Subject: Re: [Harp-L] B-rads
Smokey - your and 'Crazy' Bob's posts both spoke to me. I'd already written
and sent in my own thoughts about Brad and the B-Radical since out of the
three of us I'm an actual customer who bought a couple of them, but you
both made a great deal of sense.
Trust you to break it down to the dollars and cents as well. Most people
simply don't understand what an enormous undertaking it was, and how many
people worked so hard along with Brad to try to have this company succeed.
I'm also very sad for all involved.
Elizabeth
"Message: 8
Date: Fri, 5 Aug 2011 13:41:46 -0400
From: Joseph Leone <3n037@xxxxxxxxxxx>
Subject: Re: [Harp-L] B-rads
To: harp-l _harp-l@xxxxxxxxxxx (mailto:harp-l@xxxxxxxxxx)
I don't know if people understand that IF Brad were to pay his employees
(5..I think?) 1.5X min. wage (or $10.88 per hour), his cost for labor ALONE
would run almost 10K PER month. One would have to sell at least 100 harps
PER month JUST to make payroll. That's 1200 per year, btw. That says nothing
of leasing a space, risk insurance, light, heat, storage, shipping,
packaging, postage, transportation, taxes, licensing fees, accident insurance,
an emergency eye wash station, fire extinguishers, or a salt tablet
dispenser. I'm not so sure that they were making that many harps.
Now if one were to sit down at their kitchen table and make a harp
completely by hand, I extrapolated that the cost would be $808.70 per harp. And
that's with none of the above other than Coolie wages for the builder, AT his
own home, with none of the ancillary expenses.
Now IF one could buy the reeds from a source (at, say $2.oo per reed),
one could reduce the labor costs of making the reeds and bring the price down
to $239.61. BUT, this could also be a problem in and of itself. Why would
you want to buy a harp with marginal reeds while paying for PREMIUM reeds.
AND, what supplier would sell you reeds...unLESS your price point was going
to be in an area which would NOT cause them competition?
If one could sub out some of the parts and add some machinery, maybe get
the price down to $70.99.
BUT, a company that has been in business for a long time and has already
amortized their machinery and buildings and spread the costs out among
thousands and thousands of harps, the cost could be $21.03. And THAT dear
friends, is exactly what is being done. Because the labor costs for a harp are:
(and this includes pension plan & health insurance for the workers) $6.23
for labor & a 'whopping' $1.84 for materials. Everything else are what I
like to call lost money costs.
I am really bummed out over the whole thing. As the entire bunch involved
in this endeavor are super people.
sadly....... smokey joe
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