General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMy first OP - and it relates to wage theory.
Thanks you for all of your time,
This is my first OP since ive had a chance since getting to 10 posts.
I'm not American, Israeli so take everything with a grain of salt (Though I do currently live in the states, hence my OP). And English sure is not my best language by I will do my best to express my sentiments.
I want to talk about the wage gap.
Costco is managing incredible gains for a good reason. They had decent prices, everyone there is chatty and helpful, etc. Walmart. Is in I would not call it decline. But definitely not sustainable.
Why not pay a lot more for good people? Just the differential from retraining people has to pay itself over many times.
I hope more business' emulate costco. I see it as an example to the industry. When most of them suck.
Oh well my first OP - Thank you for everyone that has welcomed me in a couple of posts before. It has been nice.
Rhiannon12866
(206,302 posts)Welcome to DU and congratulations on your first OP, xenoturkey! It's great to have you with us!
xenoturkey
(68 posts)Thank you very much. English kind of gets me sometimes, its not the easiest way for me to express an opinion, so I hope I got it.
Rhiannon12866
(206,302 posts)And your English is much better than my Hebrew...
zeemike
(18,998 posts)I could see no error in your English...and welcome to DU,
xenoturkey
(68 posts)And it doesn't have much to do with meaning good night.
I realize its very early in the morning. Im in Alaska helping train some people for new positions as a military liason. But my english is never the best. It slurs with hebrew and spanish (Spent a lot of time in SA).
Anyway, thank you again. Very much.
Warpy
(111,383 posts)is that they charge customers yearly membership fees. I honestly don't see that type of business model catching on at other big box stores. They're going for the bottom of the retail market and I hear the same bad things about the one attempt--Sam's Club--that I do about its parent company, Walmart. Needless to say, Sam's Club doesn't pay any better than Walmart does and it does show.
Shopping at Costco really is a different experience, the employees are damned glad to have decent jobs in a poor state where wages are indecently low. I see the same faces all the time there so I know turnover is very low, allowing them to dodge the huge costs of training new hires every few weeks that other big box stores have.
Also, the products they carry are excellent, unlike the rather borderline stuff Wally's often has.
I know I feel better dropping money at Costco than I do elsewhere because I know their employees are being treated fairly.
I have to wonder about the big box stores who rely on the government subsidizing their lousy wages, whether the costs associated with high turnover might be higher than simply paying a living wage to their employees. My best guess is that it well might be so.
xenoturkey
(68 posts)Is that not the best prototypical business model if you have to be capitalist? I charge you up front for $50 and I give you great service and great prices and great products in return.
And I pay my people a living wage. Ive been to Costco's on a few places on the planet. Montreal and London for two. Ive never had a bad experience. Shouldn't this be the example for everyone?
Warpy
(111,383 posts)but you're not stingy like the Walton brats who think good workers are a dime a dozen and that's all they pay them.
I do often wonder if labor costs are really fixed: either you pay living wages up front or you pay through the nose for paperwork and training at the back end if you stiff people on wages, plus lose business because you get what you pay for and people on starvation wages are not motivated to do their best work.
xenoturkey
(68 posts)And just a second post... I loved it to death that they get paid so well. I had a buddy back in college that worked for them (Yes I attended a US College) and he never had a bad thing to say about...most anything Thats how you build a real business. Not profit driven but people driven...
rucky
(35,211 posts)http://www.rei.com/about-rei/business.html
REI started as a cooperative, or co-op, in 1938 and we've stayed true to that business structure ever since.
Being a consumer co-op, rather than a publicly-traded company, enables us to focus on the long-term interests of the co-op and our members. We answer to youour membersand run our business accordingly. And it means that we're able to operate a business that plays a vital national role in growing outdoor participation and protecting the environment for future generations.
Anyone may shop at REI, member or not. But co-op members pay $20 for a lifetime membership to join and receive a portion of the cooperative's profits each year based on a percentage of their eligible purchases, among many other member benefits.
Not sure how the wages stack up, but the business model is something that could be repeated in the retail sector.
Mopar151
(10,003 posts)They have serious issues with respect and treating others well - you could prove to them that they would make more money by paying well, and they would still rather kick "the help" around.
xenoturkey
(68 posts)Id like to see everyone get a living wage. I've been most place in the world and see tyrants and etc. impose their will. Its disturbing to see people so badly (Kept?) Sorry I was gonna say managed and it sounds equally bad. If you know the right english word I'm missing it right now.
Thank you.
catnhatnh
(8,976 posts)Good morning from the New Hampshire woods. I like the Costco model. For the past 6 years myself and a family member ran a snack bar at a small airport. Costco, though serving the general public, is even more geared up to serve a small business. Their distance from our spot meant we only went 4-5 times a year for large orders but even those few orders more than compensated the cost of membership. I believe the Costco represents "enlightened self-interest" and the Walmart model at best vulture capitalism. One of our Websites founders does some good graphics-if you haven't seen his most recent, here it is :
Anyhow please be our frequent guest and know that we do have both foreign nationals and many ex-pats on the board.
xenoturkey
(68 posts)I live in Concord for a long time. I spent a very (infrequent time at derryfield in manchester)
I think im either overly getting your point or not. My english as always is not the best. I can't tell if you are being sarcastic or not (I'm sorry, more my fault).
