So, things are as bad as I thought they were at Sharp. This recent headline caught my attention yesterday, "Out of desperation, Sharp begs its own workers to buy Sharp products".
What was my first thought? Whoa, maybe all of the Sharp Execs should go out and buy themselves a color copier for their home, they are probably going to need it, if things keep going downhill. In addition, just maybe all of those copier sales could right the ship! Yea, sure it will.
On March 15th, Sharp Corporation had 49,096 employees. On March 19th of 2015, Sharp announced a 12% reduction in the workforce in order to cut costs. Thus, I'm thinking the workforce stands at about 43,204 employees.
The article that I read stated:
I hope I'm doing the math right, thus there are three different work groups of employees. We add the total of the minimums for each group and then divide by three. Which means the average spending of every employee should be about $946. Sharp should have around 43,204 employees, if each employee spends and average of $946, then the total sales volume would be $40.7 million in revenue. Sharp also stated that there would be a two percent discount, so maybe we can figure around a cool $40 million in the next two months. I have no clue what the profit margin would be, what I do know is that Sharp Corp has a syndicated loan payment due March of 2016 for $4.1 billion.
Will the $40 million in additional sales really help? I'm sure it will help, but how many times will Sharp go to the well asking for Sharp employees to buy Sharp? Personally, if I worked for Sharp, yes I would buy something Sharp, but only if I needed it. It's the need vs want thing. If you need it, you buy it, if you WANT it, you don't buy it.
For all of those that have been viewing Sharp through rose colored glasses the last few years. Would love to hear your thoughts with this latest salvo.
-=Good Selling=-
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