A Liberal Video on Walmart and the Minimum Wage that Made Me Think

[GHook93]

[ame=http://www.youtube.com/watch?v=vAcaeLmybCY]If Walmart Paid Its Employees a Living Wage, How Much Would Prices Go Up? - YouTube[/ame]

You can bash the concept before watching the video, which was my first reaction. However, the video points out that raising a Walmart employee at the minimum wage to the so-called "living wage" of $13.63 would cause Walmart to have to raise prices by $0.01!

Thoughts?

It then makes, what I believe is an erroneous claim, that if they raised the amount then people would go off of food stamps. I think it is erroneous, because I believe they still qualify at that low level.

 

[GHook93]

[ame=http://www.youtube.com/watch?v=6_-1N77GVLU]Costco Proves Walmart Wrong: Living Wage & Bigger Profits - YouTube[/ame]

Now you have the other end of the spectrum.

Liberal always hold out Costco as the great example of an employer caring about their employees. Afterall they provide a starting wage of $11.50 and provide better than industry standard benefits. However, there is a catch. I believe there sales pitch is a mirage. They use a clever gimmick of of having you pay for membership in order to get great saving on products you have to buy bulk.

I have four kids so I do my grocery shopping based on the low price for the same product. My stops (i have it to a science) are Target (where I buy the bulk of my groceries), Mariano (crab cakes, milk etc), Walmart (soda, CHICKEN, bread), Meijer(various items) and Costco.

I find on nearly every occasion Costco is the highest. I eat a ton of chicken. It is always a $1.00 more per pound. The only items I pull their consistently are lettuce (they have very low prices), apple juice (I save a $1.00) and vitamins. So yes it has value to me, but on nearly everything else it's over-priced.

What is that cause by? Everyone who shops there has to pay a membership fee, so they get a revenue stream Walmart, Target and other grocery stores don't get. Could they have to charge more for the higher rates they pay their employees? I am pretty sure that is the reason. Are the cost a ton more? In make case YES. Take chicken. They charge $1.00 more per pound than Walmart. That is $1.99 vs $2.99 (note: Target, Marianos are typically $2.99 also). Buy 10 lb and you spent $10 extra dollars.

So we do lose purchase power to get those higher wages.

 

[GHook93]

Thoughts? Mine are DUH! We have been saying this for a while. Republicans thoughts: Damn leeches! Ought to be happy they have a job! BLACKMAIL!

See the next one small fry. Too many of you only what to look at one side of the coin. If Walmart (which doesn't give the lowest wages in the industry), supposedly would only charge $0.01 more. Than why is Costco much more expensive than it's competitors, even though it has a membership fee revenue stream most of it's other competitors don't have?

 

[Avatar4321]

This is precisely why we shouldn't be telling private companies how to run their business. They know their needs and expenses far better than any politician trying to get elected does.

 

[Katzndogz]

Costco Proves Walmart Wrong: Living Wage & Bigger Profits - YouTube

Now you have the other end of the spectrum.

Liberal always hold out Costco as the great example of an employer caring about their employees. Afterall they provide a starting wage of $11.50 and provide better than industry standard benefits. However, there is a catch. I believe there sales pitch is a mirage. They use a clever gimmick of of having you pay for membership in order to get great saving on products you have to buy bulk.

I have four kids so I do my grocery shopping based on the low price for the same product. My stops (i have it to a science) are Target (where I buy the bulk of my groceries), Mariano (crab cakes, milk etc), Walmart (soda, CHICKEN, bread), Meijer(various items) and Costco.

I find on nearly every occasion Costco is the highest. I eat a ton of chicken. It is always a $1.00 more per pound. The only items I pull their consistently are lettuce (they have very low prices), apple juice (I save a $1.00) and vitamins. So yes it has value to me, but on nearly everything else it's over-priced.

