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Is it easier for mom and pop to compete because they already pay a higher wage? That is, mom and pop pay a higher cost of labor compared to the big boys?
by matthavener 16y ago
Is it easier for mom and pop to compete because they already pay a higher wage? That is, mom and pop pay a higher cost of labor compared to the big boys?
- Vivtek 16y agoNo, they pay higher purchase prices due to lack of economies of scale and lack of access to Chinese labor (see post above about China not wanting a billion rioting Chinese laborers). They probably also pay somewhat more because Walmart doesn't care if they lose people to turnover, while a small store does. But that's not what's putting the small stores out of business.
- ams6110 16y agoWalmart doesn't care if they lose people to turnover Source? Turnover is a high cost to any business, and if there's one thing Walmart is good at it's watching expenses.
- Vivtek 16y agoWell, obviously they do - but the cost to Walmart of a single employee leaving is negligible, while that to a small store is a serious loss of investment. Walmart "cares" only in the very large aggregate.
- mynameishere 16y agoSmall stores almost always pay less, and sometimes pay nothing (with family working). This is why walmart actually lobbied for an increase in the minimum wage--to increase costs for smaller stores.