I've been wondering how a company can earn millions (or even billions) in selling snacks and goodies priced at P1? With all the manpower and technical facilities needed (operations and maintenance), a company for sure spends a lot of money. But with all these expenses, how come they are still able to earn big bucks?
[To be concluded]
Thursday, May 10, 2007
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6 comments:
easy, the factory workers are in contractual basis, thus saving them the hassles of paying SSS contributions, and tax evasion. add to that the growing market of these snacks because of the growing rate of poverty that even a 5 peso jack and jill snack is already a luxury to most filipinos
pare, kaya "to be concluded" ;)
Ths simple answer is that they sell more than they spend, that the actual cost of the product is less than 1 peso.
^ Agree. That thing actually amuses me. Imagine,(rough estimate)a peso pack of a peanut snack would cost the producers less than 50 centavos capital. Ang masaklap dito, ibig sabihin ang daming dinadaanang oppression ang prosesong ito(from farmers to factory workers).
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I wish to finish this post but I couldn't organize my thoughts well. And after receiving comments, ang dami ko na namang naiisip at nagiging sabog ako.
^ Why do you assume the existence of oppression? It's probably there but you can't draw that conclusion based on a 50c production cost.
My assumption has something to do with the idea that, for a company to be able to spend less, it may need to venture in activities that will cut-down its expenses (in relation to RJ's comment).
I've missed to elaborate the basis for my assumption. Yeah, it's wrong to draw conclusion having production cost as basis. It could have been used as a springboard for explaining the existence of oppressions in a company instead.
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