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Farming is done for the FARMER...to make his living. That is exactly what they are doing. The “points” that you are trying to make are not based in reality. No idea why I am even responding here.
Actually, it's interesting you bring up overhead costs. In fact labor all together is considered an overhead cost that must be paid off by the goods being produced.
That means the price a mechanic is paid precedes revenue.
In fact salaries determine revenue rather than the other way around. Read about price management in business.
Do you not know the difference between revenue and gross profit?
Revenue - Cost of goods (incl. the hourly labor cost of that mechanic) = Gross Profit
Revenue includes the sales/service income before mechanic labor cost. The price an hourly mechanic is paid precedes gross profit not revenue.
I agree, But credentials do matter otherwise they wouldn’t exist, they establish a baseline of competence.
Regardless though I get to choose what I am willing to work for, how is that changing the subject.
If I can’t get a rate that is historically reasonable that IS an indication of a sick market and signals a time to move on, because I can’t move on to Russia Germany etc due to family reasons then I am just unemployed.
It’s not complicated, if the market can’t pay degreed professions a good wage it’s time for those people to move along even out of the USA if necessary.
Why did you choose to not obtain a skillset that would make you economically competitive in this healthy market?
What the heck are you talking about, that was my original point:
Quote:
Originally Posted by Winterfall8324
They produce wealth for the sake of the workers.
Let me ask you this, does a farm exist for consumers or the farmer? Well today it exists for the food companies and chemical industry, but naturally it is created and formulated by the farmers.
These concepts may be too foriegn for you to understand, but they are true.
Do you not know the difference between revenue and gross profit?
Revenue - Cost of goods (incl. the hourly labor cost of that mechanic) = Gross Profit
Revenue includes the sales/service income before mechanic labor cost. The price an hourly mechanic is paid precedes gross profit not revenue.
Revenue has to first be created by sales (or rent or whatever).
But that revenue must be planned, so that it can fulfill costs an get a profit from itself. So say one year a company had twenty workers, they expect to pay them a total of $1,000,000 that year. When it comes to price management, they factor in that cost to the price of what they are selling along with production capacity and that overhead cost.
What the heck are you talking about, that was my original point:
look at the bold and tell me what that means.
A farm exists to make money. No matter who owns it or run it. If there were no consumers to purchase what they produce, I think they would sell the farm.
Revenue has to first be created by sales (or rent or whatever).
But that revenue must be planned, so that it can fulfill costs an get a profit from itself. So say one year a company had twenty workers, they expect to pay them a total of $1,000,000 that year. When it comes to price management, they factor in that cost to the price of what they are selling along with production capacity and that overhead cost.
Revenue does not have to be first created by sales in order to pay labor costs, operating cash flow to pay wages can come from a variety of sources.
Price of products/services are based on what the market will bear, not labor costs (though may be influenced by this).
You are still not addressing why you previously mixed up revenue and gross profit/net income.
I agree, But credentials do matter otherwise they wouldn’t exist, they establish a baseline of competence.
Regardless though I get to choose what I am willing to work for, how is that changing the subject.
If I can’t get a rate that is historically reasonable that IS an indication of a sick market and signals a time to move on, because I can’t move on to Russia Germany etc due to family reasons then I am just unemployed.
It’s not complicated, if the market can’t pay degreed professions a good wage it’s time for those people to move along even out of the USA if necessary.
It doesn’t really matter what you are willing to take if an employer doesn’t think you provide the value they need for their business.
You are coming from the approach that you are entitled to a certain level of compensation, regardless of how productive/effective you might be based on the needs of an employer.
A farm exists to make money. No matter who owns it or run it. If there were no consumers to purchase what they produce, I think they would sell the farm.
You mean farmers actually think about the consumers and aren’t just happily toiling away to feed just themselves, while obtaining spiritual fulfillment and Epicurean personal pleasure?
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