I think you meant costco is pretty good and I completely agree. Saw it first hand in college. They pay a living wage, treat everyone decently and beyond that hand out some great products I've been to a few in every country but now seeing it a kind of cross the board ive seen how happy everyone is who works there.
TexasTowelie
(112,520 posts)You made your point clearly and agree with your sentiments. When people are in a work environment which offers positive interaction and even some praise then they are motivated to provide their best efforts so that their employers are efficient, productive and profitable.
I have worked in three different jobs through my career. The first job was with state government and most of the time I did not feel significant although there were a few times when they realized my value to the organization. The most valuable thing I gained was knowledge of regulation and the opportunity to attend advanced computer training courses.
The second job was with an insurance company and I was considered the "golden child" solving major problems and providing services that made the company millions of dollars--it was the best of times! The company even paid for courses so that I obtained a professional certification.
Unfortunately the insurance company dissolved and I was transferred to an affiliated IT company. No training was ever provided by the company, the organization was poorly run, the annual performance appraisals were neglected and pay raises were rare. The company drastically underbid contracts with their clients which meant that the salaried workers had to volunteer their free time to fulfill the contract and very little appreciation was shown to the employees that made sacrifices for the benefit of the company. In turn, the employees became hostile which resulted in a poor work environment and the clients were usually dissatisfied with the services provided.
For most companies meeting the bottom line on a quarterly report has become more important than examining the long term scenario. Feel blessed if you work for an employer that treats you with dignity and respect since they have become rare commodities in this employment market.
A bit of a step in making my first OP. I've been lurking since 2003. I didn't know if my english was well enough to make an OP.
Thank you so much. And I agree with everything. I'm sorry about all of it. Wish I had better answers. Or any.
ReRe
(10,597 posts)You did just fine. And I agree with you. I think if businesses ran their companies like Costco, we wouldn't be in this depression. No jobs would have been shipped away because the employer and employees alike would have been doing just fine. Greed got the best of those businesses, and greed took the country down.
summer-hazz
(112 posts)I understood your OP very well.
I agree with you, higher wages will make for a more enjoyable environment and will
add to the business as well...
I boycott Wal-Mart for the reasons you mentioned..
Have fun here at DU!!!
femmocrat
(28,394 posts)summer-hazz
(112 posts)Tuesday Afternoon
(56,912 posts)quaker bill
(8,225 posts)Others it seems never will. I have been in several lines of work over the last 43 years. In each there were good employers who paid decent wages had low turnover and took advantage of poor employers by stealing their best trained staff with salary, benefits, and decent working conditions. Having taken a few really bad jobs in economic hard times, I can tell you that virtually all the staff at these jobs knew who the good employers were and constantly checked to see if they were posting an opening.
Having been both a worker and then a decent employer, I can tell you that if you offer decent pay and benefits, you will get hundreds of well qualified applicants for every opening even in a hot economy. Filling a position with someone perfect for it is only difficult because you have to pick one out of so many good candidates.
As a former business owner, I can say that the dollars you save going cheap on staff are quickly lost on poor service, mistakes, accidents, and declining good will. It is a losing proposition.
Ilsa
(61,707 posts)is just fine for posting here.
You are right about the cost of training new employees. I think, though, in many rural areas and smaller cities, WalMart drove the "mom & pop" stores out of business, even the locally owned franchises. So, employees have no place to go for another job unless they leave grocery business. In places like that, employment might not fluctuate as much at WalMart. I would bet that your theory applies very well to WalMarts in cities, though.
Laelth
(32,017 posts)I seriously doubt you're going to get much disagreement from us regarding the basic premise of your OP. Liberals believe in higher wages for workers, and we know, as did Henry Ford, that we're all richer when the working class has plenty of money to spend. Trickle down is complete bunk. Trickle up is how capitalism works. Living wages for all who work is a long-standing liberal goal.
-Laelth
I never thought my English would be good enough to get my point across..ive been lurking a long time and obviously very hesitant on making an OP because I know a few languages and it gets difficult English is definitely not the easiest!
Anyway, laila tov, love you all and hope for some good times here at DU!
femmocrat
(28,394 posts)I wish Costcos were as ubiquitous as Walmarts. We don't have one here so I don't really know how they compare as to merchandise, etc. Everyone seems to like them though!
90-percent
(6,829 posts)English is sure not my best language, either.
Unfortunately, in my case, it's the only language I know.
-90% Jimmy
longship
(40,416 posts)A good first thread, my friend.
You have a good point.
Downwinder
(12,869 posts)It is too long range. Can't make a quick buck.