Howard Must Fucking Hate This Guy

Discussion in 'The Howard Stern Show' started by BethSucks, Apr 14, 2015.

  1. BethSucks

    BethSucks Well-Known Member Staff Member

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    Seattle boss raises entire company's minimum wage to $70,000
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    "As much as I'm a capitalist, there is nothing in the market that is making me do it," Dan Price told The New York Times (Gravity Payments)

    After hearing about a study that claimed income-- to a certain level-- directly affects one's emotional well-being, the founder of a Seattle-based credit card processing company announced Monday that he will take a large salary cut so he can increase the pay for each employee to at least $70,000 a year.

    The New York Times reported that Dan Price, the head of Gravity Payments, told his 120-person staff about the plan after talking to friends about the difficulties of making $40,000 a year.


    "As much as I'm a capitalist, there is nothing in the market that is making me do it," he told the paper.

    Price said he will cut his nearly $1 million salary to $70,000 and use about 80 percent of the business’ anticipated profit to increase the salary of about 70 employees. About 30 employees, including the lowest-paid clerk, will see their salaries increase to the $70,000 threshold.

    The workers reportedly clapped and cheered when he made the announcement at the Seattle office.

    "I’m completely blown away right now," Hayley Vogt, 24, who earned $45,000 a year at the company, told the paper. "Everyone is talking about this $15 minimum wage in Seattle and it's nice to work someplace where someone is actually doing something about it and not just talking about it."
     
  2. HorseFanNetwork

    HorseFanNetwork Well-Known Member

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    "Robin, who goes to work to get paid in money? i dont believe in that, i pay in plugs, that is priceless. beth is such a saint. "
     
  3. Rob0729

    Rob0729 Well-Known Member

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    Any way we can scrub this story from the web before my employees see it? I pay them well, but they all still think they are under paid. Granted I didn't make $1 million a year like this guy and I certainly don't make as much as Howard.

    But if I was a rich guy like Howard, I would certainly pay it forward to my staff. Seriously, what is he going to do with all that money?
     
  4. Rescued Owl

    Rescued Owl VIP Extreme Gold

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    Robin I heard things about this guy. All I'm saying is that he shouldn't be allowed around kids.
     
    reno, HorseFanNetwork, Slow and 3 others like this.
  5. Calloused Shins

    Calloused Shins Well-Known Member

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    Good for him. The publicity itself will make up the difference.
     
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  6. SomerSky

    SomerSky Obsessed with what I hate Banned User

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    And the infighting begins.....
    "Why the fuck is this shitbag clerk making the same amount as MEEEEEE!!!!"
     
  7. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...yup and the owner will see the income increase as the company grows while the happy employees are capped at 70k.
     
  8. Mike Huntslooce

    Mike Huntslooce Maker of Champions Gold

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    Excellent!
     
  9. Calloused Shins

    Calloused Shins Well-Known Member

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    No... Everybody will at least make 70, not only 70...

     
  10. Calloused Shins

    Calloused Shins Well-Known Member

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    No cap. The lowest rung will make 70...

     
  11. AllAboutHim Ed

    AllAboutHim Ed #mypurpose VIP

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    Im sure his sales guys are going to be very committed to hitting their goals. I'll bet a gold membership the policy or company is gone in two years.
     
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  12. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    1. His is not a labor intensive business.

    2. 75% of his staff already make more than that. Raising the others from, say, $50,000 on average, to $70,000 costs him $600,000 a year.

    3. Much of the cost of hiring a lower paid worker isn't their wages, but benefits. Healthcare, disability, paid vacation, holidays, sick days, 401K matching, etc might be $10K a year for a $40K worker. If he can hire fewer people who work better than the usual slack asses he makes up most of it there.

    3. He knows its a good PR move to pay the receptionist and a few low end clerks more than the market price.

    4. Over thousands or millions of processed transactions, the cost difference is probably negligible. This is why people who work in fields where their labor is responsible for big buck transactions make more than the guy making your $5 foot long sandwich. In capital leasing the dumbest clerk at the company makes $50K. Anyone who can think makes $100K, and low level managers make $150K. Top sales people make over $500K. Because that person might be working on number crunching for a $20M deal. The cost of their labor isn't a factor there like it is with digging ditches or cleaning rooms.

    5. This is why when labor gets expensive in businesses that require a lot of it, they first try to find substitutes. Either immigrants or technology.

    Still, some of the worst offenders are high tech assholes like Apple and Microsoft who know labor isn't a big part of their intellectual costs but still put the screws to American workers anyway by hiring $30,000 programmers overseas, claiming there isn't anyone here to do it. So the boss can be a big shot and get a humanitarian award with the money he saved. Medical services that bill you $500 for a test may pay a tech in Bombay $3/hour to actually perform the testing. Radiological firms that bill your insurance company $1,000 for a scan may digitally send it to India to be read by a $20,000/year radiologist, and all you get is your doc reading the summary someone you never met wrote up.

    5. He'll take $70,000 for a year, then raise it back up, hoping to make it up in increased productivity and sales. It's an extreme example maybe, but it's what any smart business person would do. Pay more to get better workers and higher productivity.
     
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  13. Thikken Vaney

    Thikken Vaney What's everyone looking at?

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    Really?

    Better read what the company is before you commit to that.. unless you want to give away a gold membership.

    I bet they grow exponentially. Not necessarily because of this, although it may help.

    http://gravitypayments.com/services/
     
  14. AllAboutHim Ed

    AllAboutHim Ed #mypurpose VIP

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    You're probably right in this case, but I don't think it will have anything to do with the policy.