Passing the Cost to the Consumer from a Business Owner's Perspective

originally posted by: BuzzyWigs
Because there are people who need charity. 501c3 organizations (non-profit, for those unfamiliar with US terminology) do what they do to help other people who need help...and they love being helpers.

But a 501:C:3 is not a business and is not allowed, by tax code, to generate a profit for its shareholders.

There will ALWAYS be people who need help. And fewer and fewer want to contribute to helping them.
I see it as a societal necessity.

I agree. That is why I joined the Masons. My accountant was a Mason and I listened to him tell me about all the things he did in the community so I asked to join as well.

Now I get to put my talents in the kitchen to use at the local soup pantry.

originally posted by: olaru12
I really never opened a business motivated strictly by profit.

That is not the point I was making. Whether you made a profit or not the cost of doing business is borne by the consumer.

a reply to: AugustusMasonicus

But a 501:C:3 is not a business and is not allowed, by tax code, to generate a profit for its shareholders.

And I happen to agree with that.
The CONSUMERS (clients) get the benefits of the work.
Shareholders? I think they are coddled and paid for doing next to nothing but gambling. Do I support that? Not so much. I've just seen too many people struggling while 'shareholders' rake it in.
It isn't fair, moral, or right. In my opinion.

I applaud olaru12 for selling out to HIS EMPLOYEES. Credit unions make sense to me. "Nationwide Insurance", for example - owned by the customers/clients, NOT shareholders.

This is why I refuse to work for a corporate conglomerate. A mom/pop shop? Yes, I'll work for you. But contributing to Wall Street - even though it's the name of the game now - just makes my guts upset.

Those days never existed. The real world is not some hippie commune or Smurf village where everyone is in it for the other guy. You get into business because you have the chance to make money while doing what you like.

Not entirely true....

There are plenty of business run as a cooperative. I'm a partner in one on a very small scale and it works extremely well for everyone involved.


www.business.vic.gov.au...

a reply to: AugustusMasonicus

Really? What fantasy planet is that? The enjoyment and money are the driving factors. I do not know of any business owner who wants to work long hours for little reward. - See more at: www.abovetopsecret.com...

Provide a great service and your reward won't be so little....

ETA: And is the money the only "reward"??
I see that as a problem, if the owner is only in it for the $$

How do you operate a business with ever-increasing costs without passing them on? - See more at: www.abovetopsecret.com...

By planning for the ever increasing costs... in other ways then pass the cost off to the consumer that is facing the same ever increasing cost. From you now.... Ever heard of the 6 P's
You right, I am naive in the make money for me, screw every one else mentality that this country has adopted over the past 50 or so years.
I hope I stay that way.

originally posted by: BuzzyWigs
"Nationwide Insurance", for example - owned by the customers/clients, NOT shareholders.

This is why I refuse to work for a corporate conglomerate. A mom/pop shop? Yes, I'll work for you. But contributing to Wall Street - even though it's the name of the game now - just makes my guts upset.

No matter where you work, if the are a legal business entity, there are shareholders. I was a shareholder.

originally posted by: Sremmos80
Provide a great service and your reward won't be so little....

I did and my reward was good.

ETA: And is the money the only "reward"??
I see that as a problem, if the owner is only in it for the $$

I thought I made it clear that I said I enjoyed what I did as well as wanting to make money from it.

By planning for the ever increasing costs... in other ways then pass the cost off to the consumer that is facing the same ever increasing cost.

Explain these ways of preparing in detail.

originally posted by: olaru12
There are plenty of business run as a cooperative. I'm a partner in one on a very small scale and it works extremely well for everyone...

Again, the costs are still passed to the end user regardless of the business model.

They do not operate in a vacuum where costs stay static.

a reply to: AugustusMasonicus

No matter where you work, if the are a legal business entity, there are shareholders. I was a shareholder.

also not entirely true.

Ever heard of an LLC.

premium.docstoc.com... h_Up_And_Coming&utm_content=40024482265&gclid=CMu-mrnLpL4CFcpcMgodBUEAMA

No shares, no stocks.

originally posted by: BuzzyWigs
Thank you for this insider's pov.
It does help.
I can appreciate the dilemma, and the responsibilities that come with owning and operating business(es). The only sticking point is that as a consumer (not a businessperson), the cost of taxes, insurance, utilities, fuel, food, transportation, etc. go up for us, too...
but we can't just 'raise our prices' by insisting on a raise to make up for it.

You are a reasonable person, and you worked hard, and put a lot of effort into your success. Not all of us want to take on that level of responsibility/risk - nor can all of us afford to.

I'm all for cottage industry - and have earned a few $$$$ myself working as a bespoke seamstress. So, what are we to do when the market dries up, our wages/salaries stay stagnant, yet the prices soar??

