Post #1904394

Payroll is only the fraction of the price for any product or service. If you raise your payroll, it only raise the price for your product or service by the percentage of the payroll cost for your product or service. So yes, things will cost more, but the employees pay will raise more than the price of the product or service, giving more buying power to the employees. This is a really dumbed down explanation. There are other factors to consider when pricing something. But considering that payroll is only a portion of the price equation, any increase in dollar per hour is beneficial to the employees and will outpace the increased cost of the product or service.