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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by Ethanbrodieon Feb 13, 2012 10:48pm
291 Views
Post# 19529228

CUT THE COSTS

CUT THE COSTS

The biggest issue in my mind is that 360 solutions has been around for a year. For all of their clients, they must have been exposed to this option by now, and there is no earnings traction. This is a very big problem. It did not start early, so tellier kept pushing it later and later in the year to please shareholders. When they cut their guidance, I guess that was the real sobering pill I should have and everyone else should have swallowed. The expenses in my mind are incredible for a buisness that is going down in sales. I think what could save this company is a new ceo specialized in reducing costs and optimizing efficiencies, go to the banks with the new plan of continued online growth with major cost reductions. (I think they could save a few hundred million a year minimum). it seems like the costs are getting out of control. They need to realize they cant have the best buildings in the best locations, have the best perks etc.. Its time to CUT COSTS. I believe a while ago on a conference call that tellier was boasting on how many sales people he had  and wanted to increase the amount. Hey, why not reduce the salesforce by 30 percent, keep the best ones, and offer them higher commissions, motivate them more to not only make up the slack for the 30 percent lost, but give them a gain of 15% more commission. So what you have is this: 15% reduced labor costs benefits etc.. reduced office expenses, and have increased sales. Sure we can say, well I think they would have thought of that.. but in reality I dont think they have. I work for a large firm where there is an enormous waste of time going on in the office. If I had the option of having a little more to do during the day (which im wasting anyway) a higher number of potential buyers  (because im taking 30% more on for my area) and higher commissions, you bet im going to be one happy guy and be motivated... Maybe im just crazy, but this is just an example of why tellier needs to go, and an innovator to step up and make a cost reducing plan. this business can definately be a cash cow if the right ceo is in place. All you have to do is convice the banks, and they will extend your loans Especially when you replace an outrageously overpaid ceo with one that has a track record of success with reducing costs. Why are we paying for so much advertizing/marketing when there are 1500 sales people and everyone knows the yellow pages brand????  you kinow its been around for 100 years..... 

Bullboard Posts