Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (38944)	12/10/1998 5:10:00 PM
From: Ilaine	Respond to of 132070

>>>>>For the intermediate to longer term, in some cases, it would seem that when production gets much larger than demand, it would be healthier overall for a some assets simply not to be used -- rather be written off and shut down.<<<<< The fixed costs of production are pretty much the same, month to month, year round, and include salaries, insurance, property taxes, etc. It is short-sighted to shut down production due to what may be a temporary decline in production. Once demand picks up, you would have to start from scratch, build new productive capacity, hire and train new people, etc. Since it takes a while to do that, your competitors get the work. Better to run at half-capacity or whatever, get some money in, try to at least make your overhead. Send your sales force out, offering bargains. CobaltBlue, seven years in the printing trade