07-03-2015, 08:55 PM
The cost of labor in my area is the highest in the country; that's the biggest price sting for me.
Unfortunately, I can't increase client pricing to cover the increases in labor costs over the last several years; many seniors are on fixed incomes and would be forced into assisted living facilities or nursing homes.
I pay a certain percentage over minimum wage in order to recruit and retain good employees. So, my profit margin keeps shrinking. I fully support paying employees livable wages and everything costs more here. But, the labor laws in my city really hurt some types of small service businesses like mine. Luckily, business is booming this year, so I'm still hanging in there and doing okay.
Currently, the California state minimum wage is $9.00. But, here in San Francisco, the minimum wage is now $12.25 per hour. It's increased twice in 2015 alone. We will have an increase of $1.00 each year moving forward, and by 2018 the San Francisco minimum wage will be $15 per hour. Plus, we have paid sick leave, no overtime exemptions...
Also, fresh fruits and vegetables are even more expensive here than usual these days (drought). I wanna support our farmers, so I don't even look at the price anymore when I buy broccoli, nectarines, and avocados.
But, I like living here and on the plus side, the property value (especially in my neighborhood) has increased a lot over the 10 years that I've owned my home. So, I'm hoping that when I sell my house and business I can relocate to a cheaper part of the country and be in good shape.
Unfortunately, I can't increase client pricing to cover the increases in labor costs over the last several years; many seniors are on fixed incomes and would be forced into assisted living facilities or nursing homes.
I pay a certain percentage over minimum wage in order to recruit and retain good employees. So, my profit margin keeps shrinking. I fully support paying employees livable wages and everything costs more here. But, the labor laws in my city really hurt some types of small service businesses like mine. Luckily, business is booming this year, so I'm still hanging in there and doing okay.
Currently, the California state minimum wage is $9.00. But, here in San Francisco, the minimum wage is now $12.25 per hour. It's increased twice in 2015 alone. We will have an increase of $1.00 each year moving forward, and by 2018 the San Francisco minimum wage will be $15 per hour. Plus, we have paid sick leave, no overtime exemptions...
Also, fresh fruits and vegetables are even more expensive here than usual these days (drought). I wanna support our farmers, so I don't even look at the price anymore when I buy broccoli, nectarines, and avocados.
But, I like living here and on the plus side, the property value (especially in my neighborhood) has increased a lot over the 10 years that I've owned my home. So, I'm hoping that when I sell my house and business I can relocate to a cheaper part of the country and be in good shape.