Simple Math


Today I can only afford to buy one of the things you sell; but if they raise the minimum wage to something liveable, then I will be able to buy two or three of the things you sell, maybe more sometimes, and so will all of my friends and family members who can also only currently afford to buy one; some of them even none. But if you think that you must raise your prices because the minimum wage has gone up, then we're back to me being able to still only afford one, and some of my friends none. So you've made nothing, because you bought into the scare tactic that all prices must go up if the wage goes up.

So there you are, now selling 30 or 40 things a day - maybe more - and they're affordable now because you didn't raise the price, so all of my friends and family tell all of their friends how affordable the things are, and they start coming in to buy the things too. Maybe you have to hire another staff person, but you're selling enough things now that you can cover that wage easily, cover your own wage, cover the rest of your overhead, and still have a little extra on the side.

That right there is the issue, you see. When the scare tactic gets trotted out that higher wages mean higher prices (or costs), what that really means is that profits for the business go down. They're not willing to take a little punch to the profit in order to make life better for everyone - a punch to the profit that will end up not simply ending the stranglehold on the status quo, but actually increase profit by sheer weight of volume; because you will be better off selling 20 things at $10 per, than continuing only to sell 10 things at $15 per, because you preserved your status quo. It is not a hit to baseline needs/costs that businesses are worried about, it's that precious profit margin.

So it's not the leaps of a lottery win into wealth and riches that you were hoping for from your business; but business is steady, your staff content, and goods go out as fast as they come in. What's that old saying: Slow and steady wins the race.



2017 09 17 - 12:46

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