Did WPP and Dell spend a quarter billion on Enfatico?
February 21, 2010
Is there a way to get the actual amount spent on this disaster?
Between Dell and WPP , what literally was allocated to this project, the 10 year leases, the 1000 apple computers bought for Dell, the estimated 600 people on payroll …. etc etc…
Dell said that they would allocate $4.5 billion to the project… but the chances are remote that they got anywhere near that…
That being stated they DID hire hundreds of people, took out roughly a dozen leases, bought nearly a 1000 apple machines… etc etc… they spent money.. big money..
Dell doesn’t line item “Money wasted in Advertising” on their balance sheet… so I guess I need to make a spreadsheet and add it up with estimates..we’re going to do this with really rough numbers because WPP and Dell both refuted our requests for hard numbers due to the embarrassing nature of the question.
But I am guessing it went into at least $150,000,000 to $300,000,000 million range.
The 100,000 Sf office in Manhattan alone would be millions.
My guess is they hired at least 600 people when all the press releases are added up.. if the average salary is $40,000 (when you factor in Boon’s salary with the staffers making $10 bucks an hour)…
So 600 x 40,000 = $24,000,000
Add the customary 30% for payroll taxes, health insurance etc etc…
You got an additional $7,200,000
So you’re looking at roughly $30,000,000 a year for 3 years…
That’s $90,000,000 in payroll alone.
A dozen office spaces at 100,000 a month…
That comes out to be $14,400,000 (12 x 100,000 x 12 months)
So now we’re on or about $105,000,000 (roughly)
Let’s add it an additional 2 million for apple machines, apple software, copies of photoshop, digital cameras, photo equipment, ect etc.
Now you’re getting close to the 110,000,000 mark…
3 years…. of this mess…
How much do desks, phone systems and chairs cost? They didn’t buy that stuff at the thrift store…
I would say between $150,000,000 and $300,000,000 was blown on this project.. that produced one ad in India worth about $2,000 bucks with a small advertising agency.
How many people’s job could be saved with $300,000,000. What new products would Dell have launched with an additional $300,000,000 in the bank?
Yes it’s known that the Enfatico disaster happened.. but did anyone actually look at how much this hurt everyone.. the lost potential income from new products, the mess in terms of lack of advertising. This was a disaster that will have repercussions for the next decade or longer at minimum with the landlord of the buildings that Enfatico signed a 10 year lease with.
So here’s the challenge WPP and Dell .. tell us exactly what the shareholders lost on this?
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