Castanet

Fritzthecat wrote:It was a one million dollar per month NET operation when they closed it. Figure it out youself-fluffy-................

I'm not disputing that, but business is business. You need a product, which needs manpower, material and equipment to produce, and you need a market for that product. If any of those pieces are missing the idea is doomed from the start.

Fritzthecat wrote:It was a one million dollar per month NET operation when they closed it. Figure it out youself-fluffy-................

How much were they doing in revenue/sales?

Captain Awesome wrote:

Fritzthecat wrote:It was a one million dollar per month NET operation when they closed it. Figure it out youself-fluffy-................

How much were they doing in revenue/sales?

Geez...do you read?
ONE MILLION DOLLARS PER MONTH NET SALES.Net sales being cash in hand after all accounts and debts are paid.

-fluffy- wrote:

Fritzthecat wrote:It was a one million dollar per month NET operation when they closed it. Figure it out youself-fluffy-................

I'm not disputing that, but business is business. You need a product, which needs manpower, material and equipment to produce, and you need a market for that product. If any of those pieces are missing the idea is doomed from the start.

Could not keep up with orders.
Seeing as I have outlined this numerous times, I will, again, explain despite the fact I really should not have to. I know reading comprehension is seriously lacking ont his board so here we go:

O-I embarked on a plan code named "BRIC" which stood for Brazil, Russia Indian and China. The plan was to switch over contracts that were being produced domestically for foreign, cheaper (and inferior) glass but keep charging domestic prices. I did some private work after the plant closed for a bottler using these Chinese bottles. The bottling line was being run at less than 25% speed due to the bottles breaking ont he line, jamming etc. Also there were serious contamination issues with the bottles contaminating the product. Never did find out what all was in these bottles. With thatin mind I understand why so many cutsomers abandonned glass. The reason you've seen so much go to plastic is due to the glass company screwing their customers. Even SOBE which, when we first starting producing, swore they'd NEVER go plastic. Now ther are in plastic as LAvington was th only plant that could produce to their specification. Raw material was mined near Golden and shipped via rail. It was plain and simple greed.

Do you think it likely that the customers that abandoned glass in favour of plastic would could be won back?

-fluffy- wrote:Do you think it likely that the customers that abandoned glass in favour of plastic would could be won back?

Well after a decade plus of working with customer reps, I'd say it is likely but the longer the wait, the harder the job. Witness Molson's new wide mouth can. How much money do you think they invested in that?
What we need are environmental laws that keep the use of plastic at bay. It is toxic, dangerous crap.
For starters................

Fritzthecat wrote: ONE MILLION DOLLARS PER MONTH NET SALES.Net sales being cash in hand after all accounts and debts are paid.

No offense, but you keep changing this $1M constantly - one day it's "profit", now it's "net sales".

Net Sales is how much of the product you sell, top line.
Profit is what is your profit after you've paid all expenses to produce that product - wages, buildings, vehicles, etc.
Between these two numbers there is a huge difference. Profit is usually 10-20% of the sales.

I'm not sure if you understand the difference. And also, I'm not sure where you got this figure since you're not exactly management type and wouldn't have access to financial statements.

Captain Awesome wrote:

Fritzthecat wrote: ONE MILLION DOLLARS PER MONTH NET SALES.Net sales being cash in hand after all accounts and debts are paid.

No offense, but you keep changing this $1M constantly - one day it's "profit", now it's "net sales".

Net Sales is how much of the product you sell, top line.
Profit is what is your profit after you've paid all expenses to produce that product - wages, buildings, vehicles, etc.
Between these two numbers there is a huge difference. Profit is usually 10-20% of the sales.

I'm not sure if you understand the difference. And also, I'm not sure where you got this figure since you're not exactly management type and wouldn't have access to financial statements.

I worked there. It was net sales. Profits whatever...you're splitting hairs becasue you opened your mouth on a subject you know NOTHING about. Nothing new for you.

Look it up yourself. Next you'll be asking "Net sales or bottom line?"

http://en.wikipedia.org/wiki/Net_profit

Fritzthecat wrote:I worked there. It was net sales. Profits whatever...you're splitting hairs becasue you opened your mouth on a subject you know NOTHING about. Nothing new for you.

Saying that there's not much difference between sales and profit is pretty ignorant - because there's a huge difference. Profit is usually only a fraction of sales, for a healthy company it's anywhere between 10-20% of sales. For a non-profitable company it's negative, meaning they spend more money than they produce.

