Author Topic: Why are these companies failing? (Read 1945 times)

240 is Back · « **on:** February 09, 2009, 09:32:38 AM »

Samson listed some companies that may be shutting down:

Quote from: SAMSON123 on February 09, 2009, 08:11:38 AM

RITEAID, CHRYSLER, SBARRO, SIX FLAGS, SIRIUS SATELLITE, KRISPY KREME, TRUMP ENTERTAINMENT CASINOS, BLOCKBUSTERS etc etc etc and that is not good news either.

Are they failing because 'the economy sucks', or just because they suddenly have an unwanted, obsolete product offering? Is this just normal capitalism?

Rite-aid charges too much and isn't all that more convenient than a walmart.

Chrysler sells shit cars.

Sbarro's pizza is too thin, and they pay mall rent.

Six Flags, well, people without lots of $ can't spend $400 on park tickets.

Siruis - really? All the free shit on the web and you want to bill me for radio? F.O.

Krispy Kreme - you sell an unhealthy product for 89 cents each in a time when a lot of people care about health.

Trump Casinos? Gambling is for fools.

Blockbuster, you have been made obsolete by netflix, direcTv, and the web. it's a pain in the ass to drive to a store to wait in line to pay $3.99 to some punkass. I can get the movie at Target for $15 and keep it forever, or for a few bucks on PPV.

Soul Crusher · « **Reply #1 on:** February 09, 2009, 09:36:08 AM »

1. Too much overhead
2. Mediocre products
3. Saturation of the market for those products.
4. People cutting back on spending for b.s.
5. Expensive leases.

Check out my posts on Celente. He says a lot of things you need to hear about these companies and why they are failing.

240 is Back · « **Reply #2 on:** February 09, 2009, 09:39:46 AM »

Quote from: 333386 on February 09, 2009, 09:36:08 AM

1. Too much overhead
2. Mediocre products
3. Saturation of the market for those products.
4. People cutting back on spending for b.s.
5. Expensive leases.

these are all valid points.

I just see it as plain capitalism. Nobody bailed out the horse carriage industries when autos took over, and people that built carriages learned to build cars.

headhuntersix · « **Reply #3 on:** February 09, 2009, 09:52:28 AM »

What do u guys do as regards these companies...

I have a Jeep so I guess I support Chrysler...I also have an Expedition so I support Ford as well.

We have CVS here and I'd generally go to Walmart or Target for stuff like that anyway.
Six Flags is so over priced...I spent 50 bucks on 3 hamburgers drinks and fries....another 30 and I could go to Ruth Chris and get 2 full course meals.
Bite ur tong on Sbarros'.....if u live in fly-over country where pizza sucks...thats all u have if u want New York style.
I have sirius...i think I pay 30 bucks for 6 months.
I don't gamble and I use netflix.
Krispy Creme oversaturated the market...

JOCKTHEGLIDE · « **Reply #4 on:** February 09, 2009, 09:54:33 AM »

Quote from: 240 is Back on February 09, 2009, 09:32:38 AM

Blockbuster, you have been made obsolete by netflix, direcTv, and the web. it's a pain in the ass to drive to a store to wait in line to pay ~~$3.99~~ $6.99 to some punkass. I can get the movie at Target for $15 and keep it forever, or for a few bucks on PPV.

FIXED the blockbuster rental charge,,,,

Soul Crusher · « **Reply #5 on:** February 09, 2009, 09:56:08 AM »

Sbarros is garbage and costs way too much.

Also, you would be SHOCKED to know how much these leases cost these companies for these locations.

There is no way they can make money. Its impossible.

240 is Back · « **Reply #6 on:** February 09, 2009, 09:58:57 AM »

Yeah, I see Sbarro's in the mall, but not near the food court. they're never busy. you can only mark up a slice of pizza so much. Mall rent ain't cheap.

$6.99 per rental? wow. i stopped renting years ago.

Soul Crusher · « **Reply #7 on:** February 09, 2009, 10:01:09 AM »

Quote from: 240 is Back on February 09, 2009, 09:58:57 AM

Yeah, I see Sbarro's in the mall, but not near the food court. they're never busy. you can only mark up a slice of pizza so much. Mall rent ain't cheap.

$6.99 per rental? wow. i stopped renting years ago.

There is a mall in Stamford CT, and my dad talked to a guy who has the pretzel stand.

He asked how much the rental per month was. My dad figured 3 or 4 k a month. Nope - 11k k per month.

He said he was shutting down because the rents were way too high.

