Dan Price raises minimum wage at his company to $70,000 a year

[barbos]

Really?
I know australian dollar is smaller and taxes are probably high, but still $60k ($50k is USD) in retail is ridiculous.

I'm betting that you have interpreted that as the average wage for checkout operators and storepersons, which it quite obviously isn't.

Actually I did not. I had thought about asking but then decided to assume that average means average for actual retail people (excluding management monkeys and such). But since you asked I am going to ask too, how is average defined?
I would like to know if anyone in retail in US have $50k?

 

[bigfield]

I'm betting that you have interpreted that as the average wage for checkout operators and storepersons, which it quite obviously isn't.

Actually I did not. I had thought about asking but then decided to assume that average means average for actual retail people (excluding management monkeys and such). But since you asked I am going to ask too, how is average defined?
I would like to know if anyone in retail in US have $50k?

It includes managers, and does not include checkout operators and storepersons as they are not salaried.

The figure is from Seek's Retail and Cosnumer Product's category. You can see which jobs are included here.

The figures are most certainly not ridiculous, unless you are used to seeing people get paid absolutely shithouse wages.

 

[barbos]

Actually I did not. I had thought about asking but then decided to assume that average means average for actual retail people (excluding management monkeys and such). But since you asked I am going to ask too, how is average defined?
I would like to know if anyone in retail in US have $50k?

It includes managers, and does not include checkout operators and storepersons as they are not salaried.

Then that number is bullshit.
Also Australia has a bit higher per capita GDP than US. Thanks to mining and China buying it.

The figures are most certainly not ridiculous, unless you are used to seeing people get paid absolutely shithouse wages.

Apparently I am.

 

[DBT]

It includes managers, and does not include checkout operators and storepersons as they are not salaried.

Then that number is bullshit.
Also Australia has a bit higher per capita GDP than US. Thanks to mining and China buying it.

The figures are most certainly not ridiculous, unless you are used to seeing people get paid absolutely shithouse wages.

Apparently I am.

There have been threads on minimum wage rate, where a comparison between the US and Australia was brought up... the MW rate being significantly higher in Australia even when adjusted for the differences in living cost between the US and Aus.

 

[bigfield]

It includes managers, and does not include checkout operators and storepersons as they are not salaried.

Then that number is bullshit.
Also Australia has a bit higher per capita GDP than US. Thanks to mining and China buying it.

It said, quite clearly in DBT's post, that the figures were for salaried positions only. Anyone paid per hour does not count.

And the US has a higher per capita GDP than Australia:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

Americans are getting ripped off. As if that wasn't already obvious with disgraces such as Walmart.

 

[barbos]

Then that number is bullshit.
Also Australia has a bit higher per capita GDP than US. Thanks to mining and China buying it.

It said, quite clearly in DBT's post, that the figures were for salaried positions only. Anyone paid per hour does not count.

Then it's bullshit, do you agree with that?

And the US has a higher per capita GDP than Australia:

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

Well, it's PPP dollars, wages are not in PPP dollars.

It's actually ironic because the reason why US is better in PPP GDP than Australia and yet worse in nominal GDP is underpaid Walmart and such workers

Americans are getting ripped off. As if that wasn't already obvious with disgraces such as Walmart.

It's true, but some are ripped off more and some are less. And $70k minimum at credit card company is as much as disgrace as Walmart or $30k for PhD.

 

[DBT]

Minimum pay rate in America is a disgrace. Including, most probably, pay rates that are a fair way up their scale.

 

[barbos]

Minimum pay rate in America is a disgrace. Including, most probably, pay rates that are a fair way up the scale.

I agree with that, but maximum pay (for ordinary professions) in US is a disgrace too.

 

[DBT]

Minimum pay rate in America is a disgrace. Including, most probably, pay rates that are a fair way up the scale.

I agree with that, but maximum pay (for ordinary professions) in US is a disgrace too.

What pay rates are you thinking about as examples of the latter?

 

[barbos]

I agree with that, but maximum pay (for ordinary professions) in US is a disgrace too.

What pay rates are you thinking about as examples of the latter?

Doctors, lawyers, Gravity payment employees
Also CEOs in some cases.

 

[ksen]

I don't see how paying a clerk with high school diploma more than PhD working on cure for cancer is fair.

Did you ever stop to think that maybe the problem isn't that a clerk is being paid $70k but that the PhD is getting extremely underpaid and that the way to fix it is to up the salary of the PhD instead of tearing down the salary of the clerk?

 

[dismal]

So the bottom line here is that Gravity is still profitable, and that Dan Price does expect profits to go up long-term, and he does expect his "super duper happy workers to offset the additional costs by working harder and/or smarter", and that his socially conscious business model will increase his client base.

LOL, he can say he's the Easter Bunny but that doesn't mean it's true.

He's giving up 80% of the company profits and his million dollar salary and what does he get?

The same workers doing the same jobs.

Are the processing clerks who now make twice as much going to process twice as many transactions? Are the phone call answerers going to answer twice as many phone calls?

Is the argument that the people working for him are total slackers and that problem will be fixed by randomly giving them lots of money?

