Minimum wage increase passes House

[Pburgh]

Sorry but for a small business working on very slim margins $4,400 a year per employee is a lot of money.

[swimaster20]

Sorry but for a small business working on very slim margins $4,400 a year per employee is a lot of money.

Yes, it is a lot of money. I know my family makes a living, but people who have never owned their own small business don't know that every increase in expenses hurts because if you go up in your product prices, your customers will go elsewhere. Also, small businesses have up and down months. You can have your best month ever one month, and the next month could be horrible. You just never know.

[cajungal]

If it was not for my parents, I would probably be on the street right now. Because I basically live paycheck to paycheck just trying to pay my car note, car insurance, cell phone bill and to put down at least the mininum payment on my credit card. I would never, ever be able to come with rent money on the money I am making now, much less utilties, food, etc... Or any money left over to enjoy life. That is why you really need a good education and a college degree to make a decent living. Retail does not pay well at all, I asked for full time at least 3 times and they refused. They cut me down to 20 hours this week since the holidays are over. I don't have any benefits and worry all the time about being sick. I have thyroid problems that I must see a doctor for, plus severe IBS that has landed me in ER several times. Please pray that I find another job soon. Everytime I send off a resume or an application, they never call me back. Even if I try over and over again, it is like nobody will give me a chance. I don't think I can handle this stress much longer.

[gtalum]

Sorry but for a small business working on very slim margins $4,400 a year per employee is a lot of money.

Yes, it is a lot of money. I know my family makes a living, but people who have never owned their own small business don't know that every increase in expenses hurts because if you go up in your product prices, your customers will go elsewhere. Also, small businesses have up and down months. You can have your best month ever one month, and the next month could be horrible. You just never know.

FWIW, I am a small business owner.

This scenario is precisely why it doesn't make sense to try to sell with price as the primary factor. You have to differentiate yourself from your competition and sell with service as the primary factor. Then you can afford to raise the price when necessary and keep your customer base. When customers try to nickel and dime me, I kindly give them the number of a competitor who likes to sell his product at bottom dollar. They generally come back to me within a year because in this world you truly do get what you pay for. In the meantime I keep healthy margins even as raw material, labor, and overhead costs skyrocket.

[gtalum]

cajungal, have you considered the option of attending college right now? While it may seem difficult, you are at an ideal time to do it. You have relatively low costs, since you are living with your parents. You are working fewer hours than you can or want to work. It's a good time to examine the option of attending community college and going for an Associate's Degree in something that interests you. Community colleges are generally less expensive than full-time universities, and with student loans you won't have to pay very much up front. Look at it as an investment in your future.

[JonathanBelles]

when will it pass the senate? is that all of the "hoops" it has to go through?

[gtalum]

when will it pass the senate? is that all of the "hoops" it has to go through?

Since the last congress adjourned without passing it, they have to start all over. A bill has to pass in the house of representatives, then a bill has to pass in the senate. After that the two houses of congress have to reconcile the bills to make them exactly the same. Then the new compromise bill goes back to both houses to be passed again. Finally the president has to sign the bill, then it becomes a law.

[JonathanBelles]

when will it pass the senate? is that all of the "hoops" it has to go through?

Since the last congress adjourned without passing it, they have to start all over. A bill has to pass in the house of representatives, then a bill has to pass in the senate. After that the two houses of congress have to reconcile the bills to make them exactly the same. Then the new compromise bill goes back to both houses to be passed again. Finally the president has to sign the bill, then it becomes a law.

wow that sounds llike a lot of work.

[Pburgh]

cajungal, I agree with gtalum on this one. With grants and student loans and the extra time you have, this seems like a perfect fit for you.

gtalum, not everyone can keep those healthy margins. In some industries the price of those raw materials cannot be controlled nor will the market allow them to be passed on. Owners must absorb those costs thus decreasing their profit margin regularly and sometimes drastically. And certainly service is a major factor but it really depends on your business. With many, price is the prime factor. I would love to be in an industry or business like yours where almost nothing affects your healthy margins. Amazing

[gtalum]

wow that sounds llike a lot of work.

Yes, that's why it takes forever to get anything done in DC. Generally, this is a good thing.

[Brent]

wow that sounds llike a lot of work.

Yes, that's why it takes forever to get anything done in DC. Generally, this is a good thing.

Especially with two-party control now. Gridlock. Gridlock. Gridlock.

[gtalum]

Especially with two-party control now. Gridlock. Gridlock. Gridlock.

Yes. I think minimum wage increase will be passed, but I bet not much else of consequence happens in the next two years. I predict that the Democrats will be passing a lot of popular bills in the house and senate to force the President to veto it. Basically the '08 campaigns started Wednesday.

[GalvestonDuck]

Especially with two-party control now. Gridlock. Gridlock. Gridlock.

Yes. I think minimum wage increase will be passed, but I bet not much else of consequence happens in the next two years. I predict that the Democrats will be passing a lot of popular bills in the house and senate to force the President to veto it. Basically the '08 campaigns started Wednesday.

Let's put the brakes on that point.

And that's not directly exclusively at you, GT. Believe me, I'd love to have my say about certain candidates, but I'll take it to other boards.

[Lindaloo]

Also gtalum, your constant argumentative posts are boring. What works for you, does not work for others.

Telling someone to rethink their business was very innappropriate.

[gtalum]

Telling someone to rethink their business was very innappropriate.

The most common mistake small business owners make is to become emotionally attached to their business so that they cannot let it go under any circumstances, even when it's the best thing to do. That's how people end up financially ruined.

If margins are so thin that a $2 per hour raise for your employees will put you under, it really IS a good time to rethink the business plan.

[Pburgh]

You aren't serious, are you???

[gtalum]

You aren't serious, are you???

If I wasn't serious, I probably wouldn't have repeated the point.

It's good advice, even if it's harsh.

[Pburgh]

How many employees do you have?

[gtalum]

How many employees do you have?

7, including myself. And yes, if I had to I could afford to pay all of us another $2 per hour. I wouldn't like it, but I could do it.

I start my employees at $10 per hour, though, with a raise to $11 per hour at 90 days if they end up working out.

[Pburgh]

Do you pay their health insurance?