dangelder: In July 2007, the federal minimum was $5.15. In July 2009 it was $7.25, a jump of 41% in just two years. I don't recall any serious economic trouble during that time period.
super_grass: $15 minimum wage? Good luck with that. $10 is okay, but I can see businesses moving out of the suburb at $15.Guess we have to wait and see on this one.
neilbradley: I remember being paid $3.25/hr for my first job in 1985. That rate today is around $7.80/hr. So they're getting more than double the rate of inflation.
Unemployedingreenland: I have a small business and employ about 35 part timers - all college and high school students. We pay about 15% above minimum wage because I don't want to compete with McD's for my labor pool. We have no direct competition in the area (we are a particular kind of family amusement business), but there is plenty of indirect competition - everything from other venue based entertainment options - bowling, movies, etc. - to gaming systems, Netflix, etc, to just hanging out at someone's house. Labor is my single largest expense, and eats approx 35% of revenue. We are also significantly more labor intensive than my indirect competitors. Our margins are OK (15%-20%) - not great, but so long as we have a sufficient level of revenue, I can make a decent living for me and my family.In my state, there is talk of raising the minimum wage to about $13/hr, which would increase my labor costs 50%+. Regardless of business acumen, there's simply no way to pass that additional cost on to my customers. We have particular "sticky" price points - $19.99 (no really), and $199.99 (again, really). No matter how we sell, bundle or package things, once the cost per person hits $20 (or the cost per party/group/event hits $200), we see a significant dropoff in sales. In other words, people seem to be ok with spending less than $20/$200, but there's a widely-held understanding that $20+/$200+ is too much and there's a visceral aversion to spending that much or more on what we offer.So if my labor costs increase 50%, my margins go negative unless I can somehow overcome this $20/$200 issue (and we've been doing this long enough to understand that there's no handy solution) or reduce my headcount/make my business less labor intensive. Since every employee is integral to our customer service, reducing headcount is certain to decrease customer satisfaction, which, all things being equal, impacts sales.Simply put, we are a business that cannot survive a large spike in the minimum wage ...
aneki: And who in their right mind would want to put up with all the headaches of owning a business for minimum wage?
BMulligan: There's a chain of burger joints here in Seattle which starts their employees at $10.25/hour, which is substantially less than $15 of course (although well above the minimum wage), but they also provide 100% employer paid health insurance, child care assistance of up to $8,000/year, and college tuition assistance of up to $5,500/year. They've been in business for over 50 years, and the family that owns the company lives quite well. It is possible to treat employees like human beings and still make a reasonable profit.
Zeb Hesselgresser: "The best way to sabotage chances for upward mobility of a youngster from a single-parent household, who resides in a violent slum and has attended poor-quality schools is to make it unprofitable for any employer to hire him. The way to accomplish that is to mandate an employer to pay such a person a wage that exceeds his skill level." - Dr. Williams
Mr. Eugenides: whidbey: OK I predict this thread is going to be about "oh the poor poor employers who have to cough up extra $$$ that takes away from their PROFITS."*read in a Ferengi voice*If there is no profit, why am I investing all my money and 80 hours of my time per week?So I'm assuming you feel that a business owner is entitled to some return on investment if not, well then you're an uneducatable semi literate child and should hold your tongue while the adults speak.That said, if labor costs are 40% of expenses and they double then there simply won't be any profits.
Prophet of Loss: Mr. Eugenides: whidbey: OK I predict this thread is going to be about "oh the poor poor employers who have to cough up extra $$$ that takes away from their PROFITS."*read in a Ferengi voice*If there is no profit, why am I investing all my money and 80 hours of my time per week?So I'm assuming you feel that a business owner is entitled to some return on investment if not, well then you're an uneducatable semi literate child and should hold your tongue while the adults speak.That said, if labor costs are 40% of expenses and they double then there simply won't be any profits.1. We are talking about minimum wage, so its service jobs.2. You can raise prices. Your competition is in the same boat and under the same pressures as you.If your business acumen is so weak you can't pay a living wage and stay in business then maybe you should do something else and leave running a successful business to 'the adults'.
Links are submitted by members of the Fark community.
When community members submit a link, they also write a custom headline for the story.
Other Farkers comment on the links. This is the number of comments. Click here to read them.
You need to create an account to submit links or post comments.
Click here to submit a link.
Also on Fark
Submit a Link »
Copyright © 1999 - 2017 Fark, Inc | Last updated: Apr 23 2017 13:50:19
Runtime: 0.220 sec (220 ms)