Recent Articles

Economy of Scale

A business principle that basically states that as the volume increases, the contribution margin or profit increases at a faster rate per unit of measurement. Normally affiliated with processes this theory is not pure and therefore, application must be well conceived.

Economies of Scale

02/07/2017

Of the basic business principles, economies of scale has the greatest impact on profitability over any other business principle.   As an enterprise’s investment is spread over higher volume the cost per unit of production decreases.   The [...]

Hospitality Industry Characterized by High Fixed Costs

07/07/2015

There is one unique financial characteristic that is synonymous with the hospitality industry; that is high fixed costs.  Or another way of stating the same financial attribute is to simply state that the hospitality industry has low variable [...]

Team Based Pay in the Hair Salon Industry – A Critique

06/21/2015

Team based pay in the hair salon industry is the newest solution for compensating employees and increasing the overall performance of a salon.  IT WILL NOT WORK.  This article is a critique of this program and provides several reasons why this [...]

Real Estate Agent – Drawbacks and Delusions

11/17/2014

The highest prized benefit of owning your own business is independence.  You rely on your skills and have to report to no one but yourself.  This is the allure of becoming a real estate agent.  Imagine, making a lot of money and working when you [...]