This is when you start complaining about the tax rates and policies that lead to the soaring prices. Understand that sometimes, it seems like a policy sounds like a good thing, but is the extra burden of higher prices paid by everybody really worth it?

This is what the talking heads mean when you see one of them talking about how this or that new business or utility tax or regulation will disproportionately burden the poor.

Think about Obama's new energy regulations for example. They will make energy costs go up extremely high in many places because power companies are going to lose their power plants or the costs of operating them will becomes excessively high. Those costs will be passed on to those of us who pay the bills - you and me. Can you afford higher energy bills? Can the people poorer than you and me? And when businesses start having to raise costs to compensate for their higher energy bills, can you and I and the poor not only pay our much higher energy bills but afford to carry the higher prices of everything else, too?

Nothing, nothing, that imposes extra costs on the economy happens in a vacuum. It all trickles through to you and me and everyone else and our pocket books.

Why do you think so many of us don't like new taxes or regulations? We know it really means more money out of our pockets.

a reply to: AugustusMasonicus

No matter where you work, if they are a legal business entity, there are shareholders. I was a shareholder.

Well, like I said, I get your point.

I also understand the rewards of doing things for others or with others, to the benefit of all involved, and not just CEOs and shareholders.

I suppose I'm just 'flaky'....so - send me to a hippie commune, take away my birthday and stamp "NO DESSERT" on my forehead. I'll still try to help people out, without expecting anything except to be able to survive...

and maybe some day one of the people I helped will come to me when I'm in my rocking chair and say, "You helped me so much. You changed my life, and tweaked my trajectory just enough that I was able to get out the cycle of despair I was in. I just want to let you know."

At the end of my life, that will be enough. But, in the meantime, I still need to get by.

originally posted by: Sremmos80
a reply to: AugustusMasonicus

Really? What fantasy planet is that? The enjoyment and money are the driving factors. I do not know of any business owner who wants to work long hours for little reward. - See more at: www.abovetopsecret.com...

Provide a great service and your reward won't be so little....

ETA: And is the money the only "reward"??
I see that as a problem, if the owner is only in it for the $$

How do you operate a business with ever-increasing costs without passing them on? - See more at: www.abovetopsecret.com...

By planning for the ever increasing costs... in other ways then pass the cost off to the consumer that is facing the same ever increasing cost. From you now.... Ever heard of the 6 P's
You right, I am naive in the make money for me, screw every one else mentality that this country has adopted over the past 50 or so years.
I hope I stay that way.

Every hear of competition?

You can only plan for increasing prices so much before you have competition who can and will undercut you and put you out of business. That is what capitalism does. If you plan for rising prices and costs by charging a lot to give yourself a cushion ... the guy who comes through and grabs your market share by charging less beats you.

a reply to: ketsuko

Why do you think so many of us don't like new taxes or regulations? We know it really means more money out of our pockets.

But you're just fine with paying taxes to subsidize McDonalds' and Walmart's low wages policies? Their pay-scales that don't equal the cost of living?
I'm not.

a reply to: BuzzyWigs

Shareholders? I think they are coddled and paid for doing next to nothing but gambling.

Most of the gambling risk come from the government and government caused monopolies. (all monopolies are caused by laws) No one knows what the government may do over the course of a few election cycles.

Regime Uncertainty

a reply to: ketsuko

Sounds like a personal problem to me.
A loyal costumer base can offset some one coming in and under cutting prices..
Or provide the better service and it won't matter.

Now if we want to get into what a store like wal mart does, well that is a different thread IMO.

a reply to: Sremmos80

The consumer is the ONLY ONE that can keep the doors open. A business exists only if consumers give them enough money to offset costs.

while you rack in the profit

Profit pays for raises, equipment repairs, increased capital costs, etc. Expend an erg of energy learning about how a business operates before you whine about profits.

/TOA

originally posted by: AugustusMasonicus

 

I did not go into business to become a charity. I went into business to make money.

You are one of those evil for profit people......... Those are the worst types.... all you do is create jobs and pay taxes.

Sadly the other side thinks you should be a non profit and give to the collective the fruits of all your efforts.

This should be an interesting thread.....

a reply to: The Old American

Yes the costumer keeps the doors open, not you living in a fancy house with 5 cars.
The costumer does not need to lining your pockets, and taking on the cost's and taxes that come with owning a business..

a reply to: olaru12

That is a semantical argument, limited liability has members instead of shareholders, the result is the same.

Chrysler is a LLC, who is the majority member owner?

Coporate profits are their highest in history. Corporate taxes are at their lowest in modern history. During the golden age small buisness the 40 and 50s Coporate taxes were more than double what they are now. Has any of this massive reduction corporate taxes meant a reduction of costs for consumers? Nope. All it has meant is more profits for companies.