Do you realize how many pretzels he has to sell just to cover that nut???

headhuntersix · « **Reply #8 on:** February 09, 2009, 10:02:39 AM »

A pizza debate..I like New York style and we don't have mom and pop pizza places like the north east does, in KC. Back home in Mass we had Papa Gino's. It all depends what u like but I can't eat Domino's or pizza hut. If I lived in NYC I'd weigh 350lbvs from the pizza and Italian pastry shops.

Blockbuster has alot of nerve charging between 4.99 and 6.99 a movie, for 2 days. Netflix is the best..15 bucks a month..3 movies at a time. I usually do 4 per week.

Again with the pizza....it must cost about 20 cents per pie for a chees and maybe 50 with everything. They charge 2.50 a slice but I'm sorta stuck.

Soul Crusher · « **Reply #9 on:** February 09, 2009, 10:06:49 AM »

Quote from: headhuntersix on February 09, 2009, 10:02:39 AM

A pizza debate..I like New York style and we don't have mom and pop pizza places like the north east does, in KC. Back home in Mass we had Papa Gino's. It all depends what u like but I can't eat Domino's or pizza hut. If I lived in NYC I'd weigh 350lbvs from the pizza and Italian pastry shops.

Blockbuster has alot of nerve charging between 4.99 and 6.99 a movie, for 2 days. Netflix is the best..15 bucks a month..3 movies at a time. I usually do 4 per week.

Again with the pizza....it must cost about 20 cents per pie for a chees and maybe 50 with everything. They charge 2.50 a slice but I'm sorta stuck.

You are not paying for pizza.

You are paying for:

1. Their lease payments
2. Insurance
3. Payroll
4. Advertising
5. Supplies
6. Telephone
7. Franchise Fees
8. Workers Comp.

And

9. Hopefully a little left over for the owner.

The pizza is the least costly thing in the equation.

headhuntersix · « **Reply #10 on:** February 09, 2009, 10:15:05 AM »

Well all I want is a decent slice of Pizza.

JOCKTHEGLIDE · « **Reply #11 on:** February 09, 2009, 01:49:03 PM »

Quote from: headhuntersix on February 09, 2009, 10:02:39 AM

A pizza debate..I like New York style and we don't have mom and pop pizza places like the north east does, in KC. Back home in Mass we had Papa Gino's. It all depends what u like but I can't eat Domino's or pizza hut. If I lived in NYC I'd weigh 350lbvs from the pizza and Italian pastry shops.

Blockbuster has alot of nerve charging between 4.99 and 6.99 a movie, for 2 days. Netflix is the best..15 bucks a month..3 movies at a time. I usually do 4 per week.

Again with the pizza....it must cost about 20 cents per pie for a chees and maybe 50 with everything. They charge 2.50 a slice but I'm sorta stuck.

dont forget netflix gives you unlimited viewing on xbox 360 for their older movies I mean unlimited literally I watch the same movies (barney movie,,spiderman cartoonz, hopla,,,) 3x/day over and over for the past 60 days now or so since xbox first gave the idea to have netflix on xbox.

Grape Ape · « **Reply #12 on:** February 09, 2009, 01:54:47 PM »

SIRIUS needed to change their model. The company bleeds money. They actually were losing money on every new subscriber.

Plus, they've accumulated a lot of debt, and there are concerns on whether they'll be able to re-finance that debt as it comes due. That's when the stock really started tanking.

If they can re-finance, the synergies they experience with XM may help them survive.

Eyeball Chambers · « **Reply #13 on:** February 09, 2009, 01:56:11 PM »

Quote from: 240 is Back on February 09, 2009, 09:32:38 AM

Samson listed some companies that may be shutting down:

Are they failing because 'the economy sucks', or just because they suddenly have an unwanted, obsolete product offering? Is this just normal capitalism?

Rite-aid charges too much and isn't all that more convenient than a walmart.

Chrysler sells shit cars.

Sbarro's pizza is too thin, and they pay mall rent.

Six Flags, well, people without lots of $ can't spend $400 on park tickets.

Siruis - really? All the free shit on the web and you want to bill me for radio? F.O.

Krispy Kreme - you sell an unhealthy product for 89 cents each in a time when a lot of people care about health.

Trump Casinos? Gambling is for fools.

Blockbuster, you have been made obsolete by netflix, direcTv, and the web. it's a pain in the ass to drive to a store to wait in line to pay $3.99 to some punkass. I can get the movie at Target for $15 and keep it forever, or for a few bucks on PPV.

Interesting post!

loco · « **Reply #14 on:** February 09, 2009, 01:59:09 PM »

Because they run on debt, try to borrow their way out of debt, and have no emergency fund stashed away.