What is that cause by? Everyone who shops there has to pay a membership fee, so they get a revenue stream Walmart, Target and other grocery stores don't get. Could they have to charge more for the higher rates they pay their employees? I am pretty sure that is the reason. Are the cost a ton more? In make case YES. Take chicken. They charge $1.00 more per pound than Walmart. That is $1.99 vs $2.99 (note: Target, Marianos are typically $2.99 also). Buy 10 lb and you spent $10 extra dollars.

So we do lose purchase power to get those higher wages.

I recently went to a Costco. I'm not a member. I gave a member transport. Costco is a warehouse that sells stuff. Walmart is a store with salespeople, janitors, stockers. Restocking a Costco means driving in a pallet of stuff and parking it. Clothing is not on racks but piled on tables. There is no such thing as a try on.

Costco really can pay more because they have way fewer employees and no amenities.

 

[GHook93]

Thoughts? Mine are DUH! We have been saying this for a while. Republicans thoughts: Damn leeches! Ought to be happy they have a job! BLACKMAIL!

See the next one small fry. Too many of you only what to look at one side of the coin. If Walmart (which doesn't give the lowest wages in the industry), supposedly would only charge $0.01 more. Than why is Costco much more expensive than it's competitors, even though it has a membership fee revenue stream most of it's other competitors don't have?

Beats me. Why does Sams club which is owned by wal mart do the same thing? They are members only and have high prices as well on some stuff. Choice I suppose.They can have higher prices so they do.

I have never been to Sam's Club.

I will admit I choose Costco over Sam's Club because of the good press on the so called living wages they pay. I find that respectable.

 

[ClosedCaption]

If Walmart Paid Its Employees a Living Wage, How Much Would Prices Go Up? - YouTube

You can bash the concept before watching the video, which was my first reaction. However, the video points out that raising a Walmart employee at the minimum wage to the so-called "living wage" of $13.63 would cause Walmart to have to raise prices by $0.01!

Thoughts?

It then makes, what I believe is an erroneous claim, that if they raised the amount then people would go off of food stamps. I think it is erroneous, because I believe they still qualify at that low level.

This has been posted before but if you are looking for a serious reply from a republican besides G5000 you're really a positive thinker.

Are you prepared to be called a RINO and a Liberal? If not, hunker down buddy

 

[depotoo]

Thoughts? Mine are DUH! We have been saying this for a while. Republicans thoughts: Damn leeches! Ought to be happy they have a job! BLACKMAIL!

See the next one small fry. Too many of you only what to look at one side of the coin. If Walmart (which doesn't give the lowest wages in the industry), supposedly would only charge $0.01 more. Than why is Costco much more expensive than it's competitors, even though it has a membership fee revenue stream most of it's other competitors don't have?

Beats me. Why does Sams club which is owned by wal mart do the same thing? They are members only and have high prices as well on some stuff. Choice I suppose.They can have higher prices so they do.

Sam's club is much lower over all than Costco.

 

[initforme]

I prefer Costco to any other large retailer because of the nicer atmosphere. Never been a fan of Walmart.

 

[BobPlumb]

Why should Walmart get blamed for the goverment providing entitlements?

 

[The Rabbi]

You can bash the concept before watching the video, which was my first reaction. However, the video points out that raising a Walmart employee at the minimum wage to the so-called "living wage" of $13.63 would cause Walmart to have to raise prices by $0.01!

Thoughts?

It then makes, what I believe is an erroneous claim, that if they raised the amount then people would go off of food stamps. I think it is erroneous, because I believe they still qualify at that low level.

So if Wal MArt could raise wages that much and only charge one penny more, why haven't they done that? Wouldn't they want to attract better workers, who will show up on time more and make fewer mistakes? Is Wal Mart, the most successful retailer in history, run by stupid people?

 

[The Rabbi]

Costco charges a large membership fee that nets them more money than any standard retailer. They also charge higher prices, as well as sell higher end products.

