John Edgar Slow Horses
Diamond Member
- Apr 11, 2023
- 53,995
- 25,133
- 2,488
- Banned
- #81
If there is no money to pay....then there is no business.
I owned a bakery. I set people to make tarts.
I paid $15/hr. Taxes, insurance, and etc raised that to actually paying $22/hr but they see the 15 and they watch the taxes get cut from that.
I got $6ea for tarts. I had a food cost of 35% for tarts. Meaning I had $2 of ingredients in the tarts. (Roughly and not precisely)
When they only make one tart every 15 minutes....I'm losing money while they demand to be paid more an hour.
I usually made up the difference because I could do a LOT more than that. I also could make a lot of other things incredibly fast. Paying them $15/hr already was charity at my expense.
Now....people won't spend $15 for a $6 tart....but if I was to actually configure margin for their labor (instead of mine) into the tart the bakery would go under. (I also would have packaging costs to yet pay too).
The kids making tarts were worth half to a third of what they were.
It's either accept the wages and have a job or get better....make 10-15 tarts an hour. Then I can afford to pay more. And would be ecstatic about it because I could never keep enough tarts in the case.
Welcome to small business.