PHOENIX PHIL
AH ambassador
clearing $1500 profit is pretty freaking easy. if ur a big operation over head is more and after all bills are paid u profit $1500. however if you have a big property and u dont turn much volume then u have to charge more per client. in that case your clients pay for your smaller business.
free lance guys can get better rates. they can go to the guys who have high end operations with little running costs and get things cheaper.
let me try to put it to you in my business terms.
i can get u an oil completions rig for $200/hr. my rig was about $1.1 million and only requires about $1000/month upkeep. my competitors have 40 year old rigs and have $15,000 per month in maintenance costs and usually much more. so basically i can work cheaper because quite frankly i have a smarter operation. if you have to complain about fence upkeep when your hands are only paid $2/day then none of us want to hear about it. my hands get $200-$600 per day. truly that on for size.
i hear so many africans complain about their running cost but fail to mention wages are only $2/day. some people just cant handle smaller profits and throw so much out there to justify higher prices. when business gets bad enough that your forced to lower prices just to live i think we will all find the spaces for it. most of the space any of us need is simply in our minds.
I'm not African and nor was I complaining. And I also have a EE degree so I know math fairly well also. You gave me a lot of answer to a simple question. The question was only related to a narrow definition of profit versus a broader one.
As far as your business explanation I guess I'll just have to trust you that your $1.1M dollar investment in the end even if financed allows you to work at cheaper cost and still compete if not beat your competitors. I also deal with capital equipment right at bout the same cost and know how that works. So no need to be condescending.
What I do find confusing for a guy who is content just to put a roof over his house and food on the table, how is it that you're even contemplating an African safari? Low end or high end, it's not exactly like a weekend at the beach.