Last one Wins... .Part 3

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Last one Wins... .Part 3

Postby Mountaineer Buc » Thu Jul 12, 2018 12:49 pm

Anybody seen Buc2 today? somebody should go check his office....oh, wait. I forgot. He has a cubicle.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 1:24 pm

I haven't seen that ****er all morning. Probably procrastinating instead of getting any work done.
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Re: Last one Wins... .Part 3

Postby Mountaineer Buc » Thu Jul 12, 2018 1:35 pm

Buc2 wrote:I haven't seen that ****er all morning. Probably procrastinating instead of getting any work done.

I know the feeling. Filed sales tax though, so I got that going for me. But I gotta bust out the cash flow projection now.
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Re: Last one Wins... .Part 3

Postby Kress » Thu Jul 12, 2018 1:45 pm

Quit gabbing and get back to work. I need those T.P.S. reports on my desk by 5.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 1:46 pm

Mountaineer Buc wrote:
Buc2 wrote:I haven't seen that ****er all morning. Probably procrastinating instead of getting any work done.

I know the feeling. Filed sales tax though, so I got that going for me. But I gotta bust out the cash flow projection now.

:lol: I just filed our last state sales tax report (WV of course) for the month myself. Next up, commission calculations & reports for the July pay period. After that, I get to play with inventory ****.
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 1:59 pm

I like inventory **** but I ****ing hated the accountants who gave me bullshit PPV numbers
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Re: Last one Wins... .Part 3

Postby Mountaineer Buc » Thu Jul 12, 2018 2:01 pm

Zarniwoop wrote:I like inventory **** but I ****ing hated the accountants who gave me bullshit PPV numbers

Hey. My official title is Financial Controller which means I am in control of the finances. You get the money I give you.
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 2:09 pm

I never understood why it was accountants who set the the standard cost. Most I worked with had no clue whatsoever about the products I bought.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:09 pm

Zarniwoop wrote:I like inventory **** but I ****ing hated the accountants who gave me bullshit PPV numbers

There's PPV (actual cost) variances, market cost variances and weighted average cost variances. There's no such thing as bullshit variances.
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 2:11 pm

The standards they set were bullshit. I bought tons of steel products, rather than looking at the forecasted prices of ore they looked backwards at historical prices of the products themselves


It was a stupid way to do it ... but I’m sure very expedient for them so they had extra time to play with their pocket protectors and calculators

:P
Last edited by Zarniwoop on Thu Jul 12, 2018 2:12 pm, edited 1 time in total.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:12 pm

Zarniwoop wrote:I never understood why it was accountants who set the the standard cost. Most I worked with had no clue whatsoever about the products I bought.

Any company that knows what they're doing doesn't have accountants set costs. That's what our purchasing dept does. Accountants use WAC (weighted avg cost) which is mandated by most banks that loan companies money and, of course, the IRS. Banks want to know the value of a companies inventory. That's why they want weighted avg cost.
Last edited by Buc2 on Thu Jul 12, 2018 2:14 pm, edited 1 time in total.
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 2:13 pm

Buc2 wrote:
Zarniwoop wrote:I never understood why it was accountants who set the the standard cost. Most I worked with had no clue whatsoever about the products I bought.

Any company that knows what they're doing doesn't have accountants set costs. .




Exactly
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 2:14 pm

My company was all fucked up. When they introduced new products they had me (Purchasing manager) forecast usage, not the sales dept.

I didn’t even know who are end customers were let alone be able to predict their usage
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:17 pm

Zarniwoop wrote:
Buc2 wrote:Any company that knows what they're doing doesn't have accountants set costs. .




Exactly

I don't even know wtf we sale. When I work with inventory, I use item #'s, not item names. lol Now our inventory analyst accountant...that's a different story. He knows what all this **** is. He's also involved with cycle counts and all that other inventory related crap. He actually visits all our locations on a regular basis. Me. I just reconcile the GL accounts that have to do with inventory.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:18 pm

Zarniwoop wrote:My company was all fucked up. When they introduced new products they had me (Purchasing manager) forecast usage, not the sales dept.

