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Splain This Rucy!
- audiophile
- Posts: 8660
- Joined: Sat Dec 04, 2004 9:21 pm
- Location: Between 88 and 108 MHz.
Re: Splain This Rucy!
Or dies?
That only helps big companies, that can afford it, and have an established business model.
The little guy is shut out from ever getting out the starting gate.
That only helps big companies, that can afford it, and have an established business model.
The little guy is shut out from ever getting out the starting gate.
Ask not what your country can do FOR you; ask what they are about to do TO YOU!!
Re: Splain This Rucy!
I am at the start of many businesses. Access to funding and a proper business plan is how any respectable little guy gets started. Having a solid business degree is also important. Minimum wage isn't the major concern. You are just pulling it out of your butt it seems.audiophile wrote:Or dies?
That only helps big companies, that can afford it, and have an established business model.
The little guy is shut out from ever getting out the starting gate.
Example: Restaurant
$2 million in sales with 27% labor (typical)= $540,000 at $10 an hour (McDonalds wages) = 54,000 hours
54,000 hours at $15 = 810,000 or 40% labor at $2 million. Rate increase by 8% ($2,160,000) and you are at the same gross profit.
Hamburger meal $7 x 108% (wage adjustment) = $7.56
Implement this over 3 years and the market doesn't care.
“Blessed are those who are righteous in his name.”
― Matt
Posting Content © 2024 TC Talks Holdings LP.
― Matt
Posting Content © 2024 TC Talks Holdings LP.
- Lester The Nightfly
- Posts: 1794
- Joined: Thu Aug 11, 2005 6:19 pm
Re: Splain This Rucy!
Oh shit, you're applying math, accounting, and business management principles to the discussion. We can't have that when mindless ideological conjecture prevails.TC Talks wrote:I am at the start of many businesses. Access to funding and a proper business plan is how any respectable little guy gets started. Having a solid business degree is also important. Minimum wage isn't the major concern. You are just pulling it out of your butt it seems.audiophile wrote:Or dies?
That only helps big companies, that can afford it, and have an established business model.
The little guy is shut out from ever getting out the starting gate.
Example: Restaurant
$2 million in sales with 27% labor (typical)= $540,000 at $10 an hour (McDonalds wages) = 54,000 hours
54,000 hours at $15 = 810,000 or 40% labor at $2 million. Rate increase by 8% ($2,160,000) and you are at the same gross profit.
Hamburger meal $7 x 108% (wage adjustment) = $7.56
Implement this over 3 years and the market doesn't care.
Good post TC
Re: Splain This Rucy!
A. You forgot to add in additional payroll taxes.
B. if you think the average small business gets started with the capital needed to open even a small McDonald's, you're dreaming.
B. if you think the average small business gets started with the capital needed to open even a small McDonald's, you're dreaming.
New York and Chicago were all in with respect to their sanctuary status — until they were hit with the challenge of actually providing sanctuary. In other words, typical liberal hypocrisy.
Re: Splain This Rucy!
Then how do all these tiny businesses seem to sprout out of nowhere every 5 seconds?audiophile wrote:Or dies?
That only helps big companies, that can afford it, and have an established business model.
The little guy is shut out from ever getting out the starting gate.
Re: Splain This Rucy!
Also, he was earlier advocating $15/hour and his example has the wage going from $10 to $10.80.Bryce wrote:A. You forgot to add in additional payroll taxes.
B. if you think the average small business gets started with the capital needed to open even a small McDonald's, you're dreaming.
Voting for Trump is dumber than playing Russian Roulette with fully loaded chambers.
Re: Splain This Rucy!
Matt,
Do you know what goes into Gross profit at a restaurant? I used a spreadsheet we have for building pro-formas.
Do you know what goes into Gross profit at a restaurant? I used a spreadsheet we have for building pro-formas.
“Blessed are those who are righteous in his name.”
― Matt
Posting Content © 2024 TC Talks Holdings LP.
― Matt
Posting Content © 2024 TC Talks Holdings LP.
