Sales are up - profits are down.

[SmileyRose]

So, not long ago I post something scathing against my employer and the consensus was that it's long past time for me to speak up and either get better wages or jump ship if I can. Had a heart to heart with the boss man. I was lucky - I could have ended up out on my can with little to no job prospects. Instead I walked away with the cash I deserve, a huge apology for being neglected this long, and a new understanding of the new reality in business.


The realities for non publicly traded companies.

Consumers at the top third of the food chain sat on their cash for years but are now beginning to spend. Orders to the world's manufacturers are exploding and they are scrambling to get in raw materials and add labor.

Manufacturers in China, India, Vietnam etc are seeing labor costs double or triple. The workers they laid off have found a better way to make a living and are no longer willing to come live 500 miles from home, in a crappy dorm for 50 cents a day. (good on them)

This reality is causing lead times to double or triple and the wholesale cost of the goods to double or even triple. Add in the exploding transport costs to move the raw materials and product around the world.


1. Costs for retailers to obtain almost every product sold in the US has doubled or tripled in the last 6 months.
2. US consumers have seen wage declines and are trying to force DOWN retail pricing.
3. US wholesalers are being especially squeezed in the middle. Business bankruptcies are starting to go up.
4. Wholesalers and retailers are seeing higher sales but smaller real profits and have to play accounting tricks to keep creditors happy.


Wholesalers are seeing profit margins drop low enough that they are scrambling to keep credit lines open. Their retail clients are going 3-9 months before they pay their bill - further adding to wholesaler's costs. Those that survived are facing new challenges because of the price of goods that may force them out of business.

This is creating a self feeding downward spiral. American small to mid sized businesses are being squeezed from every direction. Utilities, taxes, product cost, medical care costs, credit costs. The choices they are making are difficult and seem to be no win.

I don't know what the answer is. Hopefully smarter heads will figure the way out.

[Jackpine Radical]

1. Small and mid-sized businesses are expendable.

Just like the bottom 9/10 of the income scale.

Only big business matters, and they're doing just fine. Boom times.

The Great American Delusion is that we matter any more to the people on top of the world economic heap.

It's time to bring the First World down to 3rd world levels. It's happening in Greece, Portugal, Ireland…





And I have come to realize that I too am due beer and travel money and many experiences.