04 September 2011

Ms.D.Vine -- Overheads

The other day, when out cruising, there was a nasty scraping noise as I left the lock. Looking back I could see a metre long strip of iron had become detached from the lock entrance and was bent at 90 degrees fouling the entrance / exit to the lock.

A call to the AV emergency helpline was re-directed to the local office. There I was asked if the problem was really urgent as it would cost £1000 to send someone out on a Saturday. Now I reckon I could hire a van, go to a DIY store, buy the tools required, pay myself a decent wage and still fix the problem for £200. So where does the £1k come from?

If the overheads of AV(2010)PLC are such that real costs are multiplied by 5 to cover overheads, then no wonder there are problems. An indication of a bloated structure? Perhaps the ratio of "Talkers" to "Doers" is 5:1 too!