Quote:
Originally Posted by polak
How I see conversations about work going with business owners like Jim.
"Oh cool, you own a hardware store? What makes it stand out versus a place like home depot?"
"Well, I pay my employees as little as possible"
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Seriously?
What saves small business is they usually have to run on thinner profits because there's someone out there in their realm that has more purchasing power or other advantages.
They have to run on low over head, and skinny profits, so that they can sell a hammer for example that they buy for $10.00 and sell for $11.00 and home hardware buys a million at $9.00 and sells for 10.50.
If you look at that conversation, the line is more along the lines of
What makes you different.
I'm not home hardware, I'm locally owned and operated.
And hope that makes up the difference.
Basically when your dealing with a big box mover, they can literally buy market share just on purchasing power alone.
in the case of the Greenhouse, his Mexican Competition can buy the market based on their costs and cost control.
And the whole thing is if you boost minimum wage, you'll increase market share because those people will buy more doesn't really work, because "Jim" the hardware store owner has to increase his pricing to cover for his increased costs so the costumers buying power doesn't increase. And that costumer is probably still going to go to a big box mover because their pricing is still going to be less.