Extra Point

by Jack Tenney, Publisher

August 2006

Counting the days

August is a month yet untouched by a Monday holiday. It’s a long one: 31 days, the max. Therefore, it must be the most productive month for businesses, right?

Not to bore you with a bunch of inside-bean-counting stuff, but a “calendar variance,” like the economist’s seasonal adjustment, is a way to fairly evaluate (or burden) every productive moment for charges not incurred directly. You know, like rent, monthly salaried employees and firewood.

Consider how difficult it is to make a profit in February, what with its being the shortest month (even on every fourth or leap year), a jump-around holiday, and a constant need to keep the stove door glowing.

Go ahead, grab a calendar. February ’06 had 19 work-week days, one holiday and eight weekend days. August ’06 will have 23 work-week days as well as eight weekend days. (Yes, I am ignoring Bennington Battle Day, because I don’t work for the state.)

Do you do percentages? Isn’t that more than a 20 percent increase in work days during August than in February? And how many cords of wood are needed to keep the pipes from bursting in February? A few hundred bucks worth more than in August, don’t you think?

Keeping it simple, assume you have to pay monthly bills of $30,000. Even before you fret about the firewood, you’ll need $274.61 more profits per working-week day in February than in August. How do you manage?

It’s really not that difficult. After all, we’re business people!

Since February is so dark and so cold, work a couple of nights and a weekend or two in that month and/or take your vacation in August.

That should do it.