I didn’t even know who are end customers were let alone be able to predict their usage

They must be out of business by now.
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 2:19 pm

Well that seems much more reasonable then my old set up

My company still made money hand over fist even with its idiocy. Our products were the best in the business. That type of innovation allows for stupidity elsewhere



—-

If you have a good trailer that hauls just about anything odds are it has an axle from the company I worked for
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:27 pm

Zarniwoop wrote:Well that seems much more reasonable then my old set up

My company still made money hand over fist even with its idiocy. Our products were the best in the business. That type of innovation allows for stupidity elsewhere



—-

If you have a good trailer that hauls just about anything odds are it has an axle from the company I worked for

If they had a fairly exclusive product, I can sorta see why accountants set the price. They just used some sort of cost/benefit model and priced their product to maximize profit. My company is in a very competitive market and that type of price setting could never work.
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Re: Last one Wins... .Part 3

Postby Mountaineer Buc » Thu Jul 12, 2018 2:30 pm

Buc2 wrote:
Zarniwoop wrote:Well that seems much more reasonable then my old set up

My company still made money hand over fist even with its idiocy. Our products were the best in the business. That type of innovation allows for stupidity elsewhere



—-

If you have a good trailer that hauls just about anything odds are it has an axle from the company I worked for

If they had a fairly exclusive product, I can sorta see why accountants set the price. They just used some sort of cost/benefit model and priced their product to maximize profit. My company is in a very competitive market and that type of price setting could never work.

My company is small enough and not in manufacturing so price setting is based on arbitrary margins. "I want to make $2 a gallon on jet fuel and $1.75 on Avgas." so I set the prices based on those margins and let the commodity price move it every week.
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Re: Last one Wins... .Part 3

Postby Zarniwoop » Thu Jul 12, 2018 2:34 pm

Buc2 wrote:
Zarniwoop wrote:Well that seems much more reasonable then my old set up

My company still made money hand over fist even with its idiocy. Our products were the best in the business. That type of innovation allows for stupidity elsewhere



—-

If you have a good trailer that hauls just about anything odds are it has an axle from the company I worked for

If they had a fairly exclusive product, I can sorta see why accountants set the price. They just used some sort of cost/benefit model and priced their product to maximize profit. My company is in a very competitive market and that type of price setting could never work.



the standard cost I was talking about was the cost of the products I bought from vendors then used in manufacturing, not the cost of the products we sold. So lets say the accountants thought when ever i bought a 4" steel u-hanger it should cost $4.00, when in actuality it cost $4.75 or $3.50 or something. In my yearly review I would get "graded" against the PPV (the price I paid for goods versus the standard cost of those goods).

Luckily the Operations VP agreed with me that the method was complete BS and basically just gave me a 5/5 every year on that regardless of what the PPV report said. That being said, I had quite a few tense discussion with our corporate controller about it.




EDIT -- don't get me wrong, I am not at all suggesting that I personally should have set the standard cost that my negotiating skills were eventually going to be assessed on, I just thought our way (particularly the specific accountants we used) was dumb. It bore no resemblance to the real world. Nearly as many standard costs were set way too high as they were way too low. So many of my item PPV's were over 10% wrong.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:42 pm

Mountaineer Buc wrote:
Buc2 wrote:If they had a fairly exclusive product, I can sorta see why accountants set the price. They just used some sort of cost/benefit model and priced their product to maximize profit. My company is in a very competitive market and that type of price setting could never work.

My company is small enough and not in manufacturing so price setting is based on arbitrary margins. "I want to make $2 a gallon on jet fuel and $1.75 on Avgas." so I set the prices based on those margins and let the commodity price move it every week.

