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sonic_tower t1_iuvl8kf wrote

Not dinging the chart (it's nice!), but

  1. I still don't know what Salesforce does.

  2. That is a sad profit margin, compared to the tech and oil companies that have been on this sub lately.

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Timbershoe t1_iuvpbzq wrote

Replying to Slowpre (#433,839)

I would assume that too.

For instance, they also build huge Salesforce skyscrapers around the world and rent out all but a couple of floors to other businesses. That’s a fixed asset that offsets gross profit and gives an enduring income.

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xCyanideee t1_iuvqs6i wrote

Just joined a new start up who uses SF. Reddit has read my mind it seems

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Anthonyeet t1_iuvr7r4 wrote

I only know salesforce due to f1

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lukeworldwalker t1_iuvtsl7 wrote

Replying to sonic_tower (#433,777)

Salesforce as a SAAS does a lot, let me tell you what my company does with it: every customer data is saved in the database, phone numbers, addresses, key decision makers, technical data.

Every call my sales reps place is done through salesforce, no need to dial numbers, and logged. Every quote we create comes through a SAP plugin in salesforce. Every order a customer places as well. Once the order is placed, we do the tracking of the shipment through a DHL or FedEx plugin in salesforce.

Customer subscriptions also run through SF for our services, renewals as well, customer complaints run through SF to our zen desk.

Basically Salesforce is the “operation system” for our multi billion dollar sales, order, customer services, business development and logistics departments.

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lukeworldwalker t1_iuvttd0 wrote

Replying to sonic_tower (#433,777)

Salesforce as a SAAS does a lot, let me tell you what my company does with it: every customer data is saved in the database, phone numbers, addresses, key decision makers, technical data.

Every call my sales reps place is done through salesforce, no need to dial numbers, and logged. Same with emails relevant spot sales. Every quote we create comes through a SAP plugin in salesforce. Every order a customer places as well. Once the order is placed, we do the tracking of the shipment through a DHL or FedEx plugin in salesforce.

Payment from the customer to our distributor and eventually us is also tracked through SF, but facilitated by a factoring system.

Customer subscriptions also run through SF for our services, renewals as well, customer complaints run through SF to our zen desk.

Need a code to give a customer a free test month? SF. Need some insights into a customer who is with a competitor? SF. Want to see how much commission you made on your sales this month? SF.

Basically Salesforce is the “operation system” for our multi billion dollar sales, order, customer services, business development and logistics departments. To run my 15 people sales department, I basically only need saleforce and slack. Two apps, that’s it.

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Padmei t1_iuvuy19 wrote

How does it only pay 6% in taxes? I pay 33% at least. Probably closer to 50% if we're comparing.

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CoasterRider_ t1_iuvwnue wrote

Does anyone actually like Salesforce? We use Salesforce for sales and service and it is the most buggy and slow platform I've ever used. We constantly complain but it seems like the response from Salesforce support is simply this is how it is.

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685327592 t1_iuvykh7 wrote

In my experience they take your existing software that works perfectly fine and then replace it with something new that is way less intuitive and missing key features.

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AdInternational7530 t1_iuvz7gy wrote

Replying to Padmei (#434,158)

Businesses have what is called permanent and temporary differences. Some things can be deducted from business income on the books that cant be deducted for tax purposes, and vice versa. For example, a company can say on their income statements (called “the books”) that they have a net income of 25 million. They came to this conclusion by doing all the things u see on an income statement: getting their revenue from business and such and subtracting their expenses (obviously not the only thing but u get the gist).

Now, the government is NOT taxing these companies based on that book income figure. This is where permanent and temporary differences come in. The government uses tax law to encourage certain business actions, and discourage others. A very good example is that on the books, a company claims expenses for penalties and fines. They do this because the books are meant to be looked at by investors and they want to know every detail of the business so they can determine if they want to invest. The us government on the other hand doesnt care about investing, they just want the tax dollars. Because penalties and fines are punishments in the first place, the government does not allow a business to claim that expense as a deduction to their income.

So im going to make the fine a big number so u understand what im saying and see why their tax rate is lower. On the books, company has 30 million in revenue, and they have 5 million in operating expenses and 5 million in penalties and fines (not usual but just for example sake). For book purposes, u as an investor would see the company has a net income of 20 million (30 rev - 5 operating expenses - 5 penalties). The government says, nah, u cant be rewarded a 5 million deduction for being a bad company. So on ur tax return, they take ur nice 20 million dollar net income and plop on 5 million dollars. Now ur paying taxes on 25 million instead of 20 million. Books will say tho ur income tax expense is 20 million times whatever tax rate, but ur tax return will say ur income tax liability is 25 million times the rate. They then take the tax liability produced by that 25 million, and compare it to the 20 million in net income. Now the rate changed because the numerator of the equation (tax liability) is based on 25 million now instead of 20 mil. So the rate goes up.

4

CoasterRider_ t1_iuvzwyz wrote

Replying to HispidaAtheris (#434,388)

That's what I don't get. It is used by most large organizations but despite us throwing hundreds of thousands of dollars at multiple consultants, no one can get us in a better place. We've already tried to rebuild our system and it just gets worse.

3

meltysandwich t1_iuw1gu4 wrote

Side question: what is this kind of “chart” called?

0

iamthemosin t1_iuw5qn0 wrote

What does salesforce actually do? Does anyone know?

−1

dwhale16 t1_iuweczp wrote

Answer: they really don’t

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Mr_AMT t1_iuwjhyg wrote

What is the name of this chart?

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notger t1_iuwz7h9 wrote

Nearly half the revenue goes into marketing and sales? Goes to show how much effort they have to undertake to sell their confusing mess.

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sirnoggin t1_iux8hrw wrote

If they're having to spend that much money on marketing, that says to me that they have insane customer churn (customers leave/we need to buy new customers), because a profit margin of 2% for a SaaS company is absolutely pathetic.

1

jmlinden7 t1_iuxe4qk wrote

Replying to Padmei (#434,158)

I think the investment gains include unrealized gains, which are not generally taxed. Out of their taxable income, they paid like 16% which is pretty standard for a corporation.

1

Leucippus1 t1_iuxpsn1 wrote

They are total rip off artists. That 'service' section that is $6.5B, that is because you are not allowed to customize the software to your needs. Since every Salesforce install has to be custom, then march in the Salesforce consultants who are often far less skilled than the developers you have right down the hall to try and (usually fail) to solve all the problems you didn't have until you spent all your money on Salesforce.

How do I know this? Three reasons, we had a zombie consultant who was friends with the boss finagle him into buying Salesforce. Years later the zombie consultant left because he was 'set up to fail' when every demo and milestone of the project failed. My wife's company attempted, multiple times, to get their monies worth. And I have worked for one of their competitors.

If you value money, not waiting 30 seconds for a backend query to finally put values into your webpage, a modern interface, and developers that know what they are doing, avoid Salesforce like the plague.

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OneOverTwoEqualsZero t1_iuxz276 wrote

Replying to sirnoggin (#436,601)

You clearly don’t understand how Salesforce works. It’s a tool, and up to the users to configure it correctly for their needs. It’s so complicated (by necessity) that people at other companies have their entire job titles as “Salesforce engineer” as they decide how to configure it for their company. Maybe Salesforce could have better documentation/support, but the fact that so many other companies use it effectively means that the problem here could be the ones setting it up.

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shoryusef t1_iv03nko wrote

What’s the name of this type of chart?

1