🚀 go-pugleaf

In article <ewright.725665391@convex.convex.com> ewright@convex.com (Edward V. Wright) writes:
>In <1992Dec27.160134.20228@ke4zv.uucp> gary@ke4zv.uucp (Gary Coffman) writes:
>
>>$100,000 a year is on the low side. Most companies figure it's 
>>closer to $250,000. 
>
>The ones that are no longer in business.

Um, gee here's a good one for me.  STicking up for gary.  Actually both of
gary's numbers are quite reasonable.  sad but true.  what he isn't
pointing out, is that these numbers are more for large organizations  and
especially defense related business.

now the accounting rule of thumb for commercial business, is that each of your
people better generate 2.5-3 times their salary in revenue, or you aren't
making money.  in defense industries,  it is not unusual for
overhead to exceed salary in an order of magnitude of 7.  example.
i have seen projects where two engineers worked, on a prototype,
they were each paid about 40k/annually,   but the project bills
would run about 15k/week.  amazing what the overhead can run.

Now what gary is missing is that thin slim organizations can run for
significantly less.  Apple, started this way.  cisco did too.
Lockheed skunk works still tries to.  but this is for small operations
only.   My dad used to run a 20 man shop on 2,000 month overhead plus
salaries.  

>
>If we spent that much on each employee, personnel costs would exceed 
>gross revenues.  And that allows *nothing* for manfacturing, materials,
>etc. 
>
>But then, I'm not working for Gary Coffman, Inc.
>

Um,  you wonder why the B-2 costs 1 billion per?

>
>But you just said you weren't going to provide any of those things,
>Gary.  The engineers were going to live at Motel 6 and work at home.
>And it was still going to cost you over $100,000.
>
>Weasel, weasel.


 No need to call him a weasel,  just accuse him of screaming :-)
the motel 6 school of prject developement should keep costs to about
100% of salary.  the theory is rent a warehouse next to a motel.  
use the warehouse and motel interchangebly.  but you do need
motivated staff to do this kind of work.

pat