 

[buckeye45_73]

My question is why not raise it really high? We all know the answer, because I don't buy the 1 cent increase. every cashier making $3.00/hour more almost 50% more and they raise prices by a penny?

lets see these studies, because I'd love to see how they calculate this.

and shit, lets raise my salary to #200/hour, I'm game

 

[buckeye45_73]

If Walmart Paid Its Employees a Living Wage, How Much Would Prices Go Up? - YouTube

You can bash the concept before watching the video, which was my first reaction. However, the video points out that raising a Walmart employee at the minimum wage to the so-called "living wage" of $13.63 would cause Walmart to have to raise prices by $0.01!

Thoughts?

It then makes, what I believe is an erroneous claim, that if they raised the amount then people would go off of food stamps. I think it is erroneous, because I believe they still qualify at that low level.

This has been posted before but if you are looking for a serious reply from a republican besides G5000 you're really a positive thinker.

Are you prepared to be called a RINO and a Liberal? If not, hunker down buddy

LOL, nice try, but no he wont. It's a good question and we actually debate, not look for key words to stop one. OMG he said Walmart it's racist, end of debate!

 

[The Rabbi]

Why wouldn't WalMart want to pay top wages to attract top employees and not lose any market share? Anyone?

 

[FA_Q2]

Costco Proves Walmart Wrong: Living Wage & Bigger Profits - YouTube

Now you have the other end of the spectrum.

Liberal always hold out Costco as the great example of an employer caring about their employees. Afterall they provide a starting wage of $11.50 and provide better than industry standard benefits. However, there is a catch. I believe there sales pitch is a mirage. They use a clever gimmick of of having you pay for membership in order to get great saving on products you have to buy bulk.

I have four kids so I do my grocery shopping based on the low price for the same product. My stops (i have it to a science) are Target (where I buy the bulk of my groceries), Mariano (crab cakes, milk etc), Walmart (soda, CHICKEN, bread), Meijer(various items) and Costco.

I find on nearly every occasion Costco is the highest. I eat a ton of chicken. It is always a $1.00 more per pound. The only items I pull their consistently are lettuce (they have very low prices), apple juice (I save a $1.00) and vitamins. So yes it has value to me, but on nearly everything else it's over-priced.

What is that cause by? Everyone who shops there has to pay a membership fee, so they get a revenue stream Walmart, Target and other grocery stores don't get. Could they have to charge more for the higher rates they pay their employees? I am pretty sure that is the reason. Are the cost a ton more? In make case YES. Take chicken. They charge $1.00 more per pound than Walmart. That is $1.99 vs $2.99 (note: Target, Marianos are typically $2.99 also). Buy 10 lb and you spent $10 extra dollars.

So we do lose purchase power to get those higher wages.

I have no idea what you are looking at because Costco is FAR cheaper than Walmart and Target any day of the week. The milk, fruit, vegetables, cheese and many other food items are all vastly cheaper there. Detergents, cleaners and other standard items are also far cheaper. The sole product that I find elsewhere cheaper is meat and there is a distinct increase in quality at Costco over low end retailers like Fed Mayer and Wal-Mart. Wal-Mart’s quality is garbage though (only outdone by Fred Mayer in this area) and I prefer Costco products almost all the time. Add to that the fact that there are also other products there that are sold for insanely low prices and they are an excellent retailer. I purchased my king memory foam mattress there for 400 bucks – find that anywhere else. The problem is, of course, the selection is not static and rather iffy so you really can’t do all your shopping there.

I don’t really see how they have another revenue stream either. The upgraded membership is just 100 bucks a year and if you do not get back more than you spend (you get a 1 percent return on ALL purchases at the end of the year) then they refund you the difference. As I didn’t buy the 10K in items last year to break even I got a 55 dollar check in the mail refunding the cost of my membership. I don’t know what the standard membership gives you but if you don’t have the upgraded one I would suggest that you upgrade. It is essentially free….

As Rabbi suggests, they pay more because they don’t need the employment that Wal-Mart requires and they also require a higher standard of employee. To get that they need to pay more. The people that shop at Costco (many of which are business owners) would not tolerate the employees and service at Wal-Mart. I know I barely can anymore after shopping elsewhere.

