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> > Labor accounts for half of the costs The actual quote is: > Labor accounts for half of the costs, he says Unless he shows me his books, I’m not gonna bel

> > Labor accounts for half of the costs The actual quote is: > Labor accounts for half of the costs, he says Unless he shows me his books, I’m not gonna believe that on just his word. Neither should you. > The margins aren't 11.5% either Again, I’d have to see his books before I concluded that the margins didn’t leave room for a <11.5% raise in labour costs. Remember - it would be less, since as he said only the most skilled cutters are earning +$30/hour.

AnthonyMouse 3y ago
> Labor accounts for half of the costs, he says "He" is the farmer. Who else would even know? > Again, I’d have to see his books before I concluded that the margins didn’t leave room for a <11.5% raise in labour costs. Books are just spreadsheets. They contain no authentication. You don't trust his word but you trust him to give you accurate numbers? We don't need some specific farmer's accounts to know which businesses have low margins. Farming is a notoriously competitive industry with razor-thin margins because the product is a fungible global commodity. > Remember - it would be less, since as he said only the most skilled cutters are earning +$30/hour. The 21% increase comes from paying 50% more for 30 of 70 hours, (0.5 x 30)/70 = 21%, the same percentage regardless of the base hourly wage. But it's actually worse than that, because for the overtime hours it's a 50% increase. Which is why they immediately get cut.