Well, it depends on how many times we multiply it.
A recent article on Foxnews.com highlights the value of looking at all sides and making sure you implement a complete plan instead of a partial one with adjustment as you go. Plus, I believe every government and tax official should review this to the impact of a small amount like a $1.50 can make.
During the 2nd and 3rd quarters of this year, Burger King had a discount promotion on two whoppers. This discount was meant to be a standalone item with the fries and drink at the regular cost. However, somehow during the implementation of this discount, the software wasn’t properly changed. The fries and drink were given at the value meal price resulting in a net loss of $1.50 per transaction for the franchise owner in the state of New York. While I couldn’t find how many Burger King stores they own, I know it was more than one.
The franchisee did finally catch their error and corrected it, but not before losing $12,400,00.00. Yes, 12.4 million dollars at $1.50 at a time!
When so many businesses are running on a small margin today because of taxes, employee cost, and other operating expenses, a simple $1.50 difference per transaction can make a difference in staying in business or closing their doors.
We don’t often think of profitability in those small of terms, but in reality, it can come down to a $1.50 difference per purchase. As you are shopping for the holiday now or anytime in the future, if you like your local shop where you know the owner, and you are treated a little special by the staff is it worth an extra $1.50 or a little more to have them stay open?
For our government and tax officials, remember each time you add on to our tax burden, it does impact more than just the direct individuals. It is less money I can spend supporting local businesses, which means your revenue from them can become less or non-existent if they lose enough business from your taxes. If you do not believe this logic, look at what is happening to small businesses in San Francisco.
For those who been around for a few decades, I am sure you can remember the little store neighborhood store from the past or even the big chain stores that are around no longer. Some lost their way with bad management, and some failed to adapt to the current age, some specialized in items that we no longer use as the corner video store. That a natural evolution of the marketplace. There are those local stores that do not have the volume to always give the best prices but offer so much more in service and customer support. Haven’t we lost enough of them? The little bit extra they charge might be just enough to keep them open for the ever-changing future.
Yes, a $1.50 enough times does add up and make a difference.
