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Old 11-22-2016, 11:39 AM   #1 (permalink)
 
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min wage

since min wage is going up in some states are you guys having to adjust your prices, come Jan 1st? I know WA st min wage will go up to $11 in jan. any of you having to adjust or do you layoff people... or only hire seasonal? And keep some full time people.
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Old 11-22-2016, 12:35 PM   #2 (permalink)
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Re: min wage

These days I think most will lay off and adjust hours.
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Old 11-22-2016, 01:12 PM   #3 (permalink)
 
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Re: min wage

Our Minimum wage will be $12 per hr next July, my staff already make quite a bit more than that. In 3 more years we will be at a $15 minimum wage.

I have explained to the staff that we won't be hiring any bed cleaners going forward.

At $15 I just don't see kids being able to get a first job, everyone is automating. I am curious to see how a higher min wage works out.
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Old 11-22-2016, 01:34 PM   #4 (permalink)
 
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Re: min wage

It's crazy... min wage going up to $15 for us too.. I don't get how small business are going to be paying for all these "kids" working their first job... I think it should go by city by city.. and not state by state... I see allot of small business not making it... it'll be sad.. but I guess what can you do?
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Old 11-22-2016, 03:33 PM   #5 (permalink)
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Re: min wage

Most 14 year old babysitters nowadays make $10/hour.

When people make more money in wages, they are more likely to be stronger consumers.

When your staff makes more money, they are more likely to have a more reliable vehicle to make it to work on time.

That said, if you JUST pay more - and don't use it as a reason to investigate other areas where you may make changes to help offset - well, then those businesses probably will fail!

At the salon level, can do the following:

1. Raise your pay now, in advance, and seek out better quality staff NOW who already knows they are "worth" that much. Better staff will MORE than pay for themselves in higher sales made

2. Look for cost cutting measures you can take. Review your bills - is it time to review phone and internet plans? Insurance? Cleaning services used (do yourself or have staff do?)? "Miscellaneous" as you sometimes blend salon purchases with personal??

3. Change comp plan slightly - e.g. perhaps a minimum threshold of sales for commission (but then maybe higher % once at threshold...)

4. Review your marketing? Is is money well spent? Is it being done at all? Is Money Mailer coupon still effective or time to change it up?

5. What can you do to INCREASE traffic flow?? More bodies - more revenue. Have you gotten complacent? Are you getting your staff involved in helping??

and so on....


Increased minimum wage can be a POSITIVE for small business --- if you approach it like a business and adapt!
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Old 11-23-2016, 08:09 AM   #6 (permalink)
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Re: min wage

Quote:
Originally Posted by sunsally View Post
Most 14 year old babysitters nowadays make $10/hour.

When people make more money in wages, they are more likely to be stronger consumers.

When your staff makes more money, they are more likely to have a more reliable vehicle to make it to work on time.

That said, if you JUST pay more - and don't use it as a reason to investigate other areas where you may make changes to help offset - well, then those businesses probably will fail!

At the salon level, can do the following:

1. Raise your pay now, in advance, and seek out better quality staff NOW who already knows they are "worth" that much. Better staff will MORE than pay for themselves in higher sales made

2. Look for cost cutting measures you can take. Review your bills - is it time to review phone and internet plans? Insurance? Cleaning services used (do yourself or have staff do?)? "Miscellaneous" as you sometimes blend salon purchases with personal??

3. Change comp plan slightly - e.g. perhaps a minimum threshold of sales for commission (but then maybe higher % once at threshold...)

4. Review your marketing? Is is money well spent? Is it being done at all? Is Money Mailer coupon still effective or time to change it up?

5. What can you do to INCREASE traffic flow?? More bodies - more revenue. Have you gotten complacent? Are you getting your staff involved in helping??

and so on....


Increased minimum wage can be a POSITIVE for small business --- if you approach it like a business and adapt!
All true in a perfect world....... But in todays climate any extra money in a persons pocket would go to debt already owed.
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Old 11-24-2016, 10:46 AM   #7 (permalink)
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Re: min wage

Quote:
Originally Posted by sunsally View Post
Most 14 year old babysitters nowadays make $10/hour.

When people make more money in wages, they are more likely to be stronger consumers.

When your staff makes more money, they are more likely to have a more reliable vehicle to make it to work on time.

That said, if you JUST pay more - and don't use it as a reason to investigate other areas where you may make changes to help offset - well, then those businesses probably will fail!

At the salon level, can do the following:

1. Raise your pay now, in advance, and seek out better quality staff NOW who already knows they are "worth" that much. Better staff will MORE than pay for themselves in higher sales made

2. Look for cost cutting measures you can take. Review your bills - is it time to review phone and internet plans? Insurance? Cleaning services used (do yourself or have staff do?)? "Miscellaneous" as you sometimes blend salon purchases with personal??

3. Change comp plan slightly - e.g. perhaps a minimum threshold of sales for commission (but then maybe higher % once at threshold...)

4. Review your marketing? Is is money well spent? Is it being done at all? Is Money Mailer coupon still effective or time to change it up?

5. What can you do to INCREASE traffic flow?? More bodies - more revenue. Have you gotten complacent? Are you getting your staff involved in helping??

and so on....


Increased minimum wage can be a POSITIVE for small business --- if you approach it like a business and adapt!
An increase in minimum wage is not a positive tool for any industry. It takes away the employers power to hire workers at a reasonable rate and give raises to those who deserve it due to hard work. The government is forcing business to pay workers more than they are worth thus never allowing a employer to give a raise for hard work. This turns private industry into the apathetic useless unproductive industry that our federal workers have become.

Here's my example of how the minimum wage affects the private industry:

Worker #1: Hired @ 7.25 (federal minimum wage), works hard & EARNS pay increases at our store $.50 at a time will usually be at $10 within a year if a good worker. We spend a lot of time training, mentoring, and coaching this group to mold them into great workers.

Worker #2: Hired @ $10.10 (MD minimum wage 2018), work performance doesn't matter & we will not give pay increase easily as they are at our maximum but know nothing about industry. I see us tolerating a lot less of this group as we will not hire teenagers and will demand them to perform at a higher level.

The bottom line is there's no incentive for worker number #2 to work for their money. This worker is unproductive and clock puncher. If you want to experience to finest clock punchers known to man visit your local social security office, post office, DMV, or any other local state or federal government office.
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