Quote:I'm a small business operator in business for 20 years now. My lowest cost employee makes more than I make. There's this thing called competition where if I raise my prices to compensate for higher minimum wage I lose customers to my competition. I've lived it for 20 years. I have menu items which haven't been increased in price in 10 years despite 4 increases in minimum wage over that period. I just eat the margin losses.

 

Why do I do it? I'm retired from the corporate world and receive a pension. I don't rely upon my business profits to pay for our living expenses. I am paying off the mortgage on my business property and my payoff will come when I sell the property. I also do it because a person must have something to do. God didn't make these bodies to be sedentary and there is only so much golf and fishing a person can do. However, if I had to pay $15 per hour for a high schooler to wash dishes I would be forced to lay off people and raise prices on items I thought I could without losing too many customers. If the reduction in customer volume was too much I would be forced to close and go work for Walmart.

 

Regards......................the Chiefjag

 

I just read a similar story as yours this weekend Chiefjag.  I'll see if I can find it again and link it here.  The story was pretty similar.  It was about a start-up company that employs around 15 people.  The owner expressed the same thing as you in the article, that he actually earns less than his employees (he also pays them more than the current minimum wage).  He went on to say that his company is doing well, and with some time he might be able to expand and also raise the wages of his employees.  He also talked about one other thing that is very important.  He said that he has a high turnover of employees, but it's expected.  As people that work for him learn skills that could lead to a better opportunity, they end up leaving.

 

He stated that if minimum wage goes up much more, he would end up having to fold, laying off his employees and giving up his business.

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