January 18, 2001
Dot Com Economics

So, back when I was self-employed or worked for small companies, I would often be confronted by economic choices. For example, if I or someone on my team wanted or needed a new piece of equipment -- let us say, hypothetically, a new monitor -- the decision to purchase would often boil down to the business.

For example, I might ask "How many more widgets must I/we sell to offset the cost of this monitor?" There's also the quintessential "What would it cost me if I *don't* purchase this item?" Even though the second question is more important, the first question always helped to put things into perspective that helped to create incentive. Usually, it would cause me or the member of my team to think in terms of "What can I do today that will help to drive up sales by X widgets?"

But.

What if you work for a company that loses money on every sale? What if you work for a dot com? THEN what do you do? It's like being in a bizarro world. Selling more means... losing more. So, if you want to clear the cost of a piece of equipment, do you try to sell more? Or, do you try to sell less?

Are you better off encouraging your friends to shop with your employer when you know that every dollar they spend brings your employer closer to bankruptcy? I don't get it. I just don't get it.

I think I'm beginning to understand why my essays are getting dumber and dumber. It's because *I'M* getting dumber. Spending time in the land of dot coms is hurting my brain. Decision making here has absolutely no basis in reality. This must be what it's like to work for the government.

Posted by on January 18, 2001 03:57 PM in the following Department(s): Essays , Tidbits , Tidbits II


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