[xyzelement]

This is such a childish mindset. How much did you pay your plumber to fix your toilet last time? Why didn't you pay 40% more than that?

[Teever]

When you pay someone to do sensitive work like plumbing or electrical work in your house do you go for the cheapest guy? Why or why not?

[jeffalyanak]

If your plumber was doing regular work for you that brought you significant, expensive-to-replace value then you _should_ pay him more.

[SR2Z]

How is it childish? Not all plumbers cost the same or do the same work. If you wanna hire a good plumber, you'll have to pay them more.

Likewise, if people on your team get better at their jobs and you don't want them to leave, you also have to pay them more.

[xyzelement]

Correct but not the point. The reason you pay your plumber 1x and not 2x is because someone else can do the same job equally well for you for 1x.

You don't pay 2x untill you are forced to (eg plumber is the only game on town) not because you are so enlightened.

[SR2Z]

I don't sit down and decide "here's how much I'm going to pay the plumber." I call a plumber and get a quote. I can keep going until it feels worth it.

My enlightenment comes from talking to a bunch of plumbers and hearing what they're gonna charge. That's the market rate.

If I hire an employee and they get good at their job and someone else offers them a 40% raise, they'll probably leave. That's a lot of money.

Some companies care about retention, most don't really.

[carlosjobim]

You're making the wrong comparison. If your plumber increases his rate by 40%, will you "fire" him and get another plumber which will also be 40% more expensive, or a plumber which costs the old price but isn't good, or accept his price increase?

[mplanchard]

Do y’all not tip your plumbers?

[miyoji]

I did, because private equity took over the plumbing company and raised the prices.

[lateforwork]

Because there is no intellectual property in the toilet?