08-04-2015, 05:58 AM
(08-04-2015, 12:21 AM)SteelCrysis Wrote: He's still making substantially more than his employees. That isn't going to change as the wages scale up.
Yes, it is.
The owner's profit is what is left after the employees/other expenses are paid. The owner can only make less as the employees make more, unless he raises prices or cuts some other expense.
My example was legit- what owners make from an owner. I've known four sandwich shop owners in my life. These guys aren't getting rich- they're guys working full time plus at the sub shop so they can make a decent living for their families.
Why would anyone pay $100-$250K up front and risk it, work more than full time making subs, managing low end employees, doing the books, etc for $45K a year?
$45K a year is the average wage after taxes in this country. (and those jobs don't have a quarter mil upfront fee)
So while $45K is indeed more than $30K, I doubt anyone is going to invest $150K and slave in a sub shop to get it. They would be better off ivesting the $150K and getting a job. Can just walk away from a job if you don't like it.