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Log In / Register | May 22, 2018

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Increased expenses

As a business owner there are only three options to deal with increased expenses, whether they are forced on you or not.

1. Increase prices: A dubious strategy vis-a-vis the competition

2. Lower other expenses: the biggest expense for most small businesses is labor

3: Take it out of the owner's pocket: difficult to do if said owner is not making any money.

Cuts in service, substituting automation for human labor, reducing hours, reducing benefits...these are the things you will see most in reponse to increased labor costs.

Les Stewart's picture

Business models based on degrading workers unacceptable by many

Welcome to the "new normal" for industries that rely on poverty wages for their survival . At least in Canada.

From The Tragically Hip's 2009 album (We Are All the Same), Morning Moon

I'm not making strain
Said, "Someone's paying
When something's too cheap
Somebody's paying something"

Franchisees that think their boat should rise while depriving their staff of a improved conditions, are as deluded as their shadow "enemies": franchisors. 


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