4 ms·

I have the inverse story; factory workers picketing outside. First day the owner of the company walks up to them and explains: this company is worth $X. The t

by knob 4y ago

I have the inverse story; factory workers picketing outside. First day the owner of the company walks up to them and explains: this company is worth $X. The terrain (land) it occupies is worth $10X. Please get back to work.

ec109685 4y ago
So if the factory is in business, the owner has an $11x asset. Otherwise, a $10x asset. Seems like still in best interest to have employees for factory.
- ars 4y ago
  Yes, that's why he told them this - he prefers to be in business with employees. He's just telling them their negotiating position is very very weak, and their strike has no value.
- aaron695 4y ago
deleted 4y ago
[deleted]
pydry 4y ago
That signals an extraordinarily inefficient use of land. With land that valuable, and a land value tax/higher property taxes he'd have been run out of business years ago and replaced by one or more economically efficient companies.
- codingdave 4y ago
  Yes, but his statement that the land is worth 10X doesn't have to be true to be effective leverage in negotiation. Perception is everything, and casually dropping a "Eh, I don't really need you", and turning your back on a negotiation is often amazingly effective.