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Walmart Enjoying 6.2 billion in subsidies

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eskimospy said:
Actually the complaint is that profits are unequally shared, not that profits exist at all.

So the average hourly wage of a Walmart worker is about $12. According to Bloomberg the average wage of a Costco employee is about $21. That's 75% higher.

Costco's profit per employee is only 42% higher than Walmart's (and of course this is after factoring in their higher wages). That means their employee compensation per dollar in profit is higher than Walmart's.
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I think I just threw up from all that spin.
 
BoberFett said:
Just another bit of info to take from the Walmart/Costco chart.

Walmart $11,142 profit per US employee

Costco $15,887 profit per US employee

There's an oft stated hatred of the idea that companies profit on the backs of their employees. So tell me, which company is profiting more on the backs of their employees?
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I see the point, but I think it's conflating the argument that Walmart is abusing the taxpayer in it's business model.

If we looked at how much tax subsidy per employee each of these companies is getting I think that gets us closer to the issue.


Not an easy solution either way b/c folks working at Walmart aren't just numbers, they are at Walmart and depend on subsidies and Walmart isn't going to just start paying them more. Ideally Walmart doesn't need to play a game with taxpayer funding of it's workforce to be profitable, but it does and it will continue.


As always, power is back with the consumer even though it will be unpleasant to not take advantage themselves of subsidized cost of goods sold at Walmart.

I think this whole thing gets back to offshoring jobs. Low priced superstores who pay employees very little (walmart or whatever else it'd be) are a natural evolution.

If the job market was fit this whole thing *might be different.
 
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Matt1970 said:
I think I just threw up from all that spin.
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Do you know what the word spin means? You use it a lot, but I don't think you do.

The post I responded to started off with a false premise, that people believe that profits are somehow compensation taken from the worker. The actual complaint is that profits are not shared equitably.

Then Boberfett looks at profit per employee without looking at wages too. The idea that Walmart is treating its employees more fairly by paying them $12 per hour while making $12k per year than Costco is by earning $15k while paying them close to twice as much is... baffling to say the least.
 
eskimospy said:
Actually the complaint is that profits are unequally shared, not that profits exist at all.

So the average hourly wage of a Walmart worker is about $12. According to Bloomberg the average wage of a Costco employee is about $21. That's 75% higher.

Costco's profit per employee is only 42% higher than Walmart's (and of course this is after factoring in their higher wages). That means their employee compensation per dollar in profit is higher than Walmart's.
Click to expand...

They maintain a lot more retail space per employee and manage more product (see: revenue) than a Walmart employee.

I'd have to break down more numbers, but I think the discrepancy between walmart and costco is basically entirely attributable to the fact that costco employs less retail workers. I bet the pool of their revenue that they alot towards retail workers is very close in terms of percentages, so the issue isn't compensation really it's how many people they employ and the productivity that they demand (or don't demand) from each retail employee.
 
eskimospy said:
Do you know what the word spin means? You use it a lot, but I don't think you do.

The post I responded to started off with a false premise, that people believe that profits are somehow compensation taken from the worker. The actual complaint is that profits are not shared equitably.

Then Boberfett looks at profit per employee without looking at wages too. The idea that Walmart is treating its employees more fairly by paying them $12 per hour while making $12k per year than Costco is by earning $15k while paying them close to twice as much is... baffling to say the least.
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I'll never understand why people argue for companies that pay so little that their employees need government assistance, then complain about liberals.
 
eskimospy said:
Do you know what the word spin means? You use it a lot, but I don't think you do.

The post I responded to started off with a false premise, that people believe that profits are somehow compensation taken from the worker. The actual complaint is that profits are not shared equitably.

Then Boberfett looks at profit per employee without looking at wages too. The idea that Walmart is treating its employees more fairly by paying them $12 per hour while making $12k per year than Costco is by earning $15k while paying them close to twice as much is... baffling to say the least.
Click to expand...

Absolute dollar per employee profit is higher and percentage of profit per employee is higher. Yet you want to try and claim Walmart is unfairly sharing profit because pay is 75% higher at Costco but profit per employee is only 42% higher. That's spin my friend.
 
