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Sell More Stuff The Minimum Wage Is Increasing Will That Impact Your Business?

Were you planning to increase the wages paid to your team in 2020? If you're going to do that, how much of an increase will that be? Do you have team members whose jobs are covered by minimum wage regulations (even if you are paying them more than the minimum)? There is another aspect to decisions to increasing hourly wages. Is the minimum wage going up where you live and work? An article posted at cspdailynews.com was headlined - - “ 52 Minimum Wage Increases on Tap for 2020 .” The number “52” refers t...

January 19, 2020 | Paul Schlossberg

Were you planning to increase the wages paid to your team in 2020? If you're going to do that, how much of an increase will that be? Do you have team members whose jobs are covered by minimum wage regulations (even if you are paying them more than the minimum)?

There is another aspect to decisions to increasing hourly wages. Is the minimum wage going up where you live and work? An article posted at cspdailynews.com was headlined - - "52 Minimum Wage Increases on Tap for 2020." The number "52" refers to the number of increases in 2020 at the state level or in specific cities or counties.

You should already be well-aware if there will be new minimum wage requirements where your company operates. In case you're not up to date, it would be a good idea to review the detailed listing in the posting at cspdailynews.com.  

The 2020 Federal Minimum Wage is $7.25 per hour. As of July 1, 2019 there were 29 states with minimum wages above that federal level. There were 16 states where the minimum wage was the same as the federal (at $7.25). There is no legislated minimum wage in five states.

Some of the increases are "small" -- at 14¢ or 30¢ per hour. Others are more substantial hourly escalations. You'll find wages rising by $1.50 and others at $1.75, $2.74 and $3.00 per hour. The details should be understood against a range of tiered rules based on the number of employees and/or where a company operates. For example, in New York State, the hourly rate increases from $11.10 to $11.80. But quick-service employees in New York State are paid at a higher hourly wage; it will increase from $12.75 to $13.75.

There have been anecdotal news reports where business managers comment that they must offer hourly pay above local minimum wage levels to attract and retain qualified employees. With unemployment rates at historically low points, you must be certain that you're paying competitively attractive wages. Odds are that to reach competitive wages, what you must pay will be above the legal minimum wage in your state, county or city.

Product costs are typically our largest cost element. Typically, next on the list are labor and operating costs representing a significant share of your operating expenses. Be certain that you have planned thoroughly for labor rates in your daily operations.

What specific productivity investments should you be making in 2020? On April 15, 2019, we posted "Why Do You Need To Use Remote Monitoring And Pre-Kitting?" There were a number of tools (hardware, software and systems) which might help you operate your business "better." By "better" we're talking about investing in and focusing your time and attention to operating effectively (doing the "right" things) and efficiently (do things the "right" way).

If you want to sell more stuff in 2020, don't overlook making investments and changes to drive productivity in everything you company does.

PAUL SCHLOSSBERG

Paul Schlossberg is president of D/FW Consulting, working with clients to merchandise and market products in impulse-intense selling environments, such as vending, onsite foodservice and convenience stores. Based in the Austin, TX, area, he can be reached by emailing to Paul@DFWConsulting.net, calling him at (972) 877-2972. The company is online at www.DFWConsulting.net