3 ms·
$10/hr workers cost ~$30k fully-loaded per year. That's $1.5M for 50 employees. If we assume 30% margins, then materials costs are $3.3M and "profit" is $1.6M
by beambot 11y ago
$10/hr workers cost ~$30k fully-loaded per year. That's $1.5M for 50 employees.
If we assume 30% margins, then materials costs are $3.3M and "profit" is $1.6M. Subtract off employee salaries, and he's netting $100k/hr. And that's not even accounting for taxes or other fixed costs (eg. realestate). Given the strong competition in the electric motor market... he's living on a razor's edge.
If he can eek out higher margins, like 50%, then he's doing $1M pretax. It's not bad, but not great -- especially if there's volatility. Still a razor's edge in that market.
- danieltillett 11y agoI suspect that you are right about the profit margins hence the bosses stressed behaviour. The point I was making is that we should not just apply tech wages to every situation - many people are living on wages at, or not far, from minimum wage.
- CPLX 11y agoMaking a million dollars a year on average is, in fact, great, by nearly any non-delusional standard.
- reitzensteinm 11y agoPlease don't label those that disagree with you delusional. The guy probably has personally guaranteed loans, and running a low margin business where things can swing against you hard is no fun at all. We are incredibly lucky in the software world. I'd take a steady 200k over the picture painted by op, and given the skills required to build such a business and the time investment, I'd agree that's not great.
- CPLX 11y agoBelieving that having more than twice what it takes to make it in the top 1% of U.S. income is "not great" and that a major lifestyle compromise is to make 5x the average U.S. income for a family of four both strike me as symptoms of a delusional view of wealth and income in the society you presumably are a member of.
- reitzensteinm 11y agoI reject your premise. The situation is nothing like having a million dollar salary. You are discounting risk, past and present. It's all fun and games until a financial crisis makes you bankrupt via your personally guaranteed loans. Plenty of people on this site can make 200k contracting, and in terms of risk and return on investment, that's a way way way better position to shoot for. Now, do those people having 200k have it great? In my view they do. But you are doing simplistic analysis of the situation and labeling dissent as delusional. That's cheap and why I replied.