Matt1970 said:
Absolute dollar per employee profit is higher and percentage of profit per employee is higher. Yet you want to try and claim Walmart is unfairly sharing profit because pay is 75% higher at Costco but profit per employee is only 42% higher. That's spin my friend.
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What are you talking about? I think it is a silly way to judge things regardless.

That being said, the idea that a company is treating its employees more equitably based on their profit per employee is ridiculous. By that standard the fairest company would be the one losing the most money. That's some amazing spin, friend.
 
momeNt said:
They maintain a lot more retail space per employee and manage more product (see: revenue) than a Walmart employee.

I'd have to break down more numbers, but I think the discrepancy between walmart and costco is basically entirely attributable to the fact that costco employs less retail workers. I bet the pool of their revenue that they alot towards retail workers is very close in terms of percentages, so the issue isn't compensation really it's how many people they employ and the productivity that they demand (or don't demand) from each retail employee.
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Seems like a reasonable hypothesis, the information you need is probably in their financials.
 
eskimospy said:
What are you talking about? I think it is a silly way to judge things regardless.

That being said, the idea that a company is treating its employees more equitably based on their profit per employee is ridiculous. By that standard the fairest company would be the one losing the most money. That's some amazing spin, friend.
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That would be my bad if I misunderstood you.
 
momeNt said:
They maintain a lot more retail space per employee and manage more product (see: revenue) than a Walmart employee.

I'd have to break down more numbers, but I think the discrepancy between walmart and costco is basically entirely attributable to the fact that costco employs less retail workers. I bet the pool of their revenue that they alot towards retail workers is very close in terms of percentages, so the issue isn't compensation really it's how many people they employ and the productivity that they demand (or don't demand) from each retail employee.
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Walmart has management issues. Every time I am in there I see employees wandering around aimlessly yet you go to check out and the lines are always 5-6 people long.
 
eskimospy said:
So businesses have shortened people to part time to comply with a regulation that's never been implemented? Fascinating. Tell me more!
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Perception of reality sometimes is greater than the actual reality in the business world because they are afraid to get caught short, companies have and continue to make decisions based on their perception of reality regardless of the truth, just like gas stations raise prices based on some rumor from the middle east that never materializes.
 
WackyDan said:
So that is what? A near doubling of the min wage? Fine, I should expect a doubling of my base pay and commissions then from my employer.

/s

Seriously though... I know certified EMT's that are making $15 and hour.
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With a $15 minimum wage, they'll be able to take easier jobs for $15, so EMT pay will have to be raised to attract talent. Rising tide lifts all boats.
 
Strk said:
I'll never understand why people argue for companies that pay so little that their employees need government assistance, then complain about liberals.
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It's the same crowd that argues for banning abortion, then complains about out of wedlock births and welfare.
 
I like how Costco has similar margins, pays so much better and has more competitive prices.

Wal-Mart needs to adjust their business model to stop trying to be the "everything" for a city.
 
Scholzpdx said:
I like how Costco has similar margins, pays so much better and has more competitive prices.
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Wal-Mart needs to adjust their business model to stop trying to be the "everything" for a city.[/QUOTE]

Costco is only competitive with their store brand items, outside of those items you are actually paying more than what you would find in Walmart for the same name brand items. Additionally the selection of name brand items found in Costco is also limited compared to what you would find in a Walmart store which typically carries significantly more SKU's of brand name items.

Furthermore Costco doesn't open up stores unless it has a significant base of high income earners to support its main revenue generator, i.e. membership fees unlike Walmart who typically serves areas (low income areas) who have been left in the cold by retailers like Costco because Costco would never seek to service these people with its retail store.

Lastly Costco stores operate with significantly fewer workers per then Walmart because Costco stores are basically modified warehouses that require less staff per store.

The reality Costco and Walmart are serving completely different segments of the retail marketplace and they are in no way competitors.
 
Scholzpdx said:
Is this a joke?
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You are the only joke here. Walmart does not directly compete with Costco in any meaningful way and vice versa. Costco's main customer demographic is made up of high income earners. Walmart's main demographic is primarily low income earners up to medium income earners.
 
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DucatiMonster696 said:
Cheese it up all you want but if wages for low skill jobs are made to expensive then they will be either shipped overseas where ever applicable or they will be automated out of existence if possible.
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Creating an incentive for people to become better skilled. Good thing for the economy.
 
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