Quote:
Originally Posted by $5 submissions
You're saying that the SERVICE and MANUFACTURING sectors are SO DIFFERENT that they react differently from increased wages? Which differences account for the difference in effect?
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Exactly. If you produce let say spoons, you have fixed cost to make them and fixed profit and if constant of fixed cost is changed, then entire bussiness is in danger. Tho, you could eventually increase profit if you make those spoons to look pretty like apple did it with phones, or if you put a fancy name on it like Dr.dre did it, but those are exceptions, not rule.
While as service provider, you can always provide better service and always find a clientele with different purchase power. For example, i remember how you called yourself once a "flee market seo seller" but i am sure you can raise your prices 10x more and still find clients.