GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Seattle?s $15 Min. Wage Is Making Something Happen That City Leaders Never Expected

iSpyCams · 03-25-2015, 06:38 AM

I've been in situations where labor costs got out of control and tried to fight it out, get in front of it, make it work, trust me it's not worth it. And I'm not even talking about a change of 7-15 dollars an hour, even a smaller increase like 10-20% is drastic. If I was faced with that situation I would certainly close without hesitation.

One of the first things you learn in business is that payroll and employee compensation is the most controllable expense. It's the first place you look when you need to save money. I have always paid people as much as I could afford to. If someone came along and told me I had to double it, I'd say, here - they're all fired. You try it! Not because I wanted to, just because I know it's not possible, and to even try means I am accepting work from people that there's a high chance I won't be able to compensate them for, and that's not acceptable to me.

I can't think of a single small to medium business anywhere where employee compensation isn't at least 3 times the profit margin, in many cases much more.

Personally, every 100 bucks I gross, I am putting only 1-5 dollars in my pocket and paying out anywhere from 35-60 to "employees" depending on what you call an employee and what you call a contractor. The rest goes to overhead and if I'm lucky I keep a dollar or two.

Say what you want, Ayn Rand was right that good help is hard to find, there is always a lot of competition for good workers, and compensation packages are set up to make sure you get the best help available for your budget. People making too little either haven't developed valuable skills or they haven't found the right place where their skills are needed and appreciated.

03-25-2015, 06:38 AM
iSpyCams Amateur Gynecologist Industry Role: Join Date: May 2009 Location: Medellin Posts: 4,436	I've been in situations where labor costs got out of control and tried to fight it out, get in front of it, make it work, trust me it's not worth it. And I'm not even talking about a change of 7-15 dollars an hour, even a smaller increase like 10-20% is drastic. If I was faced with that situation I would certainly close without hesitation. One of the first things you learn in business is that payroll and employee compensation is the most controllable expense. It's the first place you look when you need to save money. I have always paid people as much as I could afford to. If someone came along and told me I had to double it, I'd say, here - they're all fired. You try it! Not because I wanted to, just because I know it's not possible, and to even try means I am accepting work from people that there's a high chance I won't be able to compensate them for, and that's not acceptable to me. I can't think of a single small to medium business anywhere where employee compensation isn't at least 3 times the profit margin, in many cases much more. Personally, every 100 bucks I gross, I am putting only 1-5 dollars in my pocket and paying out anywhere from 35-60 to "employees" depending on what you call an employee and what you call a contractor. The rest goes to overhead and if I'm lucky I keep a dollar or two. Say what you want, Ayn Rand was right that good help is hard to find, there is always a lot of competition for good workers, and compensation packages are set up to make sure you get the best help available for your budget. People making too little either haven't developed valuable skills or they haven't found the right place where their skills are needed and appreciated. __________________ - As soon as I think up a good sig it's going here.