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Sorry but no.
In today's mass produced manufacturing environment wages are a small percentage of total costs of goods to inventory.

An example: A six pack of Coke or Pepsi has a cost to inventory of approximately 17 cents. (Yes you read that right.) A typical break down of that 17 cents is:

Product (the soda) cost 4 cents.

Plant over head (insurance, lights, gas, taxes, rent/mortgage, depreciation, etc.) 3 cents.

Packaging cost 7 cents.

Labor 2 cent.

The problem is that of these, the only one they can really cut down on is the 2 cents going to labor. The others are pretty much fixed costs.

If you cut labor costs in half, yiou have very little effect of the total cost of goods to inventory. And it certainly comes no where close to the 55% you have been talking about.
Posted by: No_Ax_to_Grind   Posted on: 04/27/04 You are currently: a Guest | Members login | Terms of Use
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You think?  rapson | 04/27/04
Get over it Offshore Outsourcing is here to stay  Kamakazii | 04/27/04
Look past the end of your nose  WhoIsDaMan | 04/27/04
Not quite right  voska | 04/27/04
...but close enough for practical purposes  WhoIsDaMan | 04/27/04
Sorry but no.  No_Ax_to_Grind | 04/27/04
Use common sense  voska | 04/27/04
I see you know little or nothing about manufacturing.  No_Ax_to_Grind | 04/27/04
Markups are a sham  AbsolutelyNot | 04/27/04
Look at the reality  AbsolutelyNot | 04/27/04
short vs. long term  PA-ITGuy | 04/27/04
No. 1, it's not as cheap as it used to be.  Taz_z | 04/28/04
you get what you pay for  PA-ITGuy | 04/28/04
Correction  Taz_z | 04/28/04
But others found the hidden costs not worth it  Sadler_z | 04/28/04
Depneds who does the study.  No_Ax_to_Grind | 04/27/04
Let's spread a bit of that wrath around, shall we?  Yen_z | 04/27/04
I agree, it applies to many companies.  No_Ax_to_Grind | 04/27/04
You have no clue...  computer_man | 04/27/04
Shareholders voice concerns  Selki003 | 05/01/04
IBM outsourcing  JamesParker | 05/12/04

What do you think?

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