Companies desperate to save on expenses
I just wanted to share an observation...We are starting to see the cracks in the economic foundation. The stimulus packages that the government used to flood the economy have dried up for now. What was holding the economy together is no more, and the effect of the stimulus is, for the most part, limited. When you start to remove the patient's drug, the problems the drug was treating starts to come back. Thus, the optics showed a promising economic recovery when instead, it was nothing but the high from the stimulus-induced drug.
Now the American economy that is worth saving will not get the much needed next round of stimulus because the politicians are bickering and extremely divided over supreme court chairs, elections, and how to allocate to a stimulus package. Americans are the big loser in these fights, not the politicians.
So how is Corporate America fairing?
I am a member of Lifetime Fitness. I don't have current information on them with one exception. I know that they were sold in 2015 for 4 billion dollars. So, with the assumption of five years worth of growth, that 4 billion is much higher. Of course, the gym and fitness industry is hurting from the pandemic. Are you hurting enough to make small changes that would end up maybe running off your customer base? This is how desperate Lifetime must be. I received an email saying that they are trying to cut costs. I was expecting the next few lines to stay something dramatic. However, they are cutting transaction costs on credit card payments. What does that mean? If you are paying your monthly dues by credit card, you agree to pay 2.25% higher to cover the amount of the transaction costs. Another option you have is to change to another form of payment and not have to pay any additional amount of money. If only I could find the numbers and do the math on that cost savings! It would be minuscule on a company that size. You can't fault them for trying everything since the little things add up. This clearly shows that yes, these are desperate moves in some very desperate times for sure.