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View Diary: Abbreviated Pundit Round-up: The future of polling, the NRA's PR machine and more (89 comments)

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  •  I ran a business (4+ / 0-)
    Recommended by:
    salmo, Tuba Les, sfbob, BusyinCA

    and my payroll and benefits was NEVER more than 20% of total gross income.  I kept losses down under 3% and made a profit of over 20% a year.  Usually had about a staff of 10-12 people of which a good half of them were full time and made significantly higher than minimum wage and I carried a few part timers who were mostly 18 or under and would work 20 or so hours on nights and weekends.  They made the minimum wage, but in CT our minimum wages are significantly higher than the federal minimum.  The way I was able to do it was by increasing sales.  I took the business over from someone who was losing money and was getting robbed left and right by her employees.  I fired the employees, hired new ones I trained myself, kept close tabs of my inventory, worked the customers for sales and voila! the sales doubled and profits soared even with higher wages.  I was willing to pay a bit more for good employees and the results spoke for themselves.

    So when any small business person bitches about wages and not making a profit I call bullshit.

    This is your world These are your people You can live for yourself today Or help build tomorrow for everyone -8.75, -8.00

    by DisNoir36 on Thu Feb 14, 2013 at 06:44:51 AM PST

    [ Parent ]

    •  it depends on your industry but for a medical (0+ / 0-)

      clinic, physician compensation is 50% of gross.  The numbers I cited was for a restaurant or retail outlet.  The 3% markup was for grocery stores but the general numbers hold from industry to industry.  When staffing costs exceed 25% you have problems which could shutter your windows

      •  Retail (2+ / 0-)
        Recommended by:
        entlord, sfbob

        Medical is a bit different.  I guess when I was saying small business I was referring to restaurant or retail.  Your classic mom and pop shop.  Restaurant is a bit different in that most of the staff don't have benefits and the wages are super low because most of the waitstaff income comes from tips.  However, you have more people working at one time from cooking, prepping, hostessing, waiting and cleaning.  But I agree with you on the 25%.  If you're paying out 25% in wages and benefits something is wrong and usually it's not that you pay too much but that  you just bring in too little income.  Of course unless you're the typical GOoPer who rewards themselves (embezzles), their family and friends handsomely and in the process drive the business into the ground.

        This is your world These are your people You can live for yourself today Or help build tomorrow for everyone -8.75, -8.00

        by DisNoir36 on Thu Feb 14, 2013 at 07:51:15 AM PST

        [ Parent ]

        •  Market dynamics shift? (1+ / 0-)
          Recommended by:
          entlord

          How would a change in the minimum wage change the market balance between Main Street and WalMart/MacDonalds?  In our very rural end of the country, it seems to me that forcing the outfits that depend on low wage workers to take market share from local business people who mostly staff the stores themselves and with family would tip the balance a bit towards those Main Street businesses.  But, most Americans don't live and shop in small towns and rural areas.  

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