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What about reducing your profit margins? Why is it "pass it to the consumer" all the time? What about slowing down salary increases for people _not_ making mini

by rtpg 5y ago

What about reducing your profit margins? Why is it "pass it to the consumer" all the time? What about slowing down salary increases for people _not_ making minimum wage? "Costs get passed to consumer" seems to happen way more than "savings get passed to consumer" in the discourse. When you have someone at HQ making 5 times what your lowest-earning person makes, you could let go of that person, increase wages for 25 people by 20%, and probably improve a hell of a lot of stuff. And that's cost-neutral!

jkhdigital 5y ago
You clearly know what’s up. Just go apply for some CEO positions, be the change you want to see in the world.
- rtpg 5y ago
  I just understand that people who run companies aren't looking to have a 0% profit margin.
SllX 5y ago
Because that’s more often than not the better outcome for the owners. A profitless venture is one that won’t sustain itself in the long run. Small business owners as it is often take home less than minimum wage for the hours they put in when you factor in what they receive at the end of the year. Medium business owners often have it rougher because they’re in that awkward place in the market where they have both a high headcount and low margins. Big businesses can often do what they want within reason, but it’s not like every corporate out there is Apple with massive margins to work with. Big businesses also fail, or have to sell off profitless parts of their business, or get taken over by some holding company. Also: it doesn’t matter what you or I would prefer them to do. The owners of a business are going to look at their costs, the economics of the market and make a determination for themselves. If they’re put in a position where they have to raise prices just to continue earning a small profit at all, and they lose enough customers, then they’re just going to go out of business anyway.

by rtpg 5y ago

jkhdigital 5y ago

You clearly know what’s up. Just go apply for some CEO positions, be the change you want to see in the world.

rtpg 5y ago
I just understand that people who run companies aren't looking to have a 0% profit margin.

SllX 5y ago

Because that’s more often than not the better outcome for the owners. A profitless venture is one that won’t sustain itself in the long run. Small business owners as it is often take home less than minimum wage for the hours they put in when you factor in what they receive at the end of the year. Medium business owners often have it rougher because they’re in that awkward place in the market where they have both a high headcount and low margins. Big businesses can often do what they want within reason, but it’s not like every corporate out there is Apple with massive margins to work with. Big businesses also fail, or have to sell off profitless parts of their business, or get taken over by some holding company. Also: it doesn’t matter what you or I would prefer them to do. The owners of a business are going to look at their costs, the economics of the market and make a determination for themselves. If they’re put in a position where they have to raise prices just to continue earning a small profit at all, and they lose enough customers, then they’re just going to go out of business anyway.