Death by DeSantis

ATeam

Senior Member
Retired Expediter
U.S. citizens will do those jobs for a higher salary. Double it to around $26. Businesses will just have to raise the price of berries.
Over-simplistic answer. Everything works in theory. If it was that easy, labor prices would be already raised to that fantasy level and the jobs would be instantly filled.

One of my employees works part time as a self-employed, part-time house cleaner. She charges $50-$80 per hour, depending on the client and type of work. I can't pay anywhere near that amount because our personal training clients will not pay high enough fees to cover that kind of labor cost and the gym overhead and profit too. So here you have a woman who works with our company at substantially lower wages than she can make as a full-time house cleaner. Why does she do that? Why does she intentionally work with our company at significantly lower pay than she could make working for herself at significantly higher pay?

Everyone on our staff knows she does this work and makes this money. But, except for her, NONE of them are willing to change jobs to make that good money themselves. Why are they unwilling to make that change? They certainly have the ability to do the work. They have the sales skills to get the good gigs. But they don't move toward the bigger money. Why is that?

Explain it, please. If it was as easy as you say it is to attract people into other jobs with more money, why, in the real world, are my employees not rushing into lucrative house-cleaning careers?

Hint: The assumption that US Citizens will do those jobs at a higher salary is incorrect. As I said above, there is more to the employment equation than workers and wages. As an employer who competes for workers every day, I know this to be true.
 
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Ragman

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U.S. citizens will do those jobs for a higher salary. Double it to around $26. Businesses will just have to raise the price of berries.
Doubling the price like that would be extremely inflationary.
I can hear the howling from MAGA blaming the Dems. Smh
 
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muttly

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Doubling the price like that would be extremely inflationary.
I can hear the howling from MAGA blaming the Dems. Smh
That hasn’t stopped the Biden regime to implement their green policies, which have increased energy prices. I don’t see the Left howling that this needs to be stopped. Higher gas prices is just the new normal, right? People will just have to adjust, according to them.
But raising the prices on berries to offset higher labor costs for U.S. citizens? No no no. We can’t have that. That’s a bridge too far. Riiiight.
 
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Ragman

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That hasn’t stopped the Biden regime to implement their green policies, which have increased energy prices. I don’t see the Left howling that this needs to be stopped. Higher gas prices is just the new normal, right? People will just have to adjust, according to them.
But raising the prices on berries to offset higher labor costs for U.S. citizens? No no no. We can’t have that. That’s a bridge too far. Riiiight.
IOW, your proposal to double costs was a troll, got it.
 

Pilgrim

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Retired Expediter
Not to worry - Biden has a plan; it's been the plan since he was elected.

“I’ve also directed my team to make a historic increase in the number of refugees admitted from Latin America..."

"The Biden administration did a classic Friday dump of damaging statistics, this time involving record numbers of illegal alien encounters in a month set last August: 304,162."

 
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muttly

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Over-simplistic answer. Everything works in theory. If it was that easy, labor prices would be already raised to that fantasy level and the jobs would be instantly filled.

One of my employees works part time as a self-employed, part-time house cleaner. She charges $50-$80 per hour, depending on the client and type of work. I can't pay anywhere near that amount because our personal training clients will not pay high enough fees to cover that kind of labor cost and the gym overhead and profit too. So here you have a woman who works with our company at substantially lower wages than she can make as a full-time house cleaner. Why does she do that? Why does she intentionally work with our company at significantly lower pay than she could make working for herself at significantly higher pay?

Everyone on our staff knows she does this work and makes this money. But, except for her, NONE of them are willing to change jobs to make that good money themselves. Why are they unwilling to make that change? They certainly have the ability to do the work. They have the sales skills to get the good gigs. But they don't move toward the bigger money. Why is that?

Explain it, please. If it was as easy as you say it is to attract people into other jobs with more money, why, in the real world, are my employees not rushing into lucrative house-cleaning careers?

Hint: The assumption that US Citizens will do those jobs at a higher salary is incorrect. As I said above, there is more to the employment equation than workers and wages. As an employer who competes for workers every day, I know this to be true.
I recall that you said previously( i may have this wrong) that you pay your personal trainers a better rate. That may account for this. They may feel they are making enough money or have other family obligations that prevent themselves from doing side jobs. Or maybe they don’t currently want to change careers because it isn’t necessary.
People have different motivations. Recent school graduates may look at cleaning houses as a lucrative endeavor. The same as picking berries at 25 or 30 bucks an hour.
 
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muttly

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Not to worry - Biden has a plan; it's been the plan since he was elected.

“I’ve also directed my team to make a historic increase in the number of refugees admitted from Latin America..."

"The Biden administration did a classic Friday dump of damaging statistics, this time involving record numbers of illegal alien encounters in a month set last August: 304,162."

Yes, good catch. I forgot to post that.
 

ATeam

Senior Member
Retired Expediter
Doubling the price like that would be extremely inflationary.
I can hear the howling from MAGA blaming the Dems. Smh
Additionally, people would stop buying berries. Farmers would be left to let their crops die on the vine and/or to sell at steep losses and eventually go out of business. You can't raise prices at will without consequences. Price does not exist in a vacuum.
 
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muttly

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Additionally, people would stop buying berries. Farmers would be left to let their crops die on the vine and/or to sell at steep losses and eventually go out of business. You can't raise prices at will without consequences. Price does not exist in a vacuum.
People will still buy berries. Just like they will still buy more expensive milk. Just like they will still buy more expensive eggs, etc.
 
