Originally Posted by
matador
Overhead is exactly right. One of our competitors to the north is hurting badly, because they upgraded facilities, bought a $15k box truck, and a $40k hard drive shredder- and then didn't land one of the large contracts they bought it for.
If you're overhead is $0, it's almost impossible to lose money. Lean and mean is the way to go for sure- as the weaker competition is driven out, the lean companies will be in a pretty good position to profit on the rebound (Whenever that comes)
Nobodies overhead is $0. To compete you need to have the proper equipment to maximize profits or even stay in the game. If $55K (loan to be paid back over a few years I assume) is enough to bankrupt a company they were in trouble a long time ago.
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