I applied to a job in the spring of 2006 and when they were showing me around the development area I noticed that everyone had single smallish CRTs and what seemed like older computers. I asked about it and they told me that most people had P3-500's! Unsurprisingly their salary offer was low also and I did not take the job.
Yeah, at that point you can pretty much conclude that the company is doing something incredibly wrong, and it's only a matter of time before it bites them.
If you have crappy pay and perks, then you won't attract good talent, and whatever good talent you had will eventually leave. Without good talent, it is highly unlikely you'll have a good app. If your app sucks, you will slowly bleed off customers, and revenue.
Of course, that's not a scientific fact. For exceptions start with: Contracts, Government.
I took that job and for 5 years each day when I arrived at work I would have to go around looking for somebody that had carelessly wandered off to the bathroom and steal their chair. Eventually I just settled on one that was missing two wheels and an arm rest since it tended to not mysteriously vanish as often while I was at home sleeping or away eating lunch.
