I agree that any business that doesn't know what their cost is will not do
well. I also agree that not all service bureaus fall into this trap.
But, I also think that firms looking to go after business by cutting margins
had better know down to the minute details what costs are. They had also
have a line drawn on where they want to stop losing money, how long they
want to maintain the strategy, and exit strategies if the tactics fails.
And, based on my experience in molding some years ago, better hire some top
notch sales people to recover the accounts after they bolt to the next low
bidder for the job.
And, this is not a generalization of all SB.
B. J. Arnold-Feret
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