Friday, October 29, 2010

From a Sales Economy to a Profit Economy

I just read of a great corporation making big profits for the first time in a of couple years. Hooray! That's great.

If you look deeper into how they did it, it's revealing. They didn't increase sales or prices of their product. In fact, sales were down and prices were down, too. What they did was reduce expenses and renegotiate salaries and benefits.

Smart company. But what is also worth noting is that this company has decided they need to survive and thrive one way or another. That may no longer mean that the answer to success is hiring people, building factories and increasing production. It may mean the opposite.

If you worked for that company, I would guess you'd feel good that the company is stable, but you couldn't become complacent assuming that you'll have your job no matter what. And that's a good thing...

Barry LaBov
LaBov & Beyond
LaBov Sales Channel
PB&J Newsletter

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