RaceCafe..#1...Tipsters Thread.... Share Your Fancies For Fun...Lets See Who The Best Tipsters Here Are.
Barry Lichter

Revealed: Where the TAB staff cuts are being made

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“A separate review is underway on the executive leadership team whose top six members took home $2.5 million between them last season.

RITA board members earned $263,667 for the 14 meetings they attended last season”.

 

A management team collectively earning less that $1mill could do the job.

Seriously if these numbers are legit this is just BS. So these clowns are collectively paid $18k to attend a single Board meeting!

No wonder the industry is drowning. Outrageous sense of entitlement. 

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7 hours ago, Southland said:

Seriously if these numbers are legit this is just BS. So these clowns are collectively paid $18k to attend a single Board meeting!

No wonder the industry is drowning. Outrageous sense of entitlement. 

I wouldn't have thought that was overly extravagant.

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27 minutes ago, poundforpound said:

There is of course a solution.....it involves a chainsaw and a bit of corporate brutality .....I think the model I’m thinking of was named Dunlap ( mind you his career ended in shame so maybe he’s not a good example ) 

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17 hours ago, Ohokaman said:

Trackside presenters were supposedly having to re apply for fewer roles..

Popplewell, O’Connor, Cookson and one female have been on last few days so it would be interesting to know who missed out.

what have they been doing

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2 minutes ago, mikenz said:

what have they been doing

There was a local continuity presenter on one of the channels on Saturday. I have no idea why they feel the need to run the American racing throughout the day on a saturday when we have perfectly adequate racing coming in from Aussie. Even the country Aussie stuff is more interesting than a lot of our stuff, when it is actually going.

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 i havnt watched any trackside since last monday,went off it but before that was a good coverage considering the times we are in, as aussie made cuts to coverage as well, i did scan the sky channels though twice and just had music and the odds for the next 100 dollars pool  race, im not bothering with tab until they cut the ones making the cuts, a total cleanout is required to get back some faith.

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‘“But it proposes to freeze the qualifying criteria temporarily to hopefully retain as many elite punters as possible.”

Barry, I don’t know if this was a quote from a Rita press release or your summation of something relayed to you but, excuse my ignorance, what on earth does this mean

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Poundforpound mentioned administrative expenses above.  One thing he did not mention was expenditure on public relations.  Can anybody imagine what a PR consultant would be charging for what P for P does for himself, at his own cost, in such a brilliant manner.  The way he wipes those Labour politicians away is a sight to behold.  And similarly with those who have the temerity to call themselves journalists.  I love it.

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1 hour ago, Tauhei Notts said:

Poundforpound mentioned administrative expenses above.  One thing he did not mention was expenditure on public relations.  Can anybody imagine what a PR consultant would be charging for what P for P does for himself, at his own cost, in such a brilliant manner.  The way he wipes those Labour politicians away is a sight to behold.  And similarly with those who have the temerity to call themselves journalists.  I love it.

Yes he is doing a brilliant job getting rid of Labour. I suppose we just have to wait a few days for the polls to show the results of his efforts. How many days do you think it will take the polls to reflect his efforts wiping out Labour?

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19 hours ago, poundforpound said:

Here’s a fun fact for you ... it demonstrates the way corporates get bloated and become inefficient 

Our little business turns over 18 million per annum.

Our admin team costs us just over 100 grand a year, so say roughly 0.5% of turnover 

Our office is about 4 square meters ......we have one full timer and one part timer 

We have a tenant in a building we part own, they’re in hospo too, but they’re a publicly listed NSX company ( Good Spirits ) , their combined total turnover is 30 million a year across about ten outlets, and their admin costs are 3 million a year ....1 million of which is stock exchange compliance costs 

They have big flash commercial offices and a manager for everything

There’s the difference though......0.5% for a lean mean machine v 10% for a fat bloated corporate slug.........20 times more inefficient than we are......I guess racing is the same, sort of, ....bloated and unproductive at the admin level....lean and mean at the licensee level........

There is of course a solution.....it involves a chainsaw and a bit of corporate brutality .....I think the model I’m thinking of was named Dunlap ( mind you his career ended in shame so maybe he’s not a good example ) 

Many an organisation has fallen into the trap of getting too big ,too fast and taking their eye off the ball or finding that New Zealand can be a logistical and costly nightmare with some distance between major cities and a tricky piece of water separating the two islands and expensive transport.Expansion to give them economies of scale can backfire.

A business called Georgie Pie found that out.

When they were small they had a very successful business around Auckland and like HQ they were completely run out of a small office....they were in with their parent company that ran big Supermarkets.Very low overheads with a few field staff and small factory !

GP were a well known profitable Kiwi brand  in Auckland so they decided to expand. Obviously they had to widen their Office staff with more Accounting staff , Planners, Architects , Trainers , Equipment people etc and probably employed an expensive Marketing Agency.

With Sales soaring they had big Capital expansion with their own pie factory and set about acquiring real estate and erecting mainly cheaply built restaurant buildings.

Had they got more Frachisees to own more stores they may have succeeded but they only got a few so had to manage most of their stores remotely ,requiring more managers at Head Office.

Sales in some areas never took off and the trouble started and it didn't take long before they folded.....completely.

The TAB has similar problems with 67 Retail shops throughout NZ , a changing menu every day , and a mobile service to 60 odd race courses travelling throughout NZ to about 15 different towns/cities weekly. 

Some challenge. And up against spirited opposition , direct and otherwise.

They did make over $140 mill a year despite their perennial mis-management but made the mistake of giving it all to shareholders and beneficiaries each year.

What business can survive if sales/revenue virtually ceases overnight.

The bigger you are ,the harder you fall !

They need to rationalise , yes take the chainsaw out but make are they don't sever the crucial arteries that keep their business breathing !

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Another huge business risk is when you are relying on a few customers to provide a bulk of turnover at an OK margin.

The top 2% of elite customers gives 56% of turnover  at TAB......10% give 90%.

This situation is tricky.Easy to say ,well don't alienate the $1 each way punter on phone betting ,but the cost of servicing this hurt margins.

 New business  i.e. Young people only attracted to Sports betting which has lower margins...Good luck switching these to racing bets ,now a key objective !

Another real life example outside Racing was I had 2 x friends who made/supplied widgets to the NZ business in big red sheds,.

They paid $3 to my friends for their plastic widgets made in NZ with local staff...... Basically the red Shed made up most of business.

The Red Shed then said "we will now pay you only $1.50 for your widgets.....my friends pleaded ,it would send them broke !

Red Shed said ,well I can probably get them for $1.50 from China ,we will just send a spec......bye bye NZ business !

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