Monday, July 11, 2016

The Effect $15/min Wage Would Have on My Business

What would happen the day my business would be required to pay $15/hr to our employees?

In order for us to be able to pay our employees and pay our bills drastic changes would have to happen.

Three employees, out of 5 would immediately be laid off.  That is more than 1/2 of our work force. We love and need our employees and don't want to let them go, and they love working for and with us and don't want to go, but we would be forced to let them go because we can't afford to pay them $15/hr.

Over the years we have had to raise prices, small increases of a few cents here and there.  Even a few cents is difficult for many of our poorer customers.  We keep our prices just below or at the big box stores in order to be competitive.  We usually lose some customers with every price increase.  If the minimum wage increased, our prices would have to increase significantly, perhaps by as much as 25-50% in order to be able to pay our remaining staff wages and also for the increase in pricing that we will see from our vendors.  We see price increases every time they have increase in costs such as when gas prices go up or minimum wages go up.  We would no longer be able to compete with the big box stores who will be better able to absorb the increase in wages and inevitable loss of employees better than we will. Their prices will not increase, if at all, as much as ours will.  In case you didn't realize it, the costs to you, the consumer, will also increase.

Within a few weeks we will have lost the majority of our customers, our remaining staff will be exhausted and our store will close forever.