Anyway, the fact that you were able to turf up so many articles of this guy running his mouth lends more credence to the publicity stunt angle.

 

[ksen]

Are the processing clerks who now make twice as much going to process twice as many transactions? Are the phone call answerers going to answer twice as many phone calls?

Probably, since it seems Gravity is about to get a lot more business.

 

[dismal]

Are the processing clerks who now make twice as much going to process twice as many transactions? Are the phone call answerers going to answer twice as many phone calls?

Probably, since it seems Gravity is about to get a lot more business.

It's sad you think his current employees are such slackers.

And that you think it was a publicity stunt.

So cynical.

 

[ksen]

1/10

 

[Rhea]

The same workers doing the same jobs.

So, I don't think this is what he gets. I think he is going to get the same people doing much better work. Focused, excited, energized. Hyped. Ownership, teamwork, collaboration. Going above and beyond what is typically expected or produced.

I have known several people who have been given great support by a company when they went through a tragedy. Unlimited time off, help with flex hours, substantial assistance. Those people, now that their tragedy is (sadly) over, are now intensely loyal and will put back far more than they ever got in order to pay back, in their way, for the priceless benefit of not having to worry at all about work or their future while they endured a loved one dying.

I think the guy gets back something like this.

I expect most of those employees will see this as many levels; the CEO caring about them, the everyday worries being lifted from them, the message that they are all intricately entwined in their value to the company. And that this will translate into intense loyalty and desire to give back more than they are even receiving.

I really look forward to seeing the results. I think they will be dynamite.

 

[dismal]

The same workers doing the same jobs.

So, I don't think this is what he gets. I think he is going to get the same people doing much better work. Focused, excited, energized. Hyped. Ownership, teamwork, collaboration. Going above and beyond what is typically expected or produced.

I have known several people who have been given great support by a company when they went through a tragedy. Unlimited time off, help with flex hours, substantial assistance. Those people, now that their tragedy is (sadly) over, are now intensely loyal and will put back far more than they ever got in order to pay back, in their way, for the priceless benefit of not having to worry at all about work or their future while they endured a loved one dying.

I think the guy gets back something like this.

I expect most of those employees will see this as many levels; the CEO caring about them, the everyday worries being lifted from them, the message that they are all intricately entwined in their value to the company. And that this will translate into intense loyalty and desire to give back more than they are even receiving.

I really look forward to seeing the results. I think they will be dynamite.

So, you pay a records processing clerk twice as much and they process twice as many records? This is what it would take to get you back to even on a cost per record basis.

That suggests they are slacking quite a bit now.

 

[KeepTalking]

I see, the guy apparently managed to compete with VISA/MasterCard. I did not know it was even possible, good for him. But this explains why he is doing so well, this whole business is based on overcharging businesses (actually card owners indirectly), so charging slightly less can get you a lot of clients. And again I don't understand how it's possible.

Gravity is not competing with the credit card companies like Visa/MasterCard, they are competing with companies like BankCard Services.

The credit card companies do not process the point of sale CC transactions, this is done by third parties, who charge businesses for the service, and often charge transaction fees as well. When credit cards were fairly new, the fees often ended up being paid by the customer, you would pay more when you used your credit card than if you used cash. It is much less likely for this to happen now that credit cards are ubiquitous. People might avoid shopping at your store if you charge them more to use their cards, and they don't typically carry cash. So, businesses have to eat the processing cost as a cost of doing business. Price apparently found a way to provide the CC processing service for less money, and built a profitable business around it.

 

[barbos]

I don't see how paying a clerk with high school diploma more than PhD working on cure for cancer is fair.

Did you ever stop to think that maybe the problem isn't that a clerk is being paid $70k but that the PhD is getting extremely underpaid and that the way to fix it is to up the salary of the PhD instead of tearing down the salary of the clerk?

I think it's both.

 

[barbos]

I see, the guy apparently managed to compete with VISA/MasterCard. I did not know it was even possible, good for him. But this explains why he is doing so well, this whole business is based on overcharging businesses (actually card owners indirectly), so charging slightly less can get you a lot of clients. And again I don't understand how it's possible.

Gravity is not competing with the credit card companies like Visa/MasterCard, they are competing with companies like BankCard Services.

The credit card companies do not process the point of sale CC transactions, this is done by third parties, who charge businesses for the service, and often charge transaction fees as well. When credit cards were fairly new, the fees often ended up being paid by the customer, you would pay more when you used your credit card than if you used cash. It is much less likely for this to happen now that credit cards are ubiquitous. People might avoid shopping at your store if you charge them more to use their cards, and they don't typically carry cash. So, businesses have to eat the processing cost as a cost of doing business. Price apparently found a way to provide the CC processing service for less money, and built a profitable business around it.

OK, that explains it, but http://www.bankcardservicesinc.com/ guarantees better service or they pay you $525
At least this guy provides some useful service unlike VISA/MasterCard who created a nice cartel and now just tax everybody. So I may take back a little of my trashing. Still, makes you wonder what is the differentiation factor for the competition in that terminal business, at some point it just gets to the point where merchants want it work and that's it.