Originally Posted by
repechage
Pricing component in that demand curve?
Having talked to a local bike shop owner very recently, finding a new mechanic is hard, Wary of paying big and then if demand collapses, letting them go and if prices are raised to balance the demand/supply curves, now having ticked off customers who think you are now only thinking "big Bucks"
In California there are workmans comp covid claims...not going to win there.
WC insurance Rates are rising. what was once 10% is now 16%, add in state unemployment insurance, Cal SDI, mandated OSHA training... sexual harassment training... (employees get paid for while taking that)
Any new hire is a potential whistleblower risk. (small shops are notorious for ignoring break rules, lunch rules, none of the shops I worked for did it by the book, a new hire can upset the status quo)
I see a sole proprietor business to be the way to mitigate that but of course limits total revenue.
There is a big evolution brewing. May indeed make things better for employees eventually.
Wondering what your reply has to do why my comment. Got more customers than you can service? Maybe raise your prices, that's all I'm saying. You're commenting on the cost side of things, and that's a separate issue, which, btw, raising your prices can help out with.
Thinking of another way, there is the concept of surge pricing. Many of the freeways of the Bay Area (where American Cyclery is located) do this. If I had an LBS and my costs were fairly constant (have to keep my mechanics employed), I'd consider adding a high season surcharge. Hotels do this all the time - high season pricing. One could spin it the other way - higher base prices, but a "low season" discount.
I often ask engineers where I work what our mission statement is. The right answer (IMO) is that we're here to make money. Those that argue with me, I just tell them I'll reduce their salary if it's not important to them. No one's taken me up on that one.