I'm sure someone much smarter than me can do a better job at finding or verifying this info but lets take a look at how many employees companies like ecotech marine actually employ and what type of earnings they actually report? Maybe this is not accurate because according to this they had an annual revenue of 4.7 million last year and only have 27 employees? Those 27 employees have an estimated revenue of $175,000 a year...
Let me help:
1 - you are reading that wrong. "Revenue per employee" is not their salary, it is the company REVENUE divided by the number of employees. It is a metric to judge the business revenue and employee footprint against other companies.
2 - Revenue is GROSS intake. Everything that they pay for from materials, to advertising, to lawyers, to utilities, to shipping, to lawsuit settlements, fines, cost of damaged goods and returns, salaries, etc. EVERYTHING comes out of that REVENUE.
If theses figures are even remotely close it doesnt sound like any struggling going on to me?
Should employees
struggle so that you can have cheaper products?
You really think they have that massive overhead and are manufacturing their own product? I dont. Especially when I see many of the job listing they have advertised being marketing and social media related.
Again - I think you are very naive to what it costs to run a company like this. Let's use some round numbers:
30 Employees - a few make 200K a year and a few make 50K a year. Lets call the average from CEO to Janitor $75,000 a year. That is $2.25 Million dollars in paychecks. Those employees have benefits and there are wage taxes and penalties for unemployment, etc. Lets call that 30%. That is another $675,000. So we are now at $2.93 million and we have not paid for rent, utilities, materials, shipping, a single lawyer, a single lawsuit, a single ad unit, a single pound of material, a single sheet of paper, pen or computer, no garbage bags or light bulbs, or floor mats, NOTHING but labor cost and we only have $1.77 million left! We have not paid any local, state or federal taxes, permits, fees or services (cleaning, garbage, etc.).
The building is 100,000 square feet. Rent or Buy, that is a tremendous capital outlay and is listed at over $1.6 million. Interest on the loan? What about the cost of fuel and vehicles, equipment such as machinery? These are all assets that are tax and devalue over time and/or need to be replaced often enough to be a serious burden.
We still have not manufactured a product yet... Who pays for the mistakes, the returns, the theft?
Great - now we finally sell some stuff. But we have to cover the warrant, then even after that the customer support.
If you insist we can put number to all of this and then compare that to the "Insane margin" these folks are making and figure out what sizes yachts they can't afford to buy.
I'm willing to bet there is in fact somef expensive toys and yachts involved here, even if its through some other massive conglomerate that may own them. Believe what you want folks.
There is no massive conglomerate. There is a capital investment group that is certainly taking profit and reducing costs to do so. But here is the double edged sword.... EcoTech and partner companies would not exist without them.... WHY you ask??? Because the market is too small and saturated for a small manufacturer to be able to stay above water, especially when being undercut by overseas competition that has a TINY fraction of the overhead. This hobby (every hobby) is littered with the corpses of companies that got in way over their heads.