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A grain of salt to take with this story: >Federal Express began to market itself as "the freight service company with 550-mile-per-hour delivery trucks". Howev
by jere 12y ago
A grain of salt to take with this story:
>Federal Express began to market itself as "the freight service company with 550-mile-per-hour delivery trucks". However, the company began to experience financial difficulties, losing up to a million USD a month.
So he saved the company by winning $27k, even though they were losing $30k per day? Catchy tagline though.
>Smith impulsively hopped a flight to Las Vegas, where he won $27,000 playing blackjack. The winnings enabled the cash-strapped company to meet payroll the following Monday. "The $27,000 wasn’t decisive, but it was an omen that things would get better," Smith says.
http://en.wikipedia.org/wiki/FedEx_Express http://en.wikipedia.org/wiki/FedEx_Express
- tomkarlo 12y ago"Losing up to a million a month" doesn't necessarily mean "using a million in cash a month." The first may be based on accrual accounting, the second is based on cash accounting, and they don't need to equate in any particular time interval. E.g., if you pre-paid $12M in rent for a warehouse for a year, you might be "losing $1M a month" in accrual accounting (as the prepaid asset gets run down) but using no cash in that same month.
- mikecb 12y agoIn addition to what tomkarlo said, you might defer payment of bills due, but if you don't pay your workers, they won't show up the next week. In other words, as all microeconomists know, prioritize your variable costs.