- cross-posted to:
- unions@lemmy.ml
- iwwunion@lemmy.ml
- cross-posted to:
- unions@lemmy.ml
- iwwunion@lemmy.ml
My crime business can’t work if I don’t commit crimes!
Then, it is every capitalist business with hired employees other than the owner of the capital. After all, the very essence, the source of profit is the exploitation of labor above and beyond the wages paid. Without that, no one will start such a business. Read Marx’s Capital, comrades, before it is banned.
I’d like to offer an opposing view but solely because I want to learn, if that’s okay?
I’ve owned businesses. I tried to do away with tipping and raise wages a commensurate amount, and then increase prices a commensurate amount to cover.
Keep in mind I made no money from this business, ever, in fact one could argue I lost well into the six figures on keeping it afloat for the employees and customers…but that isn’t the point. That part is fine by me.
The point is this, the customers were fucking dumb. They’d pay $5-$6 per beer and tip $1-$2 each drink, sometimes $3+.
But they felt paying $7-$9 per beer was too expensive and during the brief time we tried it even with tipping disabled at the register sales tanked 30-40%.
Which eventually led to less money coming in to the business and more money needing to be injected to pay the servers the same amount they were getting before.
I am all for abolishing tipping. I’m all for paying living wages and benefits and everything. I am willing to lose money to defend that. But I think the wild card is stupid fucking people who feel better about paying $5 and tipping $2, versus paying $7 and tipping nothing.
I don’t know how to overcome that.
I’ve since left that industry because it’s insanity - but I’m open to feedback and to learn.
https://freakonomics.com/podcast/why-does-tipping-still-exist-update/
They’ve been covering it a while, I think that’s the most recent version.
You’ve basically got it- consumers are stupid. Even though tipping doesn’t correlate to better service, people want to perceive that non-existant power to guarantee non-existent quality.Whoa, fascinating, thank you! I never actually thought about the power dynamic…it kind of makes sense especially for what I see at bars sometimes where some douche thinks tipping extra might get him the bartender’s phone number or something.
I’m sure there are other examples, but these are the ones that stick out in my mind. Seems like it basically amounts to people like the idea of getting a deal, even if it’s exactly the same.
“People are dumb, panicky dangerous animals and you know it.” Kay, Men In Black
Everyone keeps bringing up the JC Penny thing as an example of how people are dumb, except it’s actually just a demonstration of people being logical and the logical choice being unprofitable.
If you know prices are going to stay the same no matter what, then you buy things only as you need them. If they get discounted at times and have an extra large markup the rest of the time, then you would have to make a prediction on whether you’ll need it in the future. Since we can’t predict the future, you inevitably get this wrong and end up with more than you need or missing the stuff you need. Whichever way, you’ll be spending more in these kinds of stores either through buying stuff you never end up needing or being forced to buy things with a huge markup. JC Penny gave us the option to make a good choice. Everyone made that choice, but the good choice doesn’t produce profit.
You forgot Steam Sales (although I don’t think we have numbers on those, they really have been boring ever since they stopped the time limited offers).
Also, different point, but I think the entire Free To Play industry could be held as an example of the same mental processes that are at play.
Agreed. It’s all just variations on taking advantage of our dopamine receptors.
We’re talking about very different categories. Your post is about consumer behavior and increasing exploitation of employees by underpaying even a living wage. I’m talking about the capitalist system itself -
c + v + m
, wherem
is surplus value. That’s what a capitalist gets after they invests (and returns) their capital over and above the costs. Workers, on the other hand, do not receive a fair wage (in which case the net profit would be distributed equally among productive workers, adjusted by the difficulty of reproducing labor), but only the portion necessary for them to return to the labor market again and again. I will insist once again on the need to study Capital, at least its first volume. For a better understanding, of course, you should read a textbook on dialectical materialism, but it is not absolutely necessary.
Capital is very important, but it’s also a massive undertaking, it literally takes years to finish if one engages with it properly, taking notes. I’m still getting through it myself slowly myself and it did debunk a ton of “leftist assumptions” I had.
Though when it comes to wages, how they work and how they are exploitative, instead of Capital I’d recommend Wage Labour and Capital. It’s only around 1 hour read, and gets to this exact point much sooner as a result.