Re: Splain This Rucy!
I'm pretty familiar with the restaurant industry. You picked McDonald's as an example, but again, most folks don't have the needed capital to open one. Most folks aren't blessed to have three quarters of a million dollars in liquid assets.
Lets look at the industry as a whole. The average profit margin in the industry averages around 5 percent. Full service operations being lower and limited service establishments a bit higher. In your example, you maintain that raising prices 8% would keep gross profit the same. That's not a true statement. First, as I mentioned, you neglected to account for higher expenditures in payroll taxes. Going from the current wage of 9.00 per hour to the new wage of 15.00 per hour not only adds 6.00 per hour in new wages, it also adds about .55 cents per hour in higher payroll taxes. That adds another 30,000.00 in labor costs (under your scenario) that you failed to include.
Second, although you maintain that the gross profit will remain the same with an increase in sales prices of 8% you fail to mention the importance of, and the effect it will have on, the profit margins on those "gross profits".
Third, because of the demographics that frequent limited service restaurants, (fast food) price points have become VERY important. Notice all the 5.00 meal price points the chains are advertising? Maintaining volume, traffic and cash flow to a operation like this is so, so important. NRA studies show that for every 10% a restaurant raises its prices, sales decline by about 09.5%. This creates a vicious circle because prices will have to increase even further to cover fixed costs and maintain profit margins.
Last, because many will adapt and change to maintain margins, owners will figure out how to do more with less. Which in the long run will hurt the people this is supposed to help.
Lets look at the industry as a whole. The average profit margin in the industry averages around 5 percent. Full service operations being lower and limited service establishments a bit higher. In your example, you maintain that raising prices 8% would keep gross profit the same. That's not a true statement. First, as I mentioned, you neglected to account for higher expenditures in payroll taxes. Going from the current wage of 9.00 per hour to the new wage of 15.00 per hour not only adds 6.00 per hour in new wages, it also adds about .55 cents per hour in higher payroll taxes. That adds another 30,000.00 in labor costs (under your scenario) that you failed to include.
Second, although you maintain that the gross profit will remain the same with an increase in sales prices of 8% you fail to mention the importance of, and the effect it will have on, the profit margins on those "gross profits".
Third, because of the demographics that frequent limited service restaurants, (fast food) price points have become VERY important. Notice all the 5.00 meal price points the chains are advertising? Maintaining volume, traffic and cash flow to a operation like this is so, so important. NRA studies show that for every 10% a restaurant raises its prices, sales decline by about 09.5%. This creates a vicious circle because prices will have to increase even further to cover fixed costs and maintain profit margins.
Last, because many will adapt and change to maintain margins, owners will figure out how to do more with less. Which in the long run will hurt the people this is supposed to help.
New York and Chicago were all in with respect to their sanctuary status — until they were hit with the challenge of actually providing sanctuary. In other words, typical liberal hypocrisy.
Re: Splain This Rucy!
Well it looks like we will see all those poor millionaires suffer once California and NYC implement their new minimum wage of $15.
I predict the economy continues to grow in these states.
By the way cutting taxes? Really bad idea for the economy.
http://m.huffpost.com/us/entry/kansas-e ... 84454.html
I predict the economy continues to grow in these states.
By the way cutting taxes? Really bad idea for the economy.
http://m.huffpost.com/us/entry/kansas-e ... 84454.html
“Blessed are those who are righteous in his name.”
― Matt
Posting Content © 2024 TC Talks Holdings LP.
― Matt
Posting Content © 2024 TC Talks Holdings LP.
- audiophile
- Posts: 8660
- Joined: Sat Dec 04, 2004 9:21 pm
- Location: Between 88 and 108 MHz.
Re: Splain This Rucy!
This plan will be ok for big businesses, mom and pops will forced out, or go underground.
Big businesses have the money to invest now in new machines to replace those minimum-wage employees.
Like self-serve gas stations - hello self-serve checkout lines only, automated factory jobs, crop harvesters and more.