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ATeam

Senior Member
Retired Expediter
I recall that you said previously( i may have this wrong) that you pay your personal trainers a better rate. That may account for this. They may feel they are making enough money or have other family obligations that prevent themselves from doing side jobs. Or maybe they don’t currently want to change careers because it isn’t necessary.
People have different motivations. Recent school graduates may look at cleaning houses as a lucrative endeavor. The same as picking berries at 25 or 30 bucks an hour.
What I said, and what I do, is pay our trainers more money to work at our gym than they can make at any other gym in town. I do not pay them the self-employed housecleaning rate of $50-$80 an hour. I pay them about 10% more than they could make if they worked at a competing gym. It is my goal to be the highest-paying gym in town; not by a lot, like double or triple the going rate, but by enough to be able to truthfully tell all job applicants and current employees that the money is better here than anywhere else in town.

You're statement that "people have different motivations" is exactly right, and it is the explanation. It explains why a personal trainer is willing to work as a personal trainer at lower pay than they could make as a house cleaner. It explains why farmers, construction companies, the hospitality industry and others struggle to replace the migrant workers DeSantis has driven out of the state with his draconian laws.

Maybe in theory, you could find workers to pick berries at $25-$30 an hour. But that would drive the price of berries so high that people would stop buying them, so there would be no need for workers at all.
 
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muttly

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What I said, and what I do, is pay our trainers more money to work at our gym than they can make at any other gym in town. I do not pay them the housecleaning rate of $50-$80 an hour. I pay them about 10% more than they could make if they worked at a competing gym. It is my goal to be the highest-paying gym in town; not by a lot, like double or triple the going rate, but by enough to be able to truthfully tell all job applicants and current employees that the money is better here than anywhere else in town.

You're statement that "people have different motivations" is exactly right, and it is the explanation. It explains why a personal trainer is willing to work as a personal trainer at lower pay than they could make as a house cleaner. It explains why farmers, construction companies, the hospitality industry and others struggle to replace the migrant workers DeSantis has driven out of the state with his draconian laws.

Maybe in theory, you could find workers to pick berries at $25-$30 an hour. But that would drive the price of berries so high that people would stop buying them, so there would be no need for workers at all.
A much higher wage would motivate people to that job. I’ve seen it over the years. With a job that doesn’t pay much, there is constant turnover. With jobs that pay an excellent wage there are coworkers of mine that have worked the same job for 38 years.
People won’t stop buying berries, bananas, or other fruit. Berry prices fluctuate from what I notice because I buy them often. Sometimes the price is higher. I still buy them regardless because I want and need them.
 
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ATeam

Senior Member
Retired Expediter
People won’t stop buying berries, bananas, or other fruit. Berry prices fluctuate from what I notice because I buy them often. Sometimes the price is higher. I still buy them regardless because I want and need them.
Would you pay double the price for berries? Triple? And if so, what would you stop buying to do that?

It is simply not true that people will buy berries regardless of price. If it was, berries would be ten times the price you pay today. Berry producers and distributors constantly struggle to keep prices low, but also at profitable levels. Now that labor has become scarce, they are looking to automate their processes so they can remain profitable. Doubling or tripling wages is not a viable solution. If it was, you'd see it happening right now, right before our eyes.

Keep your eye on this. We're not through a growing cycle yet since the DeSantis laws went into effect. I believe a number of FL legislators will act next year to undo the policy damage they did this year; and DeSantis will be left holding the bag of blame.
 
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muttly

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My wife and I made more money as expediters than we made in any other career. In the decade we were on the road, the truck driver turnover rate, even among expediters was 100% per year.

Would you pay double the price for berries? Triple? And if so, what would you stop buying to do that?
What's the turnover rate in a regular gym for workers that aren't personal trainers? The gym I used to go to had a new person per week at least. Likely they found a higher paying job and left.
 
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ATeam

Senior Member
Retired Expediter
What's the turnover rate in a regular gym for workers that aren't personal trainers? The gym I used to go to had a new person per week at least. Likely they found a higher paying job and left.
First, note that while our facility looks like a gym, we are a training center.

A lot of gyms hire minimum wage workers to staff their front desk. They pay them little and train them less. Turnover in that position is very high. Our gym does not have a front desk. When a member or prospect walks in, they are greeted by the owners, a trainer, our full-time training department director, or our full-time gym manager.

Our training department manager has been with us one year. She replaced a man who held that job for five years and left to move closer to family in another state. Our gym manager has been with us 3 months. She replaced a manager who left us after a year to pursue a career in another field. On average, we replace a manager once every 3.6 years.

The turnover rate among trainers is more difficult to calculate because there are more of them and most of those are part-time. We recently terminated one after three years because of a policy violation. We had one who was a student in medical school for a year. He left to move to another state to become a doctor. Another one who recently left us was with us five years. She left to become a stay-at-home mom when she had her second child. Yet another was with us a couple years and left to move into another career field.

I think it is fair to say our turnover rate is significantly lower than what you see in most other gyms.
 
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muttly

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Would you pay double the price for berries? Triple? And if so, what would you stop buying to do that?

It is simply not true that people will buy berries regardless of price. If it was, berries would be ten times the price you pay today. Berry producers and distributors constantly struggle to keep prices low, but also at profitable levels. Now that labor has become scarce, they are looking to automate their processes so they can remain profitable. Doubling or tripling wages is not a viable solution. If it was, you'd see it happening right now, right before our eyes.

Keep your eye on this. We're not through a growing cycle yet since the DeSantis laws went into effect. I believe a number of FL legislators will act next year to undo the policy damage they did this year; and DeSantis will be left holding the bag of blame.
Yes, I would pay much more for berries.
 
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