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Min Wage Increase Doesn't Impact Employement


Washpark

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20 minutes ago, Bozo_Casanova said:

I would bet folding money that nobody on this board has spent more time eating restaurant food in more 3rd and 4th tier towns in the lower 48 than I have (including Weatherford, Granbury, Mineral Wells, Cleburne, etc), but I’m also capable of understanding that struggling local economies aren’t representative of growing ones. There is no such thing as the “$2.31/hr + tip model.” There are a few places with very few opportunities where an employer can get away with paying the minimum wage. In most places that are hiring, they can’t. 

I can guarantee you that the restaurants don't more than the $2.31 in most places I've lived.  But, then, the tipping has always been good enough that they didn't have to...

When you ate in Weatherford and Granbury or Cleburne, those folks were making the $2.31/hr.  But, everyone tips and they all go home with much more than $7.25/hr.

The restaurants aren't making it up the difference between $2.13 (just got corrected that it's not $2.31 by my son's GF) and $7.25 IN ADDITION, though...

Quote

I’m a big fan of that model- also makes it easier to hold onto line cooks. Tipping is bad for business. 

I agree.  Just tell me my price. 

If the server did something special, I'll reward them.

Hence, my view on this subject.  If you're getting paid $15/hr, you're off the tipping model in my opinion.

Edited by Ag with kids
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27 minutes ago, Ag with kids said:

Doesn't mean the government should mandate that you get more.

In our democracy, the people that you and me hire are hired with the explicit task of promoting the general welfare. The United States of America is rich as fuck and the general welfare is a downward trajectory. Stop making excuses.

 

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11 minutes ago, Al Bundy's Napoleon Hand said:

In our democracy, the people that you and me hire are hired with the explicit task of promoting the general welfare. The United States of America is rich as fuck and the general welfare is a downward trajectory. Stop making excuses.

 

Promote != Provide

 

hth

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13 minutes ago, Ag with kids said:

Promote != Provide

 

hth

...and if four decades plus post-Sea Change of an empty Rising Tide lifting all boats promise results in exactly what its critics said it would do, what do you think is government's constitutional obligation? 

Edited by Al Bundy's Napoleon Hand
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14 hours ago, Ag with kids said:

I have no disdain for the MW worker.

That is separate from my position on this issue.

If I go to a fast food restaurant or a 7/11, I'm not tipping.  Because their pay model is based on the establishment paying them and incorporating that cost into the price of whatever product I'm purchasing.

Do you tip at Walmart...oh sorry, that's too plebeian for you...Do you tip at Whole Foods?  If not, why not?  They're working just the same as servers.  But, then, their pay model isn't built on the tipping model.  Even though they probably make less than your barista or the server at Applebees.

BTW, if the MW goes up to $15/hr, I know that cost will be baked into the groceries I buy at HEB.  But, then it will ALSO be baked into the Applebees.  So, now their model isn't the $2.31/hr tipping model.  It's being paid by the restaurant.  No need to for the customer to pay it now.

BTW, Applebees was only good for one thing, drinking beer late when I lived in Weatherford.  Don't even know if we have one here and not anxious to find out.

Not trying to make a statement, just explaining my position on tipping.

Before I was well off I had a well off friend tell me, when I pressed him about overtipping, about the marginal value of that extra $5 and how it means more to them than it could ever mean to him. That unlocked something in my brain.

Now that I have a lot of means, I love to tip. It’s an easy and near effortless way to spread some kindness and love and be of service to people. I love to overtip and make a downtrodden persons day. I love tipping the Costco and Target guy/gal loading my trunk because their surprise and joy is awesome. I love tipping $50 on a $20 diner ticket because you just know that is a material and meaningful impact on their day to day life.

if people could do better and earn more, more than likely they would. I’m not talking about the steakhouse server making $100k/yr at Nick & Sam’s or the bar tender at a popular spot taking in the money. You know the people I’m talking about and the fact these people have to work for min. wage means they are worthy of what little noblesse oblige I have.

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1 hour ago, Vegas64 said:

Before I was well off I had a well off friend tell me, when I pressed him about overtipping, about the marginal value of that extra $5 and how it means more to them than it could ever mean to him. That unlocked something in my brain.

