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What about this part? "Just outside Oslo, a savvy entrepreneur named Ola Moe recently rented a vacant hospital for $10,000 a month, did minimal upgrades, and b
by gotchange 11y ago
What about this part?
"Just outside Oslo, a savvy entrepreneur named Ola Moe recently rented a vacant hospital for $10,000 a month, did minimal upgrades, and began charging the government $460,000 a month to house and feed 200 refugees."
It looks to me that Ola is making a killing here.
- silverbax88 11y agoSure, if you overlook the part that he is housing and feeding 200 refugees.
- seivan 11y agoHe isn't. The tax payers are.
- silverbax88 11y agoOf course, the tax payers are showing up and feeding everyone and staffing the place. So it's free money, right? No work involved at all. Not like he's doing a ton of work and creating value, then charging for it...or anything.
- cpwright 11y agoUntil they aren't, at which point the building is still a liability even if it is empty.
- TeMPOraL 11y agoIt's also common to overlook that just because there is a house already bought, doesn't mean people can live in perpetually without someone having to spend money. Houses require constant maintenance. Floors won't clean themselves, plumbing won't fix itself when it breaks, etc. Even if people had alternative food and water sources, you can't house them in comfortable conditions without expending money on maintaining those conditions.
- alexc05 11y agoexcept that he's now also responsible for feeding n refugees at a food cost of y per day. (it looks like n in this case is 250) Include also the cost of x beds, water, toilet facilities, general staff, operating costs of kitchen facilities, cutlery, dishwashers. The profit on the difference between $10k and $460k is not $450k. $460k / 30 days in a month = $15k per day. $15k / 250 refugees & asylum seekers = $60 / refugee per day. (fed, watered, sheltered, & safe) From the article, the profit is likely 3.5% of $460k or roughly $16k/month.
- Coding_Cat 11y agoNote also that Norway is, in general, an insanely expensive country so $60 gets you less than it would in most countries.
- gotchange 11y agoHe/She is paying wholesale not retail prices for the everyday household items.
- Coding_Cat 11y agoTrue, but those would most likely scale (but not perfectly) with the consumer price. Higher tariffs and transportation costs for example.
- gotchange 11y agoIt's $75/day/refugee just for food, water, utilities and other misc. expenses. I doubt that he/she is running this facility as a 5 star hotel to charge this high from like $30/day/refugee to the rate above.
- vidarh 11y agoIf he could profitably charge $75/day and run it as a 5 star hotel in Norway, he should run a hotel as he'd be wildly successful if he could offer what would be bargain basement prices compared to his competition.