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MINIMUM WAGE INCREASE
by unasips, Window Shopper
- Created: February 27, 2013, 10:19 am
- Updated: February 27, 2013, 10:20 am
I don't know what to do to protect our business. Hearing from some
politicians and some so called
"ExpertS" who don't know a thing and don't have any idea about running a
small business. I am talking about a small, small, between 3-10 employees.
I started a small restaurant for my sons a year ago. They has been working
long hours and takes less than minimum pay out in order to keep the business
afloat. I myself has been helping him everyday without drawing any wages, and
my sister also help without pay, part time. We employ 4 high school students
part time since most adult won't take few hours of work each day, and we
cannot afford to pay for the their demanded wage which are normally higher
than $7.25/hour anyway.
My concern with the increase are:
1. We just cannot afford to pay higher wages at $2/hours more. While we are
trying to keep the food price low so that we don't drive away customers by
increasing our prices.
2. A $2 increase on wages do not mean just $2, Social security tax and
employment tax increase accordingly. It would become $2.50 increased easily.
3. These people don't have any broad idea about the domino effect. They said
that "oh, the company just pass on the increase in their products". Don't
they think that every products that we have to buy for our business will
increase, therefore our cost will be higher. If every product increase about
30% which is approximately the increase of the minimum wages. What would that
translate to our product costs let alone the wages increase for our
employees?
4. Why can't they think of "Demand and Supply" rule? The job market drives
the wages itself anyway. We have to hire cooks who make over $10/hours while
we pay ourselves less than minimum.
5. Most of the company paying higher than $7.25/hour right now anyway. The
one that will get hurt most are the small business like us. You cannot simply
put a blanket rules to cover everybody in the business world.
6. Has any expert who talking about the increase ever think about inflation.
Sure, you make more wages, but you will have to spend more for every products
that you buy. There isn't any magic hat that we can pull the money out to
cover the increase cost. In the business world, consumers pay the price.
Every small business is also a consumer.
I do not have an economics degree or a PHD to prove my points, but what I
said are the simple truth of our own business lives and livings. Every time I
heard people who talking about increasing minimum wages without concern of
small business, I feel very angry of their ignorant.
SBA Community

BizResearcher | Window Shopper | 2/27/2013 - 11:43 am
don't pay a living wage and expect their employees to apply for food stamps
and Medicaid to help care for their families. Yes, you will have to increase
the cost of your food, but you can use that to your advantage in your
marketing if you do it right. You can let the public know that you are
increasing prices in order to compensate your employees for their hard work.
Most people will understand IF you continue to provide excellent customer
service with a smile. Trying to compete on price alone is a losing battle.
You have to provide something more (service, friendly employees) that creates
loyalty to your business and keeps customers coming back. If they like you
and your business, they will pay the increased prices.
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