This is a problem across the board. This simple math can be applied to anything, including your weekly team meetings. I’ve been in half and full day meetings of 50 people or more, and all we talked about was “team building” — basically how to play nice in our daily work playground.
Taking the math (and doing a little mental juggling) — a meeting like that could cost up to $50K, just in employee cost (not adding the cost of facilitators, rooms, travel, etc.).
Let’s take it a step further, and look at revenue required to recoup that expense. If you’re company makes a Gross Profit of 30%, it takes approximately $167K in revenue to pay for that one single day.