That makes sense as well, MB. My company, however, is a wholesale distributor of commercial roofing, HVAC and related machinery. Oh... and steel too. We sell thousands of different products. Every product has it's own profit margin in order to be competitive with other distributors, so we can't set prices based on arbitrary margins. Obviously, the CFO and others have come up with an average profit margin that needs to be met in order to remain profitable. They use some sort of software to help them decide what mix of products are set to what margin.
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Re: Last one Wins... .Part 3

Postby Mountaineer Buc » Thu Jul 12, 2018 2:50 pm

Buc2 wrote:
Mountaineer Buc wrote:My company is small enough and not in manufacturing so price setting is based on arbitrary margins. "I want to make $2 a gallon on jet fuel and $1.75 on Avgas." so I set the prices based on those margins and let the commodity price move it every week.

That makes sense as well, MB. My company, however, is a wholesale distributor of commercial roofing, HVAC and related machinery. Oh... and steel too. We sell thousands of different products. Every product has it's own profit margin in order to be competitive with other distributors, so we can't set prices based on arbitrary margins. Obviously, the CFO and others have come up with an average profit margin that needs to be met in order to remain profitable. They use some sort of software to help them decide what mix of products are set to what margin.

Oh, yeah. When you have multiple products at multiple price points you gotta sit down and figure each one out. We kinda have that with maintenance parts, but their bread and butter is labor so we just set 20% over cost.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:50 pm

Zarniwoop wrote:
Buc2 wrote:If they had a fairly exclusive product, I can sorta see why accountants set the price. They just used some sort of cost/benefit model and priced their product to maximize profit. My company is in a very competitive market and that type of price setting could never work.



the standard cost I was talking about was the cost of the products I bought from vendors then used in manufacturing, not the cost of the products we sold. So lets say the accountants thought when ever i bought a 4" steel u-hanger it should cost $4.00, when in actuality it cost $4.75 or $3.50 or something. In my yearly review I would get "graded" against the PPV (the price I paid for goods versus the standard cost of those goods).

Luckily the Operations VP agreed with me that the method was complete BS and basically just gave me a 5/5 every year on that regardless of what the PPV report said. That being said, I had quite a few tense discussion with our corporate controller about it.




EDIT -- don't get me wrong, I am not at all suggesting that I personally should have set the standard cost that my negotiating skills were eventually going to be assessed on, I just thought our way (particularly the specific accountants we used) was dumb. It bore no resemblance to the real world. Nearly as many standard costs were set way too high as they were way too low. So many of my item PPV's were over 10% wrong.

Sounds like they used a WCWW system (Whatever Cost We Want). That sounds crazy. Damned good thing they made a product they could sell for pretty much whatever they want to sale it for.
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 2:52 pm

Mountaineer Buc wrote:
Buc2 wrote:That makes sense as well, MB. My company, however, is a wholesale distributor of commercial roofing, HVAC and related machinery. Oh... and steel too. We sell thousands of different products. Every product has it's own profit margin in order to be competitive with other distributors, so we can't set prices based on arbitrary margins. Obviously, the CFO and others have come up with an average profit margin that needs to be met in order to remain profitable. They use some sort of software to help them decide what mix of products are set to what margin.

Oh, yeah. When you have multiple products at multiple price points you gotta sit down and figure each one out. We kinda have that with maintenance parts, but their bread and butter is labor so we just set 20% over cost.

Yeah... our machinery branch does that. They don't just sell machines, they also repair customer machines.
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Re: Last one Wins... .Part 3

Postby Super K » Thu Jul 12, 2018 2:55 pm

This thread belongs in The Nerdery...just sayin..
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 3:04 pm

A nerd started this thread. Just saying. :D
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Re: Last one Wins... .Part 3

Postby Mountaineer Buc » Thu Jul 12, 2018 3:09 pm

Buc2 wrote:A nerd started this thread. Just saying. :D

It was the chaos of having another LOW thread for no real reason. I'm mad I tell you, MAD
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Re: Last one Wins... .Part 3

Postby Buc2 » Thu Jul 12, 2018 3:26 pm

Mountaineer Buc wrote:
Buc2 wrote:A nerd started this thread. Just saying. :D

It was the chaos of having another LOW thread for no real reason. I'm mad I tell you, MAD

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