Our company learns a basic lesson in math

[Rizon]

Meeting is tomorrow and not today like I thought.

But at the last minute my boss renegotiated the pricing contract with the vendor. Now there are several more options available, some being bad options and some being good options. But the option is available to NOT lose a shit ton of money.

So my bitching to the Treasurer led to an executive meeting which led to the executive committee pressuring my boss to pressure the vendor for a better contract. I'm glad I spoke up.

[Chief Rum]

Originally Posted by Rizon

Meeting is tomorrow and not today like I thought.

But at the last minute my boss renegotiated the pricing contract with the vendor. Now there are several more options available, some being bad options and some being good options. But the option is available to NOT lose a shit ton of money.

So my bitching to the Treasurer led to an executive meeting which led to the executive committee pressuring my boss to pressure the vendor for a better contract. I'm glad I spoke up.

Unless they select a worse option.

[Rizon]

Originally Posted by Chief Rum

Unless they select a worse option.

True that. There are still some really dumb options available.

[JediKooter]

Oh what I would pay to have Monty Hall there when they make the decision.

[britrock88]

Originally Posted by JediKooter

Oh what I would pay to have Monty Hall there when they make the decision.

Of course, if you got through enough calculus to get to series and sequences, you would learn that when confronted by Monty Hall, the best option is to switch!

[JediKooter]

Originally Posted by britrock88

Of course, if you got through enough calculus to get to series and sequences, you would learn that when confronted by Monty Hall, the best option is to switch!

Indeed it is.

"You can have whatever it is in this box, or...take what's behind door number 3!"

[Mike Lowe]

Is this your boss?

http://youtu.be/BN7-0YT-OSQ

http://www.youtube.com/watch?v=HuGIgf-ICHM

[Marc Vaughan]

Originally Posted by Raiders Army

Not the same thing, but I wonder how Amazon will fare with the Kindle Fire by selling them at a loss.

Totally different concept - Amazon have a lot of cash and a large loyal (as far as customers go) user base ... they can sell a fire at a loss expecting to make money on their cut from the store via. books, apps etc.

I got mine about 3 weeks ago - $199 ... since then I've probably spent around $60 on apps and books on it already, so thats another $20 they've gotten out of me to offset any loss they made from the initial purchase already.

[Rizon]

Decision: continue with product upgrade, take small loss for 7 months upon which we would make up the loss and then gain, but at the risk of having a potential liability after the 7 months which will probably be covered by the gain. Begin to make profit as normal going forward after month 7. From an accounting standpoint ... not the best decision available, by by far not the worst. I can say my reaction to this is "meh". I would have preferred to not do the upgrade at all (no reason to) or at the very least drug out the negotiations for 2-3 more years to get a better rate, since the current contract doesn't expire until 2016.

From a procedural standpoint, it's a nightmare. Basically the decision made just saddled me with a project that will take about 150 hours to complete. There are only 80 working hours left until upgrade, or 240 hours .... period. So somehow I have to be superhuman and figure out how to get that done.

From a customer standpoint, they will have to pay more for a product they didn't actually need to upgrade (old product works great), but that extra cost to them can be paid anytime within the next 7 months.

And people wonder why corporate accountants drink so much.