This applies to governments too.

Soul Crusher · « **Reply #15 on:** February 09, 2009, 02:00:15 PM »

Quote from: loco on February 09, 2009, 01:59:09 PM

Because they run on debt, try to borrow their way out of debt, and have no emergency fund stashed away.

This applies to governments too.

These businesses are all a sham anyway and theonly one who makes money is the original Franchisor.

Dos Equis · « **Reply #16 on:** February 09, 2009, 02:12:11 PM »

Quote from: loco on February 09, 2009, 01:59:09 PM

Because they run on debt, try to borrow their way out of debt, and have no emergency fund stashed away.

This applies to governments too.

Ding! That about sums it up. I see businesses borrowing money to make payroll (including paying executives' salaries) all the time. A recipe for disaster.

Soul Crusher · « **Reply #17 on:** February 09, 2009, 02:13:44 PM »

Quote from: Beach Bum on February 09, 2009, 02:12:11 PM

Ding! That about sums it up. I see businesses borrowing money to make payroll (including paying executives' salaries) all the time. A recipe for disaster.

Yup. Some of my construction clients are factoring receivables at this point.

hmontaq · « **Reply #18 on:** February 10, 2009, 05:48:37 AM »

As a former buisness owner dont forget the skull crushing taxes!!!

240 is Back · « **Reply #19 on:** February 10, 2009, 06:07:32 AM »

UBS Plans to Cut Jobs, Predicts Return to Profit in 2009 After Record Loss

Bloomberg.com

This financial firm cut the fat, and will now be profitable. Capitalism as its finest

Soul Crusher · « **Reply #20 on:** February 10, 2009, 06:09:19 AM »

Quote from: 240 is Back on February 10, 2009, 06:07:32 AM

UBS Plans to Cut Jobs, Predicts Return to Profit in 2009 After Record Loss

Bloomberg.com

This financial firm cut the fat, and will now be profitable. Capitalism as its finest

They are not returning to anything. They are very exposed to the sub-prime mess.

shootfighter1 · « **Reply #21 on:** February 10, 2009, 06:34:22 AM »

Real estate in general is too high. Rent for plaza stores went up far too much in the last 10 yrs.
Taxes on small businesses are way too high. Its getting to be that the only companies who operate are huge chains with tons of capital.

OzmO · « **Reply #22 on:** February 10, 2009, 09:06:37 AM »

Quote from: 240 is Back on February 09, 2009, 09:32:38 AM

Samson listed some companies that may be shutting down:

Are they failing because 'the economy sucks', or just because they suddenly have an unwanted, obsolete product offering? Is this just normal capitalism?

Rite-aid charges too much and isn't all that more convenient than a walmart.

Chrysler sells shit cars.

Sbarro's pizza is too thin, and they pay mall rent.

Six Flags, well, people without lots of $ can't spend $400 on park tickets.

Siruis - really? All the free shit on the web and you want to bill me for radio? F.O.

Krispy Kreme - you sell an unhealthy product for 89 cents each in a time when a lot of people care about health.

Trump Casinos? Gambling is for fools.

Blockbuster, you have been made obsolete by netflix, direcTv, and the web. it's a pain in the ass to drive to a store to wait in line to pay $3.99 to some punkass. I can get the movie at Target for $15 and keep it forever, or for a few bucks on PPV.

In some of the cases you listed the market place is evolving, Siruis, Blockbuster, Krispy Kreme, rite aid are victims of it.

The others are because of the economy as people are just not spending the way they used to due to fear i guess: Trump Casinos, Chrysler, Six Flags. In the case of Sabarros, the mall rents are too high.

Also Shoot, had a great point as he suggested small business is more and more getting squeezed out.

Soul Crusher · « **Reply #23 on:** February 10, 2009, 09:08:04 AM »

Quote from: OzmO on February 10, 2009, 09:06:37 AM

In some of the cases you listed the market place is evolving, Siruis, Blockbuster, Krispy Kreme, rite aid are victims of it.

The others are because of the economy as people are just not spending the way they used to due to fear i guess: Trump Casinos, Chrysler, Six Flags. In the case of Sabarros, the mall rents are too high.

Also Shoot, had a great point as he suggested small business is more and more getting squeezed out.

You either have to be very massive to the point where you get govt subsidies and contracts, or small enough to have low overhead and survive that way.

Those in the middle are going to get run over.

240 is Back · « **Reply #24 on:** February 10, 2009, 09:12:02 AM »

they simply offer something frivolous that ppl don't want.

$5 coffee is asinine.