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This post is a reminder that basic course in economics doesn't make anybody an economist, it is what it is a basic course providing very basic, simplistic understanding of economic laws.
Yes, there are companies that pay retail employees a minimum of $18 And still are very successful, employers like Costco or Starbucks. Being successful doesn't mean you have to pay your employees a minimum wage.
Then again, we are probably way beyond ehat is covered in a basic course of economics so I'll stop right there.
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Quote:
Originally Posted by Mathguy
So why not pay them $40/hour and sell the pretzels for $15 each? You'd have some awesome employees.
Or just sell the pretzels for $2 each and have the business lose $50,000 a year?
This thread is a clear reminder to me that basic economics is probably a class that maybe 10% of the US population has ever had to take.
Last edited by random_thoughts; 09-03-2014 at 02:15 PM..
And the prime directive of all employees is to be paid the highest available wage so stop whining that your employees are leaving for better paying employers.
Quote:
Originally Posted by Spaten_Drinker
The prime directive of a business is the benefit the OWNERS, not the EMLOYEES. If my business makes just enough to cover all of the owner's expenses then any change in payroll may cause bankruptcy.
Whether we consider sales, earnings, or stock market returns, Costco (NASDAQ: COST ) is outperforming Wal-Mart (NYSE: WMT ) by a considerable margin in recent years. This is probably due to a multiplicity of factors, since both companies have important differences in areas such as business model and size.
However, there could be some important lessons to be learned from the competition between Costco and Wal-Mart when it comes to employee compensation and its relationship to business profitability. While many people tend to think that higher costs in segments such as salaries and benefits are necessarily detrimental for shareholders' returns, this interpretation may be far too shortsighted.
Over a period of years, attracting a more talented workforce and keeping employees incentivized has undeniable benefits for productivity and customer service, among many other business aspects, and this is probably one reason why Costco shareholders are receiving superior returns than investors in Wal-Mart.
Maybe the right wing knee jerk dogma is to be questioned.
Absolutely it SHOULD be. The right wing ideologues march in lockstep to some right wing dogma that may or may not be true. Ideology is not truth.
Location: Just transplanted to FL from the N GA mountains
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Quote:
Originally Posted by Driller1
Don't be so sure.
Our base pay for a new hire is $18 an hour.
We have had trouble getting good workers.
That is one reason we treat our guys very good.
Us too. About 25% can't pass the drug test. About 25% get hired and wash out the first month. They don't want to work over-time (their told in advance that there will be so don't even ask). Yes.. it is labor intensive. But their also told over time, that there is room for advancement and eventually they can and do move up the ladder. One young man took to it like a fish to water and in six months he went from a general labor to my husbands assistant, and when an opening came around he just got promoted again. Knocking down some serious cash now.
Whether we consider sales, earnings, or stock market returns, Costco (NASDAQ: COST ) is outperforming Wal-Mart (NYSE: WMT ) by a considerable margin in recent years. This is probably due to a multiplicity of factors, since both companies have important differences in areas such as business model and size.
However, there could be some important lessons to be learned from the competition between Costco and Wal-Mart when it comes to employee compensation and its relationship to business profitability. While many people tend to think that higher costs in segments such as salaries and benefits are necessarily detrimental for shareholders' returns, this interpretation may be far too shortsighted.
Over a period of years, attracting a more talented workforce and keeping employees incentivized has undeniable benefits for productivity and customer service, among many other business aspects, and this is probably one reason why Costco shareholders are receiving superior returns than investors in Wal-Mart.
Maybe the right wing knee jerk dogma is to be questioned.
The article itself basically says, "Well, who knows why, but I guess I'll throw this out because it sounds good."
I shop at Costco and not Sam's Club or Walmart for three primary reasons:
1. Costco has a greater amount of high quality products.
2. The people shopping at Costco aren't "The people of Walmart"
3. Costco's return policy.
I drive pass a Sam's Club and multiple Walmarts before I even hit the halfway point of my 45 minute drive to Costco.
Personally, I don't find the Costco employees any more helpful than those at Best Buy, Lowes or Home Depot.
I spend a lot of money at Costco. My friends, who also shop there, spend a lot of money. Of course, we also don't abuse the return policy, write bad checks, treat the store as a garbage can or call a lawyer if we don't pay attention and trip over something.
I don't believe Costco's success has to do with what they pay their employees, but it comes from the products they carry, their return policy and their customer base.
Us too. About 25% can't pass the drug test. About 25% get hired and wash out the first month. They don't want to work over-time (their told in advance that there will be so don't even ask). Yes.. it is labor intensive. But their also told over time, that there is room for advancement and eventually they can and do move up the ladder. One young man took to it like a fish to water and in six months he went from a general labor to my husbands assistant, and when an opening came around he just got promoted again. Knocking down some serious cash now.
That tends to be common for any labor intensive job, not everyone is cut out for that kind of work.
The article itself basically says, "Well, who knows why, but I guess I'll throw this out because it sounds good."
I shop at Costco and not Sam's Club or Walmart for three primary reasons:
1. Costco has a greater amount of high quality products.
2. The people shopping at Costco aren't "The people of Walmart"
3. Costco's return policy.
I drive pass a Sam's Club and multiple Walmarts before I even hit the halfway point of my 45 minute drive to Costco.
Personally, I don't find the Costco employees any more helpful than those at Best Buy, Lowes or Home Depot.
I spend a lot of money at Costco. My friends, who also shop there, spend a lot of money. Of course, we also don't abuse the return policy, write bad checks, treat the store as a garbage can or call a lawyer if we don't pay attention and trip over something.
I don't believe Costco's success has to do with what they pay their employees, but it comes from the products they carry, their return policy and their customer base.
Costco's customer base makes a difference as they are more affluent, but so does Costco's compensation level. The increased compensation reduces turnover (6% vs 60%+ for WMT and 50% for retail as a whole) which reduces training costs and improves productivity. In fairness, Sam's might have a turnover rate lower than 50%.
I had a classmate that interviewed at both Costco and Sam's club. They chose Costco because they start people off 20% higher, liked college students, and offered overtime. The Sam's club apparently limits people to 37 hours.
Costco's customer base makes a difference as they are more affluent, but so does Costco's compensation level. The increased compensation reduces turnover (6% vs 60%+ for WMT and 50% for retail as a whole) which reduces training costs and improves productivity. In fairness, Sam's might have a turnover rate lower than 50%.
I had a classmate that interviewed at both Costco and Sam's club. They chose Costco because they start people off 20% higher, liked college students, and offered overtime. The Sam's club apparently limits people to 37 hours.
Well not every job is the same. You might possibly be paying too little for the type of work or the type of work is very labor intensive and not everyone is cut out for that type of work.
It is very hard work.
But, I am in my mid-forties and I can do it.
I have had 18 years old men not it a full day.
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