the thing capitalism abhors most is competition.
hence trusts. monopolies , collusion and bribery are its very lifeblood.

[Hopes]

Originally Posted by Wingfoot

Would be if we had one, the thing capitalism abhors most is competition.
hence trusts. monopolies , collusion and bribery are its very lifeblood.

Many people have told me that they would have started small businesses or tried self employment if they didnt' need to work for a company for benefits.

Healthcare reform could have a positive impact on how business is done in the United States.

Some might whine, but there are plenty of people out there who are willing to step into their place once they dont' need to rely on corporations for benefits.

[greg42]

Originally Posted by scottrpriester

That's big, any idea how LL Bean is doing as a company?

LL Bean is a private, family-held corporation, so details of how they are weathering this are not particularly forthcoming. As a longtime customer, though, I can say they continue with plenty of incentives. They've been giving out promotional gift cards to use later for seems like months, and it's still going on now through Dec 24. In the past I seem to recall spending $50 to get a $10 promo card. Right now it's spend $25 to get a $10 promo card (promo card good through mid-Feb). Any $25 or more purchase qualifies. That definitely suggests a push for some cash flow at the expense of profit, but it doesn't really tell us the seriousness of it all.

Although they have made moves into some lower priced items, LL Bean is still seen as and generally priced as somewhat upscale, despite the outdoor roots. That probably hurts more now than if you're a more discount oriented retailer. And yet, we see the opening of a new REI at Settler's Ridge. The idea that the Pittsburgh are actually needs two REI stores seems even more risky to me than one LL Bean at Ross Park. I know all about Pittsburgh retail being fractured, etc, but still, these are destination-type stores. (The Settler's Ridge REI is a bit smaller than the South Side Works one, or seemed it.) I'm pretty sure LL Bean is in a decent position to ride out the downturn and see its 100th birthday in a couple years, but I'm guessing there are a few tough years in there (this year, at least some of last year and probably next).

[Hopes]

A lot of call centers for mailorder catelogs will be closing since most people make place their orders over the internet these days.

[mckeesport_alum]

Originally Posted by Geeo

I was wondering about the ten-year tax abatement, too, when I read the article. But the satellite TV business isn't what it used to be, either. As Brian said, businesses come and go all the time - it's the nature of capitalism.

The economic climate could have contributed to the decision but I would be shocked if the tax abatement didn't play a major role. It happens all the time. They just shut down, fire the employees, find the best deal in the state (or country for that matter), and hire new employees. The new employees cost less because, well, they are new.