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And yet there are stores like Costco which do pay their employees quite comfortable wages and manage not to immediately bankrupt themselves. How is this so?
by auiya 7y ago
And yet there are stores like Costco which do pay their employees quite comfortable wages and manage not to immediately bankrupt themselves. How is this so?
- AnthonyMouse 7y agoDifferent business models. Walmart sells a 10 oz box, Costco sells a 100 oz box using the same number of employees which allows them to pay each employee more. They employ fewer people per quantity of goods sold. Walmart could sell 100 oz boxes, but then they wouldn't have the same customers. People who don't have the cabinet space or the money to buy everything in bulk couldn't shop there anymore. Then some other discount store selling in smaller quantities would spring up to serve those customers and they'd be the ones who couldn't pay higher wages.