Would you take a pay cut if the place where you worked was losing money? Update!

Brutuskend

Lifer
Apr 2, 2001
26,558
4
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Some background informant ion first.

I've worked at the same place for about 8 years. Around a year and a half ago the owned died and we got a new owner. The new owner is the best friend of the oldest daughter of the owner who died, and has never owned a business before. She also has NO experience with this type of business. (A Bicycle shop) Nor does she know anything about bicycles.

The building where our shop used to be was leased and the lease was going to be up around six months before the old owner died, so she knew when she bought it that we would have to move to a new location. Well she chose a new spot without asking any input from any of the guys who worked there and it's a BAD spot compared with where we were before. BTW we had been in the same location for about 15 years! We were right on a main drag and got lots of drive by business. Now we are tucked away inside a strip mall. To make matters worse, we have a WALL-MART in the same strip mall as well as a G.I. Joe's who both sell bicycles. (And cheaper than we can sell them, although they are for the most part CRAP)

Now Eugene is a HUGE bicycling town, and there are a LOT of shops here. To add to the problem, she wants to over charge on everything! Making it real hard to compete with the other shops in town, not to mention Wall-Mart and G.I. Joe's. She refused to have any kind of sale during the holidays and still refuses to have a sale now even though business is SLOOOWW. I've made MANY suggestion on how to help the business including diversifying by selling something else beside JUST bikes, having financing set up so we CAN sell the higher priced bikes we have and several others, putting stuff on sale, and making sure our prices are in line with the other shops in town. She seems unwilling to take any of my suggestions to heart. In fact, the only one she seems to listen to is the one guy she shouldn't, namely our resident ass kisser. He wants to be in charge SOOOO BADDD and yet he does not have the temperament for it. He continually piss's off customers by being rude to them and was fired by the previous owner for doing the same thing. After the old owner died, the two guys who remained (Merle and I) hired him back because we needed more help. (big mistake) At one time he convinced the new owner to give him MY job, which she did until he tripped over his attitude and almost got fired again. As well as his lack of common sense with dealing with the public, he is also a "yes Man". He will only tell the owner what he thinks she wants to hear. So THAT is the advice she takes. (human nature at it's finest)

So anyway, now the business is 75K in the hole and her answer to that is to cut pay, but not the ass kissers, just everyone else's! (we will all be making the same amount which means Merle and I get cut back to what the kiss ass is making, he gets the same pay as he was getting. To top this off, he has had, and will continue to have weekends off while I have worked Sat and Sun for 8 years)
rolleye.gif
Also up until recently he was the only one there getting 40 hours a week!

(the more I type, the more I think I should look for another job...)

I really want the shop to succeed, but at this point I'm real discouraged. Should I take the pay cut or walk? What would you do? I've talked with the owner and told her how unfair I think everything is, to no avail. Merle who has been there 15 years has volunteered to take the winter off and collect un employment (what I WAS going to do) so now it's just the ass kisser and me.
rolleye.gif


No cliff notes.

Read the damn thing or move along! ;)


Update: Well Mr. Ass Kisser got fired today (again) so now I'm pretty much IT. The boss called me at around 2:30 today asking if I would come in, telling me that The other guy had been fired, and of course being the kinda guy I am, I did. However I DID take my dog in with me. :) (She's gonna HAVE to bend a little one way or the other ;) )

We have two young guys working (being trained by ME of course) but they don't really KNOW anything. Merle started his NEW job today so he won't be coming back, not that I can blame him since he gets bennies @ the new job. He did say that if it had been one or two days ago he WOULD have come back. (What timing huh?)

One of the other shops in town was running a ad a few weeks ago for someone but I got there too late. The owner DID say that they would be hiring more people this summer so I planned on putting in a Resume there before the season hit. But now I'm in the position where if I do leave, it would be like driving a stake through the heart of the old shop. NO way could the place stay open if I left...

So now I'm in a bit of a quandary, to stay on the sinking ship till it goes down, or to play the Rat and get off, knowing that it will probably kill the place....
 

