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As you pay truckers more at some point it doesn’t make economic sense to hire them. Some jobs are cost centers others are profit centers is one way of looking a
by dkasper 8y ago
As you pay truckers more at some point it doesn’t make economic sense to hire them. Some jobs are cost centers others are profit centers is one way of looking at it. Another factor is industries like trucking have very little differentiation so it’s a race to the bottom.
- lev99 8y agoAs you increase driver pay delivery costs increase. If the shortage was real it would mean deliveries are not being made that would have happened at an increase in delivery cost.
- gaius 8y agoThe goods being in location A rather than location B is the value add. Logistics is a profit centre, not a cost.
- mi100hael 8y agoOf course the actual act of shipping the goods is a profit center. But payroll is a cost center in every industry I'm aware of. You can't just 10x your shipping costs in order to pay your truckers 10x the salary and expect to remain in business.
- gaius 8y agoThe payroll costs are usually included in each “centre”
- ryguytilidie 8y agoWhy does debate always turn into this? No one suggested much more than a ~1.5xish pay increase yet the response is "you expect them to pay 10x the salary and remain in business??"? What is the goal of just exaggerating and debating a thing no one says versus just debating what people are actually saying?