Re: Decaf
- From: "Rusty" <kenrussellremoveshoes@xxxxxxxxxxxxxxxx>
- Date: Fri, 7 Oct 2005 13:43:44 +1000
In the final analysis the economics determines the outcome. Your decision
will either make more profit or less. If the "less" is not enough for the
business to continue then you simply don't make it, end of story.
If you decide that you cannot do without the second grinder despite the fact
that it will lose you enough money to send you broke, then you shouldn't be
in business, any business.
Of course we are talking extremes here, and a real life situation is more
complex than what I have outlined. The bottom line is what do I gain or
lose by not having one compared to having one. In the scheme of things, a
second grinder is probably not going to tip the scales either way to any
significant degree.
"Brent" <me@xxxxxxxxxxx> wrote in message
news:ysl1f.16539$iM2.1356306@xxxxxxxxxxxxxxxxxx
>
> But there are some things you can't not do - irrespective of the
> economics.
>
> The question as to the value of a grinder for instance for a lot of places
> could be questioned from a numbers perspective. You couldn't not have one
> though...
>
> Brent
>
>
>> OK, let's look at it another way.
>>
>> Take the cost of the extra grinder and divide it by its expected life.
>> This tells you how much extra profit you need each year to recoup your
>> outlay. Now take the extra profit and divide it by the profit you make on
>> a cup of regular coffee and that tells you how many cups of decaf you
>> need to sell each year just to recoup your outlay.
>>
>> If you sell more than that number then you are in front, provided your
>> sales of regular coffee don't decline, which they probably will.
>>
>> Have fun,
>> Ken
>>
>>
>
>
.
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