Thanks for many great posts by many of you. I have spoken through back channels to many of you and have enjoyed the interaction.
I have a degree in business. I run two other businesses, thank god as I wouldn't survive on income from X with my lifestyle.
My profit margin on business A runs at 22% (net) only because I do not participate at all. (22 years and running)
Profit margin on business B which I run full time unless X steals me away is 30%(net), (12 years and running)
My two businesses above generate about half the total gross X generates but the profit margin is 4-6%
Maybe I am spoiled, but a business that generates over 800k in gross revenue IN MY MIND should generate a bare minimum of 10-12% profit margin, not 3-5%.
So one must ask ones self, where am I to increase the profits? I can't control insurance, I can't control gas as these are fixed/somewhat variable costs, maintenance there is not much control over. The only real control that we have at X is our employees, what we do or do not pay them? This is a tough job, the furniture and over sized boxes for our peanut pay delivered to high rises doesn't wash out. I have ethical standards as well as compassion for whats expected of our guys, I am not or will not ever try and screw them over for 50 bucks or 100 bucks a week for doing there job.
X asked me before ISP negotiations, "what is your cost of doing business, what does it cost you per stop." I figured my cost per stop with 15% profit margin was approximately $4.84 per stop. After doing all these detailed calculations with supporting spreadsheets for what we were asking, do you think that X ISP negotiator gave a chit, hell no, he disregarded everything. They told us thats what they wanted and when we actually had supporting documentation to support they did not even want to see it although we told him we had it. Folks, its NOT a negotiation. Its a take it or leave it and those that have serious money invested will take it ;-(((((((
As far as legal and contractor relations. Are they paid by us the contractor? If not, they don't represent us, plain and simple. They will always cover X ass. ALWAYS.
As far as failure percentages. Thats just not who I am or what my company is about. I am paid errrrr slaved to do a job and I will do it to the best of my ability while grumbling under my breath or ranting on this board. I am NOT a X hater to a certain degree.
What I want is adequate compensation to be able to pay my hardworking staff a decent living in the bay area and to pull a decent income on having to manage all crap X throws at my face.
Some really good dialogue by many without derailing. Kudos to you all.