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Rifles, Reloading, Optics, Equipment
Reloading
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<blockquote data-quote="QuietTexan" data-source="post: 2531554" data-attributes="member: 116181"><p>I agree. Companies will want to keep turning out a minimum volume of primers through whatever demand crash will follow this. They need to keep QC and staffing at a sustainable level that will let them keep making money during the lean times, but be ready to survive another boom time. A logical business answer is sell more volume at a lower marginal profit to keep the net the same during the lean times, stack some inventory and cash, and be willing to run at a paper loss for a bit if you can float it.</p><p></p><p>Boom times are not always great for companies. Max production is hard on people and equipment, it's not hard to start a death spiral of overworking people then losing people, overworking or skimping on maintenance and losing machines, all the sudden costs jump at the same time production drops, customers bail to someone with lead times that meet their demands. Very easy to go bust during a boom if a company doesn't have the self-control to work at a sustainable level. </p><p></p><p>I run a service business, right now I'm turning away new work because I don't have capacity to service it correctly - sure I could probably get a revenue bump right now if I said yes to everyone who came knocking but if that short-term gain costs me any people I'm screwed down the line. In my business it's much easier to keep the staff happy rather than replacing them and their skills, that keeps the clients happy, and the staff and the clients are more likely to stick with me over a few bumps during the next cycle because they know I'm filling in the valleys during the lean time by shaving mountaintops when things ramp up.</p></blockquote><p></p>
[QUOTE="QuietTexan, post: 2531554, member: 116181"] I agree. Companies will want to keep turning out a minimum volume of primers through whatever demand crash will follow this. They need to keep QC and staffing at a sustainable level that will let them keep making money during the lean times, but be ready to survive another boom time. A logical business answer is sell more volume at a lower marginal profit to keep the net the same during the lean times, stack some inventory and cash, and be willing to run at a paper loss for a bit if you can float it. Boom times are not always great for companies. Max production is hard on people and equipment, it's not hard to start a death spiral of overworking people then losing people, overworking or skimping on maintenance and losing machines, all the sudden costs jump at the same time production drops, customers bail to someone with lead times that meet their demands. Very easy to go bust during a boom if a company doesn't have the self-control to work at a sustainable level. I run a service business, right now I'm turning away new work because I don't have capacity to service it correctly - sure I could probably get a revenue bump right now if I said yes to everyone who came knocking but if that short-term gain costs me any people I'm screwed down the line. In my business it's much easier to keep the staff happy rather than replacing them and their skills, that keeps the clients happy, and the staff and the clients are more likely to stick with me over a few bumps during the next cycle because they know I'm filling in the valleys during the lean time by shaving mountaintops when things ramp up. [/QUOTE]
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