Quote:
Originally Posted by Minte
If they are successful all the fast food industry will do is raise their prices.
People love Walmart because they are cheaper than everyone else. How is it that they are cheaper? Their cost of goods wasn't less than K-mart when Walmart got going. They competed on a level playing field. What they did was start a price war with everyone else. The masses liked that and supported it. Once Walmart started to win the battles, they got leverage over their vendor base. So now they do pay less for the COG than everyone else. And then to make sure they would crush whoever came at them, they lowered prices again.
And the masses benefit.
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But you also probably know that if every WalMart employee got a 20% bump in salary, the owners of the company would be only marginally less rich. I'm not a major employer -- I'm a one man business, but there's a concept I definitely understand -- or maybe its more of a philosophy.
If you make your employees happy by giving them a wage that's livable in an economy where the cost of everything is rising, then they'll be happy to show up for work and do their best job to make your company thrive -- which means long term riches.
No one is going to profit in the long run if the people who work for them aren't satisfied with the pay their getting. Of course, there are limits that need to be set -- but those rich bastards at Walmart are pretty cheap. Like I said before, it's great that they built something and got rich from it, but at least have the attitude of taking care of the people who helped get you there -- instead of having employee based food drives.