Anyway – I think the claim that Wal-Mart would only have to charge .01 more is completely vapid at the very best. Quite frankly, it is rather asinine for so many people who have no real idea about Wal-Mart’s business to comment on what it would cost them and how it would impact their stores. Again, as Rabbi pointed out as well, if it were that simple then they would simply raise the employee wages and not only reap the excellent PR but also the improved quality of worker that they would be receiving. They don’t do this of course and it is not because of the empty ‘evil rich guys wanting to fleece more money’ asinine excuse. It is because it does not make business sense.

 

[ClosedCaption]

Threads fizzled fast when no one can attack the op lol.

No one even argued about the video...interesting

 

[The Rabbi]

Threads fizzled fast when no one can attack the op lol.

No one even argued about the video...interesting

Thread fizzled when no one could answer my challenge as to why WalMart would not want to implement this brilliant plan.

 

[Plasmaball]

This is precisely why we shouldn't be telling private companies how to run their business. They know their needs and expenses far better than any politician trying to get elected does.

sure....this is stupid

 

[Star]

You can bash the concept before watching the video, which was my first reaction. However, the video points out that raising a Walmart employee at the minimum wage to the so-called "living wage" of $13.63 would cause Walmart to have to raise prices by $0.01!

Thoughts?

It then makes, what I believe is an erroneous claim, that if they raised the amount then people would go off of food stamps. I think it is erroneous, because I believe they still qualify at that low level.

So if Wal MArt could raise wages that much and only charge one penny more, why haven't they done that? Wouldn't they want to attract better workers, who will show up on time more and make fewer mistakes? Is Wal Mart, the most successful retailer in history, run by stupid people?

Walmart's formula for success is dependent-----dependent on government handouts, tax breaks for the corporate side and subsistence assistance on the employee side.

Costco's formula OTOH, is pretty simple, treat people with respect, target smarter-richer customers, offer high quality upscale products at value prices. bada bing


Why Costco Is Crushing Walmart-Owned Sam's Club

by Jillian Berman
05/16/2014

Sam’s Club, the Walmart-owned purveyor of bulk toilet paper and ketchup, had a terrible last few months, the company announced Thursday. Meanwhile its competitor Costco is doing just fine.

<snip>

Sam's Club may be targeting a suffering consumer. Sam's Club CEO Rosalind Brewer noted in an earnings call that the chain suffered this past quarter from a decline in public assistance for poor customers. With the economic recovery tepid and the government safety net getting smaller, poor consumers are cutting back on their spending, even at the cheapest-of-the-cheap outlets like dollar stores and Walmart.

And Sam's Club is not a cheapest-of-the-cheap outlet. You need a membership to shop there, a privilege that comes with a $45 yearly membership fee. That's cheaper than Costco's $55 a year, but it's still an expense.

Costco, on the other hand, explicitly targets customers with more money, who haven't been hit quite as hard by the downturn.

Costco shoppers "are probably a little more resilient in times of economic uncertainty, and my sense is they are a little less price-sensitive," Sara Altukhaim, an analyst at Kantar Retail, told HuffPost in an email.

The map below from Morgan Stanley shows the states with the most Costcos.

You'll notice that the state where the chain has the most stores, California, is also the state with the most high-net-worth individuals, according to a recent report from the research group Wealth-X. That seems to be a pattern: States with more Costcos tend to be relatively wealthier states.

<snip>

Costco customers are incredibly loyal, thanks in part to the chain's commitment to signature offerings.

Given that about 75 percent of Costco's operating profit comes from membership fees alone, "literally every decision Costco makes comes down to what the member wants," Altukhaim wrote. And members are evidently happy: The warehouse chain has a renewal rate of nearly 90 percent.

Costco's Kirkland brand, which accounts for about 20 percent of the company's sales, according to Landes, is evidently one of the things customers want. In 2002, Costco started selling a line of Bumble Bee tuna under the Kirkland name that was of better quality than the original Bumble Bee, according to CNNMoney. By using the Kirkland brand to sell quality products at an affordable price, Costco has convinced consumers to trust Kirkland, and Costco by extension.

.