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by mcaravey 1657 days ago
Oh, don't get me wrong, it's a viable business. The issue I am bringing up is the disconnect between white-collar workers and blue-collar workers.

Blue collar work is by definition manual labor. Low skill labor goes in, product comes out. You have to constantly provide labor in order to create value. Software is very different because once it has been written it continues to provide value without constant input (yes, I'm ignoring maintenance and such). In theory the software can provide exponential amounts of value compared to the cost of labor. In that case sure, increasing the wages won't have a meaningful impact on the company income.

With blue collar work, and our in particular, there is a direct correlation between the cost of the labor and the profit from the product. The kinds of people we might employ have 1) zero experience, 2) troubled past that wouldn't pass a background check, 3) little to no education (many never finished high school), or any other multitude of reasons. These are vastly different kinds of people than what you might find in a white collar job.

In a business based on blue collar work, you really only have two choices: increase sales prices in order to pay employees more and hope the market will bear it. If not, you can pay employees market rates and keep the doors open. We have plans to start offering health insurance and benefits to all our employees, in addition to raising wages, so there's that to consider...