Upgrade your account to a Community Supporter account and remove most of the site ads.

Reply to thread

Message: <blockquote data-quote="seankreynolds" data-source="post: 1598621" data-attributes="member: 3029">Unfortunately, your point isn't really relevant. When the bean-counters look at the profitability of each part of the business, they look at how much money each part is making, not how much money each part is making per employee employed in that division. They just say (and note those numbers are just examples and not at all accurate) "RPGs are making $10M a year profit, cards are making $70M a year profit."  The head of each division is trying to make their numbers look as good as possible so when the layoffs come around they can say "We're X profitable, we shouldn't have to lay off anyone."  No division is going to say, "Sure, we bring in ten times the revenue of this other department, so we should factor into our profit ten times the overhead costs of that other department." Or "We have twice as many employees as this other department, so we'll include twice our share of the floorspace/rent portion of the overhead." It just doesn't happen ... nobody volunteers to make their own numbers look lower.That's why companies apply these costs evenly. And that's why smaller, less-profitable products can be almost worthless to a larger company when they'd be deliciously tasty to a small company.(I mean, if I wanted to stay at home and write adventures and publish them in PDF, I could probably make a decent living doing so. Writing it myself, getting a friend to edit it for a small cost, using clip art or 3D art I created or a small portfolio of stock illustrations from artists friends I know, typeset it myself, sell online. It would be a lot of work, but almost all of my costs -- other than the initial investment in the typesetting software, which I don't have) are costs I'd have anyway just for living in my apartment: computer, electricity, work space, etc. HR costs? None. Marketing/sales costs? None, I'm the marketing/sales guy. Mailroom employee costs? None, that's me again. Janitorial costs? None, I'm the janitor. And so on.)</blockquote>

Verification