So, it was $1M in net sales. What was the profit on this? Do you know? Because if they spent more than $1M in expenses to produce this, there wouldn't be a profit. Saying "It was making $1M in sales" to describe it's viability is nothing if there was no profit after expenses.

Imagine somebody telling you that there's not much difference between torque and horse power your motorcycle produces, and that you're only splitting hair when you say there's a difference. You'd probably wouldn't even know where to begin to explain to this individual how wrong he is.

-fluffy- wrote:Do you think it likely that the customers that abandoned glass in favour of plastic would could be won back?

Fritzthecat wrote:Well after a decade plus of working with customer reps, I'd say it is likely but the longer the wait, the harder the job. Witness Molson's new wide mouth can. How much money do you think they invested in that?
What we need are environmental laws that keep the use of plastic at bay. It is toxic, dangerous crap.
For starters................

If you were on the sales staff that would put you in a good position to do a little of the initial leg-work on this. If there is interest in returning to the product that Lavington supplied before the Chinese glass/plastic thing happened, and if the equipment is still in place, and if sufficient supplies of staff and raw material are available what about an employee buy-out with gov't assistance like interest free start-up capital? It might be a long shot but it would have a lot more chance of realization if it weren't just folks looking for a handout. Some investment from the private sector and/or returning employees would kick-start the project. Ensuring that there is a market for the product has to be square one though. It occurs to me that a lot of former users of glass went away from it because plastic is so much cheaper and less labour intensive in that empties can simply be recycled rather than re-used. But you'll never know till you start making calls.

lol consumers glass was a crappy employer that repeatedly asked for government grants and then pulled out to go get cheap child labour in a depressed country did they not?
didnt they move to mexico to get out of paying fair wages?

keith1612 wrote:lol consumers glass was a crappy employer that repeatedly asked for government grants and then pulled out to go get cheap child labour in a depressed country did they not?
didnt they move to mexico to get out of paying fair wages?

China. The corporate parent company was evil...plain and simple. It was somewhat better when it was still Canadian owned.
They did get their tax cuts but did that keep the jobs here? No. Put that myth to bed. Unless you were there, you don't know. That place was in the black tot he tune of $1 million per month. When did that become unprofitable?

Captain Awesome wrote:

Fritzthecat wrote:I worked there. It was net sales. Profits whatever...you're splitting hairs becasue you opened your mouth on a subject you know NOTHING about. Nothing new for you.

Saying that there's not much difference between sales and profit is pretty ignorant - because there's a huge difference. Profit is usually only a fraction of sales, for a healthy company it's anywhere between 10-20% of sales. For a non-profitable company it's negative, meaning they spend more money than they produce.

So, it was $1M in net sales. What was the profit on this? Do you know? Because if they spent more than $1M in expenses to produce this, there wouldn't be a profit. Saying "It was making $1M in sales" to describe it's viability is nothing if there was no profit after expenses.

Imagine somebody telling you that there's not much difference between torque and horse power your motorcycle produces, and that you're only splitting hair when you say there's a difference. You'd probably wouldn't even know where to begin to explain to this individual how wrong he is.

Geez...what the hell do you think NET means? It is after expenses, IN THE BLOODY POCKET.

Go back to trolling the pro-BC Liberal threads. It wouldn't matter if you saw the bank accounts...you'd still be arguing for the sake of arguing. When did you work there and where did you work? You are so much more of an expert than anybody I worked with.

Fritzthecat wrote:Geez...what the hell do you think NET means? It is after expenses, IN THE BLOODY POCKET.

I don't think you should be using certain terms when you're not sure of their meaning.

Net Sales vs. Net Profit

I guess after all you meant "net profit", and not "net sales", and your flip-flopping can be caused by not knowing how to use these terms properly. And the whole reason I politely asked you "What were the sales at the time?" is then still unanswered, and I suspect you don't know the answer.

either way its kicking a dead horse.
its now just a empty old building waiting to be torn down.
the best Vernon strives to bring in is call centers that pay welfare wages and leave after short term.
no point in trying to get industries to move here with the minimum wage mentality and outrageous cost of living.
if you dont have long term workers to stay you wont keep employees.
strange the glass plant was supposedly making that kind of money yet friends of mine that worked there seemed to recieve layoff slips once a month and were always wondering what would happen.