Now that I have a lot of means, I love to tip. It’s an easy and near effortless way to spread some kindness and love and be of service to people. I love to overtip and make a downtrodden persons day. I love tipping the Costco and Target guy/gal loading my trunk because their surprise and joy is awesome. I love tipping $50 on a $20 diner ticket because you just know that is a material and meaningful impact on their day to day life.

if people could do better and earn more, more than likely they would. I’m not talking about the steakhouse server making $100k/yr at Nick & Sam’s or the bar tender at a popular spot taking in the money. You know the people I’m talking about and the fact these people have to work for min. wage means they are worthy of what little noblesse oblige I have.

I'm not morally opposed to tipping.  In fact, as I posted earlier, I tend to tip at least 25% (unless service was really bad).

But, that's because the server's pay model is BASED on me tipping them.  I don't tip the counter person at Stripes when I grab my Laredo tacos...It's not their pay model.

If someone goes above and beyond, then sure, I toss them a few bucks.  I make sure I have a few bucks for the shuttle guy at the Hilton when he takes us to MDA even though it's just a few min and it's his job...but, I really appreciate that he's helping the GF get better.

But, if everyone was really concerned about pay, then why tip the server at a restaurant and not the guy at Subway that takes your order AND makes your meal?  It's about money in their pocket, right?  Or the guy that checked you out at 7-11?  He probably could REALLY use the few extra bucks (sure, it's for meth, but whatever).

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5 hours ago, Pato del Muerto said:

The same businesses that used inflation as cover to increase margins?

So you can better understand how companies have to operate in high inflation times...

 

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Consider a manufacturer of copper cookware that generates all its revenue from the sales of ten thousand copper pans every year. Each year the manufacturer pays $1 million to buy the raw material and pay the labor required for manufacturing those ten thousand units, then sells each unit at $120, which adds up to total sales of $1.2 million. If there is no inflation, the manufacturer can pocket $200,000 from the sales proceeds and use the remaining $1 million to buy the raw material and pay the labor needed to manufacture ten thousand pans next year. This amounts to a 20 percent pretax profit margin.

As long as the input costs do not rise, the manufacturer can do that year after year and keep its profit margin at 20 percent. However, if some input costs, such as copper prices, go up, this changes the whole equation. Imagine an inflationary environment where the manufacturer expects the cost of raw materials and the cost of labor for next year to go up on average 10 percent to $1.1 million for producing ten thousand units. The manufacturer has to increase the price of copper pans to be able to collect at least $1.3 million in sales.

After pocketing $200,000, they end up with $1.1 million which is just enough to pay the higher cost of raw material and labor for the next year’s production of ten thousand pans. However, for the purposes of profit margin calculation, the manufacturer has to report this year’s cost, which was $1 million amounting to a 30 percent profit margin. The reality is that the manufacturer is not getting wealthier. They are still only pocketing $200,000, yet the profit margins are inflated.

 

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14 minutes ago, Ag with kids said:

I get the general point, but just wanna point out that sinking a million into something that might make a big 200 thousand, when the price goes up and down, means that company will always be a couple of years from its next crisis.

My goblin overlords insist that I go for things that make at least 200% profit over costs, not 20%.

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Is Houston a competitive market for waiters and servers?   Becuase one of the Macanudo-ettes waits tables in Spring and makes $2.13 an hour + tips.   

She should find a new job and we're working on that but it's the 2nd restaurant she's worked at that paying that rate.  It's not unusual in Texas, boom market or bust.

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1 hour ago, RDCanecutter said:

I get the general point, but just wanna point out that sinking a million into something that might make a big 200 thousand, when the price goes up and down, means that company will always be a couple of years from its next crisis.

My goblin overlords insist that I go for things that make at least 200% profit over costs, not 20%.

Congrats on working for Apple???? ;)

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14 hours ago, Ag with kids said:

I'm not morally opposed to tipping.  In fact, as I posted earlier, I tend to tip at least 25% (unless service was really bad).

But, that's because the server's pay model is BASED on me tipping them.  I don't tip the counter person at Stripes when I grab my Laredo tacos...It's not their pay model.

If someone goes above and beyond, then sure, I toss them a few bucks.  I make sure I have a few bucks for the shuttle guy at the Hilton when he takes us to MDA even though it's just a few min and it's his job...but, I really appreciate that he's helping the GF get better.

But, if everyone was really concerned about pay, then why tip the server at a restaurant and not the guy at Subway that takes your order AND makes your meal?  It's about money in their pocket, right?  Or the guy that checked you out at 7-11?  He probably could REALLY use the few extra bucks (sure, it's for meth, but whatever).

You don’t tip Subway folks? Damn.

Piker.

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