Jump to content
House Price Crash Forum
Sign in to follow this  
Mikhail Liebenstein

Sign Of The Times: Serco Asked Suppliers For 2.5% Cash Rebate

Recommended Posts

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

Share this post


Link to post
Share on other sites

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

Ah Serco who ran the Manchester metrolink and nearly ran it into the ground even with excessive fares? Heh they skimped so much on the maintenance that the metrolink derailed and went past the wear limits everywhere. Hell the ride from Bury to Whitefield was like riding over speed humps it was so rough due to cutting corners and having surly and racist ticket inspectors.

Share this post


Link to post
Share on other sites

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

Reading the article, seemed like a thinly veiled and nasty threat to its suppliers.

Share this post


Link to post
Share on other sites

Ah Serco who ran the Manchester metrolink and nearly ran it into the ground even with excessive fares? Heh they skimped so much on the maintenance that the metrolink derailed and went past the wear limits everywhere. Hell the ride from Bury to Whitefield was like riding over speed humps it was so rough due to cutting corners and having surly and racist ticket inspectors.

Thought you were referring to a girl I once knew :P

Share this post


Link to post
Share on other sites

Now here is one business that could be on for a tough time.

http://www.telegraph.co.uk/finance/yourbusiness/8101899/Serco-retracts-cash-rebate-demand.html

Now its one thing to try and reduce existing contracts, but this action looks like it was retrospective. My understanding of Serco's business model is that they operate on tight margins on very large contracts. Clearly with the Government slashing 10, 20, 30%, its going to be tough and this move (now retracted) seems to evidence that.

My experience of Serco is that they operate on much bigger margins than they tell you. They'll lie to both clients and employees in pursuit of those margins.

Example: contracting a software developer to JRC in Italy, about 1993. They paid him £14k but specified in the contract that they were paying £17k. Came to light 'cos the programmer and the client touched upon the subject in casual conversation.

I could tell of much bigger discrepancies than that, if I were to recall my own experience.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.