Saturday 8 February 2020

big business maths

You have to admire big business managers. Such a firm grasp of business, such a small grasp of maths.

A major mining company has raised the price on beer at its mine sites. The beer is for sale at the "wet mess", on-site bars for the workers who live on site.

The average price rise, says a manager, is 14%. The idea is, that beer prices should match prices in local pubs... not that there are any local pubs on a mine site. What the company gets, is extra profit from a captive market. Excellent business strategy.

And that 14 per cent... The daily paper checked prices. One beer will now cost 14% more. All the rest have gone up by more -- sometimes much more -- than that quoted increase. The manager seems to be confusing "average" with "minimum".

Maths skills zero. Profit-taking high. That manager will soon be promoted.




Nick Lethbridge  /  consulting dexitroboper
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"I took out a loan to pay for an exorcism. If I don't pay it back, I'm going to get repossessed." … Olaf Falafel
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