Big businesses have the money to invest now in new machines to replace those minimum-wage employees.
Like self-serve gas stations - hello self-serve checkout lines only, automated factory jobs, crop harvesters and more.
Ask not what your country can do FOR you; ask what they are about to do TO YOU!!
Re: Splain This Rucy!
You know who's the most excited about this? It's not the low skilled workers who now will have even more limited job opportunities, nor is it the 25 and under crowd, especially blacks, that are suffering from record un and under employment. It's the union members in these heavily blue states.TC Talks wrote:Well it looks like we will see all those poor millionaires suffer once California and NYC implement their new minimum wage of $15.
I predict the economy continues to grow in these states.
By the way cutting taxes? Really bad idea for the economy.
http://m.huffpost.com/us/entry/kansas-e ... 84454.html
Why? Many private and public sector union contracts have wage increases tied to the minimum wage. When the minimum wage goes up, so does their pay. Champagne is flowing in the offices of labor bosses in both of these states.
New York and Chicago were all in with respect to their sanctuary status — until they were hit with the challenge of actually providing sanctuary. In other words, typical liberal hypocrisy.
Re: Splain This Rucy!
Those blue collar employees will probably appreciate it too... Without labor the bosses have no reason to celebrate.Bryce wrote:You know who's the most excited about this? It's not the low skilled workers who now will have even more limited job opportunities, nor is it the 25 and under crowd, especially blacks, that are suffering from record un and under employment. It's the union members in these heavily blue states.TC Talks wrote:Well it looks like we will see all those poor millionaires suffer once California and NYC implement their new minimum wage of $15.
I predict the economy continues to grow in these states.
By the way cutting taxes? Really bad idea for the economy.
http://m.huffpost.com/us/entry/kansas-e ... 84454.html
Why? Many private and public sector union contracts have wage increases tied to the minimum wage. When the minimum wage goes up, so does their pay. Champagne is flowing in the offices of labor bosses in both of these states.
- audiophile
- Posts: 8660
- Joined: Sat Dec 04, 2004 9:21 pm
- Location: Between 88 and 108 MHz.
Re: Splain This Rucy!
These folks are not worth $15 an hour:Bryce wrote:Try selling a 5 dollar pizza being made by people making 15.00 per hour. Not my business model by the way, but the guy who came up with it seems to be doing pretty well.TC Talks wrote:If you can't make money paying $15 an hour, maybe you shouldn't be in business. The $5 in productivity example suggests that maybe the problem isn't the wage, but the business concept.
.
If you think someone that has never worked before and has difficulty writing and reading can hit the floor in all positions and be worth 15.00 per hour out of the gate, your in some kind of pot induced utopia.
https://www.yahoo.com/news/burger-king- ... html?nhp=1
Ask not what your country can do FOR you; ask what they are about to do TO YOU!!
Re: Splain This Rucy!
That's fantastic!audiophile wrote:These folks are not worth $15 an hour:Bryce wrote:Try selling a 5 dollar pizza being made by people making 15.00 per hour. Not my business model by the way, but the guy who came up with it seems to be doing pretty well.TC Talks wrote:If you can't make money paying $15 an hour, maybe you shouldn't be in business. The $5 in productivity example suggests that maybe the problem isn't the wage, but the business concept.
.
If you think someone that has never worked before and has difficulty writing and reading can hit the floor in all positions and be worth 15.00 per hour out of the gate, your in some kind of pot induced utopia.
https://www.yahoo.com/news/burger-king- ... html?nhp=1
Re: Splain This Rucy!
Anyone still heartbroken that the minimum wage is going up in some of the more thoughtful places in the US?
Still want to cry poverty for the rich?
Still want to cry poverty for the rich?
Last edited by TC Talks on Sun Apr 10, 2016 8:52 pm, edited 2 times in total.
“Blessed are those who are righteous in his name.”
― Matt
Posting Content © 2024 TC Talks Holdings LP.
― Matt
Posting Content © 2024 TC Talks Holdings LP.