ViRGE

Elite Member, Moderator Emeritus
Oct 9, 1999
31,516
167
106
To answer the title's question: no, I would not take a pay cut. It is in my semi-informed opinion that 1 of 2 things usually happen in such a situation: the company still doesn't make it, and you find yourself suddenly out of a job one day; or the company uses this commitment to try to blue-ball you further, either by holding off raises, or cutting wages again. Taking a cut shows the company you don't believe you're as valuable as they have made you, and is nearly always detrimental to your situation. They would drop you in a heartbeat, so don't be so attached to them.
 

PCMarine

Diamond Member
Oct 13, 2002
3,277
0
0
Originally posted by: Ladies Man
find new job... then walk

as long as she's owner the company will fail.

Yeah, you say there are many bike shops around the area... I'm sure you can get hired for more pay since you have 8 years of experience under your belt.
 

Rubicante

Senior member
Sep 11, 2003
273
0
0
sounds to me like you should start looking for another job... the pizza place i'm at is in the same boat... money problems everywhere, so they fired half the employees and cut eveybody else's pay, along with jacking up prices... which, of course, backfired, with our current staff unable to keep up with demand, our old customers got fed up with the drop in service, plus the price hike, and so the whole place is hurting real bad... the new managers really dont know what theyre doing, and the owner has never had a clue. they wont listen to the people who have been working the longest, and this new woman they brought in as "operations manager" doesnt know her head from a hole in the ground... i'm outta there as soon as i can find something to offer comparable pay.
 

Rubicante

Senior member
Sep 11, 2003
273
0
0
sounds to me like you should start looking for another job... the pizza place i'm at is in the same boat... money problems everywhere, so they fired half the employees and cut eveybody else's pay, along with jacking up prices... which, of course, backfired, with our current staff unable to keep up with demand, our old customers got fed up with the drop in service, plus the price hike, and so the whole place is hurting real bad... the new managers really dont know what theyre doing, and the owner has never had a clue. they wont listen to the people who have been working the longest, and this new woman they brought in as "operations manager" doesnt know her head from a hole in the ground... i'm outta there as soon as i can find something to offer comparable pay.
 

TheAudit

Diamond Member
May 2, 2003
4,194
0
0
Keep the job until you can find something else.

From how you described it the business is going downhill and you would be just wasting your time before it eventually closes.
 

gistech1978

Diamond Member
Aug 30, 2002
5,047
0
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i would start looking for another job, personally.

i can understand if you had a repoire and respected the previous owner. especially since you were there so long, im sure you probably could have taken other jobs during this time but liked or felt an obligation to work for the previous owner (perhaps im assuming too much).

but do you really feel you have an obligation to this woman?

she obviously wont listen to reason and someone with a lot of experience (you).
she has no idea how to run the business.
i would say follow merle's lead and get off that sinking ship.
 

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
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Loosing is not a word. Losing is on the other hand. Why does everyone spell this word incorrectly?

lose ( P ) Pronunciation Key (lz)
v. lost, (lôst, lst) los·ing, los·es
v. tr.

1. To be unsuccessful in retaining possession of; mislay: He's always losing his car keys.
2.
1. To be deprived of (something one has had): lost her art collection in the fire; lost her job.
2. To be left alone or desolate because of the death of: lost his wife.
3. To be unable to keep alive: a doctor who has lost very few patients.
3. To be unable to keep control or allegiance of: lost his temper at the meeting; is losing supporters by changing his mind.
4. To fail to win; fail in: lost the game; lost the court case.
5. To fail to use or take advantage of: Don't lose a chance to improve your position.
6. To fail to hear, see, or understand: We lost the plane in the fog. I lost her when she started speaking about thermodynamics.
7.
1. To let (oneself) become unable to find the way.
2. To remove (oneself), as from everyday reality into a fantasy world.
8. To rid oneself of: lost five pounds.
9. To consume aimlessly; waste: lost a week in idle occupations.
10. To wander from or become ignorant of: lose one's way.
11.
1. To elude or outdistance: lost their pursuers.
2. To be outdistanced by: chased the thieves but lost them.
12. To become slow by (a specified amount of time). Used of a timepiece.
13. To cause or result in the loss of: Failure to reply to the advertisement lost her the job.
14. To cause to be destroyed. Usually used in the passive: Both planes were lost in the crash.
15. To cause to be damned.
 

