Bolt = $ 0.06
Estimated Hourly Wage of Home Depot employee = $10.00
Number of Employees needed to ring up one bolt = 2
Time Elapsed during said ringing up = roughly 3 minutes
so...
[(hourly wage / 60 *to get money earned per minute)] times the number of minutes worked) times the number of workers = cost to Home Depot in Man Hours of Selling one bolt
And if my math is right that brings Home Depot's cost to...
[($10.00 / 60) x 3] x 2 = $1.00.
I admit after doing the math that's a little disappointing. A dollar. But we only paid six one hundredths of that dollar... that is impressive.
2 comments:
you are a nerd.
consider this as well (to add onto yo' deal makin' self) - The Home Depot (THD) also pays a portion of their employee's taxes as well as social security. Let's lowball this and say it's 20% (generally matching dollar for dollar what the employee is paying). So, 2 employees = $4/hr.
On top of that, we know that nothing happens on its own - the bolts are there because someone stocked them.
In addition, we could add some unknown amount for the percentage of space taken up by the bolt multiplied by the $$ / square foot that THD is paying on their lease of the building.
Moreover, there are other overhead costs: Liability insurance, transportation costs, contents insurance coverage for the stre, the cost of a security system and / or a guard to watch over the store at night, the amount of electricity it took to replace warm / cold air that escaped when you entered the store, also, if it was an automatic door, the electricity and wear and tear there.
There are other transaction costs involved, and other things that come into play (for example, the opportunity costs of keeping a box of bolts there as opposed to a battery powered drill, or something dumb like that).
Seriously, when it comes down to it, you really stuck it to them harder than any of us can imagine!
Post a Comment