People often say to me that their boss or their company is mean: “All we want is a 5% payrise” or “All we want is one more person to help in our team of 20”.
But both of these would mean a 5% increase in costs, and if you’re making only 5% profit this would wipe out all your profit. If you’re lucky enough to be making 10% profit then it would halve your profit, and I doubt whether you’ll get double the turnover from one more person or from giving everyone a 5% pay rise.
So although it seems like only a small thing to ask, you can see why the company can’t afford to do it.
Similarly, if you as a manager can reduce your costs by just 5% you can double your profit…. or can you? See my next post for the answer to this!
Onwards and upwards