rsd

Platinum Member
Dec 30, 2003
2,293
0
76
Don't walk, RUN away from there. It doesn't sound like a job that has a ton of future or am I mistaken? You did say you worked there for 8 years, but it sounds like a sales job. I'd imagine you can do better.
 

CPA

Elite Member
Nov 19, 2001
30,322
4
0
You and your buddy should do whatever you can to open up your own shop.
 

BCYL

Diamond Member
Jun 7, 2000
7,803
0
71
From your post it is clear that the shop will fail as long as your owner stays... It would make sense to take a pay-cut if you believe the shop will succeed eventually and the company is simply in a cash-crunch... But from your post I dont think you think it will happen...

So find a new job and walk now... no point sticking around if there's nothing you can do to help the company (since the owner isnt listening to you), and the company looks doomed to fail...
 

Brutuskend

Lifer
Apr 2, 2001
26,558
4
0
Originally posted by: rsd
Don't walk, RUN away from there. It doesn't sound like a job that has a ton of future or am I mistaken? You did say you worked there for 8 years, but it sounds like a sales job. I'd imagine you can do better.

No I'm the manager and head mechanic. I also was manager at another shop before taking this job. And of the people there, I'm the ONLY one with actual training. (United Bicycle Institute graduate) Though I do do sales as well.

The problem now is it's the off season and no other shops will be hiring until spring.
 

Nitemare

Lifer
Feb 8, 2001
35,461
4
81
Already took two 5% paycuts. If it was anything more than that I would have walked. Just got a raise that nullified one of them. Hopefully they will be eliminated before the end of the year.
 

Encryptic

Diamond Member
May 21, 2003
8,885
0
0
I'd definitely find a new job and bail ASAP. It sounds like the new owner is going to run the place into the ground from what you're saying.
 

Jzero

Lifer
Oct 10, 1999
18,834
1
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Originally posted by: Dissipate
Loosing is not a word. Losing is on the other hand. Why does everyone spell this word incorrectly?

Not to be pedantic, but loosing IS a word even though it would not be used properly in this context.

If the owner was loosing money, it would imply she was handing it out ;)
 

cthulhu

Golden Member
Feb 19, 2000
1,451
0
76
Man, I hate that for you. I've often heard of similar situations when an owner dies. Unfortunately, the company usually ends up going under. The new owner sounds like she's only interested in making as much money as possible before the axe falls. I would suggest that you start looking for another job.
Good luck.
 

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Yep. Time to get a new job. Stay until you find one, but that place is going under and you'll be getting nothing but unemployment soon if you stay too long. She has put that place in the hole by a few months' worth of gross sales (I'm assuming) in only ~18 months, with no signs of changing. It only goes downhill faster from here.

One thing that might help. Any finance company would be happy to provide financing to your customers, with no cost or risk to the shop. Just give the local Household or American General Finance companies (I know Eugene has both of those) a call, and they'll fight over your little piece of business. It's so easy and they do it all for you -- take the applications (right in the shop even), process and approve the financing (might take a day at most), etc. And the shop gets paid in full right away, you never have to worry if the customer makes the payments or not.
 

GalvanizedYankee

Diamond Member
Oct 27, 2003
6,986
0
0
Been there and stayed till the last dog was hung. Never again!!

Its easier to find a job when you have a job. Start looking now and only
discuss your move with the closest of friends.

In my case the company was pushing an ESOP program, employee sponsored
ownership participation. We were being pressured to "invest" 15% of our gross
pay into common stock. Out of 600+ ppl only 6 refused, I was one.
A year later the company folded and all funds were lost.

Good luck in your decision. In So Cal I shop Super Go..